Skip to main content

New Investment App Users Are Flocking to Crypto, Survey Finds

Investment apps are giving people more ways than ever before to buy and sell cryptocurrency.

Traders in the past were limited to crypto exchanges, like Gemini and BiNance, which feature complex registration and transaction processes that can be intimidating to newcomers.

Apps such as Robinhood, SoFi, Webull, Public and others have simplified the process for retail consumers. These apps act as crypto brokers, placing digital coin orders directly with exchanges on the user’s behalf.

Now, investors can dabble in crypto in the same app they use to buy more traditional assets like stocks and ETFs.

Investment App Users Eye Crypto’s Big Paydays

Volatility is a trademark of cryptocurrency. Yet a majority of investment app users accept those roller-coaster price fluctuations in exchange for high potential payoffs.

The Penny Hoarder polled nearly 2,000 investment app users in December 2021, and over half of respondents (51%) view cryptocurrency as a high risk, high reward investment. On the flip side, nearly 30% of survey respondents considered cryptocurrency a low-risk investment.

Those perceptions — coupled with investors’ real money — have been on a wild ride.

Bitcoin — the long-time crypto heavyweight — increased 63% in 2021 alone, driving the entire crypto market to a combined $2 trillion in value.

Ethereum also experienced eye-popping growth in 2021, rising in value by more than 400%.

While Etherum nearly doubled in price from February 2021 to February 2022, the currency experienced massive booms and busts along the way:

  • February 2, 2021: $1,513
  • May 14, 2021: $4,080
  • July 20, 2021: $1,786
  • Nov. 8, 2021: $4,811
  • Feb.1, 2022: $2,789

In early 2022, the global crypto market plummeted, erasing more than $1 trillion in wealth. The volatility of cryptocurrency continues to raise concerns about the inherent risk of investing in this speculative and unregulated market.

Bitcoin, Ethereum and Dogecoin Are the Most Popular Coins Among Investment App Users

Bitcoin reigned No. 1 with investment app users — 52% of respondents say they’ve bought the digital coin.

Etherum ran a distant second with 35% of respondents buying in.

Dogecoin — a headline-grabbing memecoin hyped by billionaire Elon Musk in 2021 — was the third most popular cryptocurrency among survey respondents, at 34%.

Where are young investors getting advice about the markets? Celebrities and social media.

Celebrities Hold Sway With Crypto Buyers

Celebrities and influencers are also throwing their weight behind cryptocurrency, promoting digital assets to their legions of followers.

More than four in 10 respondents (45%) said a celebrity influenced their decision to buy cryptocurrency, according to survey data.

High-profile figures to publicly back crypto coins and exchanges include Matt Damon, Paris Hilton, Jamie Foxx, Tom Brady, Ashton Kutcher and Gwyneth Paltrow.

Interestingly, respondents aged 35-44 were the group most likely to say a celeb persuaded them to buy crypto, at 53%.

In contrast, respondents aged 54 and older were the least likely to buy crypto based on a celebrity endorsement, at 32%.

Celebrities aren’t financial experts, and their growing influence over young investors is raising concern — and prompting legal action.

Lawyers filed a class-action lawsuit against Kim Kardashian, former NBA star Paul Pierce and boxer Floyd Mayweather in January 2022, accusing the celebrities of hyping a little-known coin called EthereumMax.

The suit claims EthereumMax operated a “pump and dump” scheme, where misleading marketing is used to inflate the price of an asset, “causing investors to purchase these losing investments at inflated prices,” according to court documents.

The lawsuit is the latest example of crypto’s mainstream popularity — and speculative nature.

About the Survey

The Penny Hoarder conducted the random national survey in partnership with Pollfish from December 15-18, 2021. Pollfish screened respondents by asking if they had used at least one investment app regularly within the past year: 3,581 people responded to the screening question, with 2,000 people who used at least one investment app regularly advancing to the survey’s 20 questions.

The Penny Hoarder analyzed the data and removed 82 responses that were not valid, bringing the response count to 1,918. Responses were weighted for age and gender so that each response is representative of the U.S. population. The overall survey’s margin of error is +-2 percentage points at a 95% confidence interval.

Comments

Popular posts from this blog

How To Get Paid To Go to College: 12 Tactics to Consider

College is an exciting time for students to live on their own, make new memories, and create lasting friendships. What’s not exciting is the debt you might inherit once you graduate. In the last decade, student loan debt increased by nearly 70 percent , with over 43 million students facing outstanding student loan debt.  What if there was a way you could get paid to go to college and avoid taking out any student loans ? Sounds too good to be true, right? Well, we have twelve tactics for you to consider that just might help you go to college for free. Keep reading for our favorite tips or jump to a specific tactic below to learn more!  Submit a FAFSA Apply for Grants Research Various Scholarships Consider Community College Attend Tuition-Free College Check if You Qualify for Tax Breaks Become an RA Join the Military Get a Work-Study Job Seek Off-Campus Employment Serve in the AmeriCorps Ask If Your Employer Has Tuition Reimbursement 1. Submit a FAFSA Applying for fina

Everyday Items That You Can Recycle for Money

Why toss things in the trash when you can recycle them — and make a little money in return? By diverting certain items from the waste stream and keeping them out of landfills, you can also make extra money or help out worthy causes. From scrap metal to ink cartridges, bottle caps to construction materials, you can recycle a huge variety of items in exchange for cash. We’ve also included information on how to recycle items for the sake of good will. Ready to see all the different things you can recycle for money? How to Recycle Household Items for Cash First, you’ll need to find a recycling center or collection point that is looking for what you want to get rid of. While the goal is to make money, you might settle for a donation — which could be tax deductible — if it means clearing out the garage. The collection center will also let you know how to prepare items to their specifications. Find a Collection Point To find a recycling center near you, head to Earth911.com and plug in

Fizz Debit Card Review: A Credit Builder for College Students

If you’ve struggled with poor credit or are completely new to credit, you know how hard it can be to build a strong credit score. The lenders who offer the best credit products and the lowest interest rates seem only to want to deal with clients with excellent credit. But how do you build credit without debt ? To help, an increasing number of fintech companies are developing credit-builder loans and other products to help people establish or rebuild their credit. Some are more successful at it than others. In this Fizz review, I’ll explain how one company aims to help college students build credit and create healthy financial habits. But how does Fizz work, and is it safe to use? I’ll answer those questions and more in this Fizz review. Table of Contents What Is Fizz? How Does Fizz Work? How Does Fizz Make Money? Key Features of Fizz Build Credit Control Spending Earn Rewards Learn About Money Pros and Cons of Fizz Fizz Alternatives Extra Debit Card Sesame Cash