Cryptocurrency is starting to hit mainstream headlines more frequently. Investing platforms, institutions and the government are all starting to consider what value should be attributed to cryptocurrency. Many investors are debating whether or not to allocate a portion of their investment portfolio to cryptocurrencies.
Cryptocurrency is one of the riskier asset classes to consider investing in, and there still is no clear picture as to which cryptocurrency is the right investment. As reported by Gemini in their 2021 The State of U.S. Crypto report, the average age of those invested in crypto is 38 years old. As of 2021, the average number of people invested in cryptocurrency is only 14% of the sample that was polled. However, in the rest of the group, 63% reported that they are curious about investing in cryptocurrency. Since the early days of Crypto, Bitcoin (BTC) has been the most popular conversation starter. In Gemini’s report, 95% of the overall group polled were familiar with Bitcoin, but only 23% knew about Ethereum (ETH). As for the rest of the top cryptocurrencies, even less was known by the majority of those who were part of Gemini’s research. A key takeaway from the report is that those who are crypto-curious prioritized understanding the space.
It is widely known that investing in crypto comes as a high-risk, high-reward investment. Both Bitcoin and Ethereum are volatile investments and are known to lose 80-95% of their value in less than a year.