Despite its surge in popularity, Australians need clarification over crypto, with three-quarters (71%) having less than a basic understanding of the market or how to invest.
New research on behalf of the global cryptocurrency app Luno found that Australians need to feel more confident in their own knowledge and understanding of the asset when it comes to investing. Just under half (41%) describe their understanding of the crypto market as minimal, while a third (30%) feel they know nothing about it.
Digital currency has gained significant attention as a modern investment option since its invention in 2009. Created through blockchain technology and only available for buying and selling online, there are currently over 20,000 digital currencies in circulation, including Bitcoin and Ethereum.
While most Australians still need to understand the asset, almost half (47%) are still considering investing in cryptocurrencies in 2023. Unfortunately, this means millions of Australians could be entering the market this year ill-equipped to make informed financial decisions.
“One of the benefits of cryptocurrency is that anyone can invest. It was designed to be decentralised, meaning everyone has the power to access, trade and invest in coins. However, like any financial system, it’s imperative that potential investors do their research before entering the market.” says James Logan, Country Manager, Australia, Luno.
For those considering dipping their toe into the new financial system, an opportunity to diversify their investment portfolio (80%) is the main driving factor.
However, the potential long-term benefits are also appealing to Aussies. Two-thirds (66%) say they would like to save for future investments, such as a house deposit, while over three-quarters (77%) cite the rising cost of living driving their desire to start investing.
“For some people, cryptocurrencies provide an opportunity to build on an existing investment portfolio. This means they may already have investments in traditional markets such as stocks and shares and want to future-proof their portfolio by diversifying the assets they own. For others, this may be their first investment ever,” adds Logan.
“Our research shows that Aussies are feeling inspired to invest in the New Year but it’s concerning to see how many don’t feel confident in their understanding of it. We encourage anyone wanting to invest in crypto to DYOR (do your own research) in order to make informed and educated decisions with long-term goals in mind. If you’d like to invest, consider talking to a specialised financial advisor, or use the resources available on crypto-exchange platforms.”
Founded in 2013, Luno is a cryptocurrency investment app, which also does crypto education. Available to Australians since its launch in 2020, Luno also operates across the US, Europe, Asia and Africa.
Luno is part of the Digital Currency Group, the world’s largest blockchain investor, with over US$40 billion in crypto under management. The business undergoes independent proof of reserves audits each quarter to assure customers that their crypto is safe.