Giant social trading platform, eToro, recently revealed the results of a survey which involved 1,000 online investors.
Research Methodology
eToro had commissioned Provoke Insights, an independent market research company, to survey 1,000 investors between the ages of 20 and 65. According to a press release by eToro, the survey sample “matched Census for geography, to get an accurate depiction of the online trading community.” Notably, the main purpose of the survey was to determine how many online investors were interested in cryptocurrencies.
In order to ensure that there were a “sufficient number” of digital currency traders, the researchers reportedly “oversampled cryptocurrency by 285 respondents.”
The survey results showed that “despite [having] a clear interest in investing” in digital currencies, the investors said there was lack of quality educational resources for cryptocurrency trading. Many of the survey respondents stated they had not invested substantial amounts in digital assets because they were unable to learn enough about them.
“Education Is The Key Barrier” Preventing Investors
“Education is the key barrier preventing online investors from purchasing” cryptocurrencies, the survey report concluded. Significantly, 69% of those surveyed wanted to learn more about cryptoassets. At present, “proficiency in the cryptoasset class is … low” and about 75% of survey respondents who didn’t own digital currencies said they are “not knowledgeable” about the emerging asset class.
One-fifth, or 20%, of the respondents who owned cryptoassets admitted that their “understanding is lacking”, meaning they did not know what to expect from their investments.
Commenting on the survey’s findings, Guy Hirsch, the US managing director at eToro, remarked:
Late 2018 has seen the cryptocurrency market take a huge tumble, but that has not stymied investors' interest in the asset class and its potential. Online investors are still keeping their eye on cryptocurrencies, but this survey revealed that there is a serious lack of educational resources available to those who would like to invest in or learn more about crypto.
Investors Must Have “Access To Resources”
He predicted that assets “will become increasingly tokenized” in the foreseeable future. In order to prepare investors for the new crypto economy, the eToro director emphasized the importance of providing prospective investors “access to the resources they need” to make informed decisions.
Notably, 44% of the online investors surveyed said “education is the main reason for not trading crypto.” A significant number of Millennials (who are “more knowledgeable” about digital assets than the other age groups surveyed) also admitted they were not investing in cryptocurrencies due to “lack of education”, meaning there were not enough reliable educational resources for investors.
The researchers noted that there are “limited resources” for learning about cryptoassets. Approximately 67% of investors who use eToro’s trading services said they try to learn from the resources provided by the social trading network. About 43% of survey respondents said they use social media outlets including YouTube and online crypto chat groups to learn about digital currencies.
“Investment Gap Between Men & Women”
Importantly, 97% of “both Millennial and Gen X” cryptocurrency traders wanted to learn more about investing in the new asset class. However, survey respondents also cited some concerns about trading digital assets, which included the “fear of scams” and the extreme “price volatility” of cryptocurrencies.
Acknowledging that there are not enough women investing in digital assets, Hirsch said::
The investment gap between men and women is still quite stark. There are many studies that indicate this, and we are beginning to see companies provide more financial services tailored specifically for women. With cryptoassets, we need to begin closing the gap now by providing education and resources so more women feel comfortable tapping into the asset class while it is still in its relative infancy.
