Cryptocurrency Investment Trends & Survey Insights - 2023

Key Findings

• Nearly 1 in 3 survey respondents have invested money in cryptocurrency.
• Top reason for crypto investing? 47.2% agree it’s “fun to play with.”
• Respondents reported an average annual crypto investment of nearly $2,000.
• Meanwhile, Personal Capital Dashboard users who track their crypto investments have a median crypto portfolio of $7,000.

Of the many financial fads during this past year, there is perhaps none so dramatic as the coronavirus cryptocurrency craze. By mid-April, Dogecoin was up 18,000% from a year prior. In February, Bitcoin hit a $1 trillion market cap — and was the fastest asset to ever do so. Then last month, Bitcoin fell to more than three-month lows.

A contingent of investors recently surveyed by Personal Capital affirmed they’re along for the ride — whether for fun, extra revenue, or keeping up with the Doges.

What is Cryptocurrency?

Cryptocurrency is a digital currency that can be used to buy goods and services. Unlike other online financial services (like PayPal and Venmo) that rely on existing credit or debit accounts, any two people in the world can send crypto to each other without the involvement of any bank, government, or financial institution.

Should You Buy Crypto?

Personal Capital Chief Investment Officer Craig Birk said he believes that no investor needs to own cryptocurrency, mainly because “you can have a great investment portfolio without it.” As we’ve witnessed throughout cryptocurrency’s relatively brief history, it tends to be volatile and risky. Managing risk is important.

Read More: Beginner’s Guide to Portfolio Diversification

So should you buy? To help you choose, Birk responded:

• Probably, if you have conviction you will eventually sell at a higher price.
• Maybe, if you think it will be fun to bet on and you can afford to lose your investment.
• Probably not, if you do not feel a compelling need to do so or are primarily worried about missing out.

“FOMO is usually a bad reason for an investment,” Birk said. “Those who tend to experience FOMO or envy are also likely to suffer higher emotional regret in the event of losses. For any investment, it is important to understand what you are buying, the risks, and the opportunities.”

Free Crypto Tracking on the Personal Capital Dashboard

Investors who use Personal Capital’s free and secure online financial tools can now track their cryptocurrency as part of their overall net worth.

Read More: 5 Things to Know about Personal Capital’s New Crypto Tracker

This feature launched March 9. Thus far, Personal Capital is supporting more than 17,000 crypto investors with tracking:

• Approximately $1 billion in cryptocurrency investments
• A median crypto portfolio of $7,000, or about 3.5% of a Personal Capital user’s investments

“Cryptocurrency is a fascinating story, with new drama on an almost daily basis,” Birk said. “We are closely watching along with everyone else.”

Millions of people use Personal Capital’s financial technology to view all of their assets and liabilities in one place. Beyond tracking crypto and other accounts, you can also analyze your investments, uncover hidden fees, and create financial plans for long-term goals, like buying a house or retiring.