Cryptocurrency now traded by one in ten Aussies, but most say it is just a bit of fun

A survey by consumer group, Choosi, published late last year found that roughly one in ten Aussies are now dabbling in cryptocurrency.

However of those, most said their main reason for doing so was for “fun and excitement”.

Covid-related boredom may have also played a part, with 60 per cent of Australians that trade crypto having started within the past 12 months.

It also far more popular with young people than the older generations, and males are three times more likely than females to already be invested.

According to the study, 19 per cent of Gen Y are getting involved, compared to six per cent of Gen X and just four per cent of Baby Boomers.

Of Australians in general, 60 per cent said they believe crypto is a “very risky” investment and 51 per cent said there is a lack of transparency and regulatory accountability.

Others are taking the potential rewards more seriously, with 46 per cent believing their investments hold long term growth opportunities and 32 per cent citing short term returns.

Privacy of transactions (21 per cent) and trusting crypto over other financial assets (16 per cent) were also popular reasons.

Meanwhile, those of us who still don’t really understand what cryptocurrency is are far from alone – even among people who have put there money in it.

Around 38 per cent of crypto investors admitted to having little or no idea how it all works.

“It is concerning that many investors do not fully understand what they are investing in and don‘t have the appropriate risk profile to allow them to invest in such volatile markets,” said financial literacy specialist at Griffith University, Whitely Bradford.

“Cryptocurrency is very speculative, and people need to conduct their own research and seek advice before investing.”