Cryptocurrencies continue to capture public attention, with growing ownership, heightened media coverage, and increasing involvement from institutional investors. This research provides a comprehensive look into consumer behavior, awareness, and attitudes toward cryptoassets in the UK as of early 2021. Based on nationally representative data and in-depth analysis of crypto users, the findings reveal evolving trends in adoption, motivation, and risk perception—offering valuable insights for regulators, investors, and financial professionals.
The study builds on previous research conducted in 2019 and 2020, tracking shifts in market dynamics and consumer sentiment amid rising cryptocurrency prices and expanding market infrastructure. While regulatory oversight remains limited for most crypto tokens, understanding consumer engagement is crucial to identifying potential risks and benefits.
Key Findings at a Glance
Rising Awareness, Declining Understanding
Public awareness of cryptocurrencies has surged—78% of UK adults now report having heard of crypto, up from 73% in 2020. However, this increased visibility hasn’t translated into deeper comprehension. Only 71% of those aware could correctly define cryptocurrency, a notable decline from prior years.
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This gap suggests a growing number of individuals may be entering the market without fully grasping the technology or risks involved.
Ownership on the Rise
An estimated 2.3 million UK adults now hold cryptocurrencies—an increase from 1.9 million in 2020. This represents 4.4% of the adult population, with median holdings rising from £260 to £300 due to strong price performance across major assets like Bitcoin and Ethereum.
Despite growth, the typical crypto owner remains largely unchanged: predominantly male (78%), over 35 years old, and from higher socioeconomic (AB) groups.
Shifting Motivations: From Gamble to Investment
Attitudes are shifting. Fewer users view crypto as a gamble—38% cited this motive in 2021, down from 47% in 2020. Instead, more are treating it as a legitimate investment: half of users plan to buy more, and 48% believe they will eventually profit.
There’s also growing confidence in unregulated markets, though only 35% said regulation would make them more likely to invest.
Daily Engagement on the Rise
Crypto holders are becoming more active. The share checking their balances daily has more than doubled—from 13% to 29%—indicating heightened emotional and financial engagement.
Meanwhile, 57% have never sold any of their holdings, signaling long-term conviction among many investors.
Market Context and Evolution
The crypto landscape has transformed since 2019. What began as a niche interest has evolved into a mainstream financial phenomenon, driven by:
- Soaring prices (Bitcoin reached $60,000 in early 2021)
- Institutional adoption (e.g., corporate treasuries, investment funds)
- Expansion of financial services into crypto products
- Regulatory developments, including anti-money laundering (AML) supervision by the FCA
These forces have contributed to broader awareness and acceptance, even as risks remain significant.
Research Methodology
Fieldwork was conducted from 5 to 24 January 2021 using an online survey administered via YouGov’s research panel.
Two sample groups were analyzed:
- Nationally Representative Sample (Nat Rep): 2,568 adults; assessed general awareness and attitudes.
- Boost Sample: 994 current or former crypto users; provided deeper behavioral insights.
Combined, these yielded 1,140 crypto user responses, enabling robust analysis of ownership patterns, motivations, and risk factors.
In-Depth Analysis
Public Awareness Trends
While awareness has climbed steadily—from 42% in 2019 to 78% in 2021—understanding has declined. This disconnect raises concerns about informed decision-making.
Bitcoin dominates recognition: 82% of those aware identify Bitcoin, far ahead of other tokens. Notably, many associate crypto solely with Bitcoin, suggesting limited exposure to broader market diversity.
Advertising plays a minor role in awareness. Most respondents first heard about crypto through traditional media (27%) or word-of-mouth, not ads. However, 50% said ads changed their attitude, though only 5% were encouraged to buy because of them.
Ownership Profile and Risk Indicators
Despite growing adoption, red flags exist:
- 14% funded purchases through borrowing (credit cards, overdrafts, loans)
- 5% believed they had regulatory protection, despite most crypto being unregulated
- 5% lacked basic crypto knowledge yet believed they were protected
These overlapping risk factors suggest a subset of users may be vulnerable to financial harm.
Bitcoin owners tend to be more knowledgeable: 96% correctly defined cryptocurrency, compared to 81% of non-Bitcoin holders. They’re also less influenced by ads and more confident in long-term value.
Median holdings stand at £300, but reporting is inconsistent—nearly half declined to disclose values. The highest reported holding was £7 million, reflecting extreme concentration at the top end.
Motivation and Behavioral Shifts
The primary reasons for buying crypto include:
- 38%: As a speculative gamble
- 30%: As part of a diversified portfolio
- 19%: As an alternative to traditional investments
Notably, belief in crypto’s superiority over mainstream finance has grown: 32% agree, up from 26%.
Personal networks remain powerful: 34% of users first learned about crypto from friends or family, compared to just 16% of non-users. Online forums and independent research are also key information sources.
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Engagement and Usage Patterns
Most users (78%) fund purchases with disposable income. A growing number (17%) reinvest prior gains—a sign of compounding confidence.
Exchanges remain the dominant access point: 75% use centralized platforms like Binance or Coinbase. Only 4% use UK-based exchanges, highlighting reliance on international providers.
Storage methods vary:
- 59% keep crypto on exchanges
- 24% use digital wallets
- 22% use hardware wallets
Daily monitoring has surged—29% check balances daily, possibly due to volatility or improved app accessibility.
Use cases extend beyond investment:
- 29% trade between cryptos
- 27% buy goods/services
- 10% purchase financial products
Yet, 57% have never sold, indicating a "buy-and-hold" mindset prevails.
Looking Ahead: Future Intentions and Stablecoins
Investment Outlook
Optimism is high:
- 47% plan to buy more
- 53% expect positive experiences to drive future purchases
- 48% believe they’ll eventually profit
Long-term holding is common: 49% intend to hold for 5+ years, while only 16% plan to sell within three months.
Many link future buying to income growth: 57% say they’d invest more with higher disposable income.
Stablecoins: Low Adoption, Lower Understanding
Stablecoins—a class of crypto pegged to fiat currencies—show limited traction:
- Only 33% have heard of Tether (USDT)
- Just 6% own any stablecoin
- 87% have never purchased one
Understanding lags further: only 36% correctly defined stablecoins, compared to 90% for general crypto.
Barriers include:
- Lack of knowledge (45%)
- Unclear benefits (46%)
- No perceived need (many respondents)
Among owners, stablecoins are primarily used as a trading tool (64% store value on exchanges) rather than for payments or savings.
Frequently Asked Questions (FAQ)
What percentage of UK adults own cryptocurrency?
Approximately 4.4%, or around 2.3 million people, currently hold cryptocurrency. This is up from 3.9% in 2020.
Are people using crypto for everyday purchases?
Yes—27% of users have used cryptocurrency to buy goods or services, indicating real-world utility beyond speculative investment.
Is cryptocurrency ownership risky due to lack of regulation?
Yes. Most cryptocurrencies are outside the regulatory perimeter, meaning investors have no protection if things go wrong. Despite this, many users remain confident in the market’s potential.
Why are more people buying crypto despite the risks?
Strong price performance, peer influence, and growing belief in crypto as a legitimate asset class are driving adoption. Many see it as a hedge against inflation or a superior alternative to traditional investments.
How does age affect crypto ownership?
Ownership is skewed toward those over 35, but younger adopters (25–44) are increasingly entering the market—often borrowing funds and showing higher regret rates.
What’s the biggest misconception among crypto users?
A significant number—5%—believe they have regulatory protection, which is not the case for most crypto assets. This highlights ongoing education gaps.
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