Crypto-assets have been highly publicized in recent years. Even with this attention, recent research shows crypto-assets still remain mysterious to consumers in Canada and abroad.
In this article, we have compiled and highlighted key information from two separate studies which examine public understanding of crypto-assets. We also provide some educational resources to help you learn more about Crypto Assets.
Studies Reveal Mistakes and Traits Common Amongst Crypto-Investors
Studies in Canada and the UK have suggested that many consumers don’t understand, or overestimate their understanding of what they are purchasing when they invest in crypto-assets.
Common Crypto-Investor Misconceptions and Mistakes
- Some consumers expressed interest in purchasing a whole coin – not realizing they could purchase part of one.
- Some consumers seemed to believe that they were purchasing tangible assets.
- Many consumers didn’t appear to have any strategy to sell their assets.
- Some investors purchased their investments without conducting any due diligence.
Common Traits amongst Crypto-Investor
- A majority of consumers didn’t know what crypto-assets were or were unable to define the term.
- In both studies, the most aware demographic, and most likely owners of crypto-assets, were men between the ages of 18-44.
- Crypto-asset owners seemed to be looking for ways to get-rich-quick – citing friends, acquaintances, and social media influencers as key investment decision motivators.
- The majority of crypto-asset owners said they used disposable income to invest.
- Some consumers are appear to be aware of the potential risks associated with crypto-asset investments and express that the risk is part of the attraction.
Studies Highlight Consumer Experiences with Crypto-Assets
Consumers in one of the studies who acquired crypto-assets using a crypto-asset trading platform, reported experiencing issues using these platforms, including:
- A halt in trading;
- Problems withdrawing money from their account;
- Problems transferring money into their trading platform account; and
- Not understanding the fees they are being charged.
Learn More about Crypto-Assets
Crypto assets include cryptocurrencies, blockchain companies, cryptocurrency funds, and Initial Coin Offerings (ICOs) and Initial Token Offerings (ITOs). To learn more, watch our What are Crypto Assets video – it explains four basic types of crypto assets.
Watch our blog for a Guide to Crypto Assets that will be published in mid-May.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
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