64% of American investors consider crypto to be "very risky": Survey

Although access to cryptocurrency is becoming easier, the majority of people in America are still not keen on this type of asset.

According to a new Gallup survey conducted in mid-June, only 14% of adults in America own cryptocurrency – a number that has increased compared to before but still represents a small proportion of the investor community.

Surveys show that skepticism towards cryptocurrency remains very deep. Specifically, 60% of respondents said they are not at all interested in buying cryptocurrency, while only 17% admitted to being curious. Notably, only 4% indicated that they plan to buy cryptocurrency in the near future.

In the group of American investors who own more than 10,000 USD in stocks, bonds, or investment funds, 55% believe that cryptocurrency is a “very risky” asset. However, the ownership rate in this group has surged from 2% in 2018 to 17% today.

The cautious mindset is not too surprising, even with America currently having a president who supports cryptocurrency and a legal framework that is gradually becoming clearer. Although the strong bull run in 2021 made cryptocurrency a popular topic, the subsequent “crypto winter” – with a series of high-profile bankruptcies like FTX, along with scams and security attacks – has severely undermined retail investor confidence.

Although recently the market has witnessed a flow of institutional money coming in, helping to enhance the legitimacy of cryptocurrencies, many individual investors – who have incurred losses in the past – remain very cautious.

In 2020, Gallup recorded that only 6% of American investors owned cryptocurrency. Although this percentage has increased, another survey from the Federal Reserve (Fed) even showed that the actual number could be higher, with 12% of adults owning this type of asset.

The data also shows a significant disparity among demographic groups. While 1/4 of men aged 18 to 49 own cryptocurrency, this rate drops sharply among women and older adults. Individuals with a college degree and higher income have a participation rate above average, while older adults and low-income households are almost absent from this space.

The knowledge gap is also a noteworthy issue. Almost all survey participants have heard of cryptocurrency, but only 35% say they actually understand how it works. The highest level of understanding is found among young men and high-income individuals.

Even among those who claim to understand cryptocurrency, the majority still consider it a highly risky investment. Among American investors, 64% rate cryptocurrency as “very risky,” a slight increase from 60% in 2021.

The survey also found that only about 1 in 7 Americans own cryptocurrency, while nearly 6 in 10 own stocks or real estate. Only 4% believe that cryptocurrency is the best long-term investment channel.

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