Crypto investments have taken over the world of financial markets, with lots of people hoping to increase their wealth by purchasing various cryptocurrencies.
It is not just fiscal experts that are dipping into crypto either, as all types of individuals are hoping to make money with their virtual accounts. In fact, according to official government statistics, ten per cent of UK adults were thought to hold a crypto asset in February 2022, with this figure likely to be even higher now, Forbes reported.
The Financial Conduct Authority (FCA) supports this, claiming that almost five million people in Britain held a crypto token of some sort in August 2022, which is a huge increase from the year before when just 2.3 million did.
This demonstrates “growing interest in crypto assets” and reveals the increasing importance for investors to look after their virtual finances as well as their bank accounts.
The adoption of crypto assets increased during the pandemic, due to the fact that earners had a greater amount of disposable income and more time to look up investment opportunities.
How much money do crypto investors hold in accounts?
According to the FCA, the mean value of holdings is £1,595. While some (two in five) have less than £100 in cryptocurrencies, these are likely to be the crypto curious and not the investors that are interested in making any substantial gains.
Thirteen per cent have between £101 and £250 in crypto assets, 11 per cent have between £251 and £500, 13 per cent have £501 to £1,000, 14 per cent own £1,001 to £5,000, six per cent have £5,001 to £10,000, and five per cent have over £10,001.
Adults over the age of 45 are more likely to have more money in crypto than other age groups, as their earnings are typically higher and they have a greater disposable income.
While those with cryptocurrencies under £1,000 are more likely to have bought theirs randomly, instead of to boost their investment strategy, those with over £1,000 have thought more carefully about buying crypto assets and have done their research.
There is a higher chance investors with more than £10,000 worth of crypto assets bought theirs with previous investment gains or with their long-term savings.
What are the main cryptocurrencies?
One of the things that deters people from investing in crypto is the lack of knowledge about how it works, and what currencies to buy.
Indeed, there are lots available these days, not to mention non-fungible tokens (NGTs) and other forms of investments.
However, the main choices are Bitcoin, with a market value of £1.02 trillion, Ethereum, which is worth £315 billion, Tether, which has a market cap of £83 billion, BNB, worth £66 billion, and XRP (Ripple Network), which has a value of £25 billion.
Between April 2019 and April 2024, Bitcoin’s price soared from £4,060.31 to £54,678.78. So anyone who invested in the currency just five years ago would have made a fortune on their gamble.
At the same time, Ethereum could be bought for £90.41 in 2019, whereas it is now £2,724.10.
Those who diversify their portfolio and purchase more than one type of currency spread their risk, increasing their chances of making money.
For instance, if they put all their savings in XRP in 2023, they would have seen a unit soar from £0.36 to £0.62, but then plummet to £0.42 by April 2024. Therefore, while they have still made a profit on their investment, it is marginal.
In some cases, the value could fall lower than what they paid for it, for example if they bought it when it was sky-high.
Therefore, it is safer to buy different types of currencies, as this means if one declines in value, there is a chance another will still do well. Consequently, investors will not lose as much.
How can Volta help investors manage their assets?
Crypto investors who want to diversify their portfolio might find it difficult to manage all their different assets, and they certainly will not want to lose track of where they have put their money.
The good thing about having a crypto management app like Volta is that it enables investors to have full control of their assets despite being across multiple chains.
Here are just some ways it can improve organisation of distinct crypto investments:
Create multiple wallets
Investors can create several wallets for their currencies, so they can see how all their investments are doing, even though they remain separated.
This multi crypto wallet app enables them to be more organised with their digital assets, particularly as the Volta app supports more than 90,000 trading pairs, so it is highly likely this will include theirs.
Look after different types of accounts
Lots of crypto investors are professionals these days, with many people having become millionaires, and even billionaires, from investing in this form of finance.
The Crypto Wealth Report found there are more than 88,200 crypto millionaires across the world, and even 182 crypto centi-millionaires, who have holdings worth more than $100 million. When it comes to crypto billionaires, there are 22, with six of these having reached this status thanks to their investment in Bitcoin.
Having seen how lucrative crypto can be, therefore, many investors have several types of accounts in their portfolio, including ones for business and ones for personal use.
Having a platform that enables them to see all their accounts in one place means they can manage their assets better, without losing track of any of them.
Stay updated with market trends
A crypto app also helps investors make more money, as they can stay up to date with the latest market trends.
It provides live price updates of the biggest currencies, so investors can see what trends are emerging and use this information to decide what to do next.
By being able to stay updated with what may affect the market, and, therefore, their investments, they can buy or sell cryptocurrencies at the right time to either avoid a decline in asset value or make as much profit as possible.
Spend currencies
The Volta card also helps investors overcome one of the biggest obstacles of investing in cryptocurrency – spending their earnings.
According to the FCA, a main reason for not buying crypto assets is because people are not sure if, or where, they can use them in exchange for a good or service.
A Volta card acts like a debit card for cryptocurrency, so investors can hold their assets there and spend them just like they would cash.
More than 100,000 retailers all over the world accept the card, including Apple, Adidas, Amazon, Samsung, Gucci and Walmart.
It also allows investors to take out international ATM withdrawals, so their crypto assets can instantly be turned into money.
Therefore, anyone worried their earnings will stay in virtual form can rest assured that crypto has as much value in the real world as traditional currencies when using a crypto management app and card.