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2.3 million Brits Buy Crypto Says FCA – Where to Buy Bitcoin

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The UK’s Financial Conduct Authority (FCA) reckons another 400,000 people have bought into crypto this year, up from 1.9 million last year.

The regulator estimates that 78% of the adult population have now heard of cryptoassets, marginally up on last year’s figure of 73%

Also, as investing in crypto has spread, so too have the doubts about the validity of the asset class, with less seeing its a purely speculative gamble. The number who say that crypto is a gamble has dropped from 47% last year to 38% this year, while the report found that an increasing number saw crypto as complementary to the mainstream investments and in some cases as replacing them.

This is the fourth annual survey conducted by the FCA into attitudes to crypto and investments into the asset class.

Perhaps in a sign of how interest and investment in the space has grown, there has actually been a decline in the level of understanding of what crypto is and how it works. Only 71% correctly defined cryptocurrency when presented with a multiple answers list.

 

bitcoin on chain data 17 june 2021
Bitcoin on-chain metrics: hashrate; transaction volumes; price. 17 June 2021. Source: Messari

Buy crypto for a positive experience

Interestingly, over half of users of crypto, i.e those that buy bitcoin and other cryptocurrencies, described having a positive experience – the first time the survey has recorded an overall response, at 53%, up from 41% last year. Those who regretted investing in crypto, because they are nursing losses, was down from 15% to 11%.

Ten per cent of those who said they had heard of cryptocurrency were also aware of consumer warnings put out by the FCA. Of that number, 43% said they were put-off buying crypto as a result. The survey also found that most consumers recognise that crypto investments are not protected, but 12% of crypto users thought they were.

Sheldon Mills, FCA’s Executive Director, Consumers and Competition, commenting on the report said: “The research highlights increased interest in cryptoassets among UK customers. The market has continued to grow, and some investors have benefitted as prices have risen.”

He continued: “However, it is important for customers to understand that because these products are largely unregulated that if something goes wrong they are unlikely to have access to the FSCS or the Financial Ombudsman Service. If consumers invest in these types of products, they should be prepared to lose all their money.”

The FCA has regularly reiterated the risk associated with investing in crypto with a number of consumer warnings in which it has spelled out that investors must be prepared to lose all their money. This is a mantra regularly by the governor of the Bank of England Andrew Bailey

The FCA is part of the UK Cryptoasset Taskforce, which also includes HM Treasury and the Bank of England.

Buy bitcoin at eToro

Consumers looking to invest in bitcoin or other crypto can now do so on venues that are regulated by the FCA, although the crypto asset class itself is not regulated. That means you are not covered for losses should a cryptoasset that you invest in fail due to events such as business bankruptcy, fraud or hacks.

eToro is one of the top brokers globally and you can buy 23 cryptoassets on the platform. If you do buy on eToro you should also download the separate eToro Wallet app, which is a fully featured self-custody wallet, which means you can transfer crypto from your trading account direct to the wallet and vice versa.

You can also use the wallet to move crypto funds directly to any other address on the relevant blockchain. However, sending the wrong coin type to the wrong chain will mean you lose your funds, so if you are a crypto newbie you may prefer to keep your funds at eToro until you become more confident.

Looking to buy or trade Bitcoin (BTC) now? Invest at eToro!

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