Britons borrow funds to purchase cryptocurrency

According to a new study, more than two thirds of British investors have bought cryptocurrency with borrowed funds rather than using their personal savings or income.

The report comes at a time when the crypto market is experiencing plummeting prices, resulting in heavy losses for investors. It found that, overall, 64 per cent of respondents investing in crypto had used one – and in some cases, multiple – credit facilities to complete their transactions. While at the time, this may have appeared to be a sound investment strategy, prices of the core cryptocurrencies have now fallen at an alarming rate, dropping by as much as 100 per cent.

As a result, this dramatic drop will leave many cryptocurrency investors facing substantial losses, while simultaneously being saddled with the extra cost of making repayments on their original credit agreements.

Cryptocurrencies are an exceptionally risky and volatile investment strategy. Back in November 2021, there was a huge hike in crypto prices, with popular cryptocurrency Bitcoin ascending to its highest price ever. However, this year cryptos have declined considerably. For example, recent data shows that Bitcoin is down by approximately 38 per cent, Doge Coin is down by 89 per cent and Ethereum is down by 52 per cent.

UK consumers seeking expert investment advice in Chester often consult wealth managers. Able to offer an unbiased opinion of investment opportunities, from stocks and funds to property and digital assets, wealth managers can explain the potential risk and returns involved to those using their services.

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