Although cryptocurrencies are now the second most popular investment, too many holders are completely unaware of the dangers they may be putting themselves in.
A recent survey found that a quarter of investors had crypto in their portfolio yet only a fifth believed such an investment was ‘risky’.
There has been a growth in retail investing since the pandemic, which has driven a change in investment patterns and fuelled changes to the mix of product types being traded.
The prevalence of social media and other digital channels to spread information and to add diversity to trading platforms has also had an impact on the way that investors behave.
44% of retail investors said that they held cryptocurrency. This makes it second only to Australian shares, where 73% of those surveyed said they held these.
Interestingly, a quarter of those who hold crypto say that this is their only investment.
At Glance Consultants, we keep up to date with current cryptocurrency news and regulatory changes and are keenly aware of the risks, and potential gains, involved with cryptocurrency investments.
We are able to advise our clients who have invested in cryptocurrency what their tax obligations are and to work out a plan with them to ensure that they are making the most sound investment decisions from a tax perspective.
There is currently limited protection for crypto-assets even as they have become a widely mainstream investment source and receive copious amounts of media advertising and attention.
Over half of surveyed investors who own cryptocurrency shares are sitting in the 18-34 age bracket. Four out of ten investors were heavily reliant on influencers to gain relevant information about their cryptocurrency investments.
Much more clarity is required around cryptocurrency regulations, including adequate and reliable information regarding the risk factor of these potentially lucrative investments.
If you’d like to learn more about cryptocurrency and its tax and accounting implications please contact our team at Glance Consultants on 03 98859793 or at enquiries@glanceconsultants.
