The UK is one of the largest financial markets in the world. Today, the Great British Pound is one of the most heavily traded currencies against the US Dollar and is also one of the strongest currencies. Additionally, UK traders are some of the most active traders in the cryptocurrency space.
Due to the popularity of trading in this country, a lot of forex brokers have moved to serve the hundreds of thousands of traders in the UK. While the market is saturated by hundreds of brokers, the ones that offer unique features stand out. For example, UK brokers that have fast withdrawals enjoy a favourably large client base as they release funds fast to clients.
Let’s take a look at the popularity of crypto and forex investing in the UK.
The Current Trend of Crypto and Forex Investing in the UK
According to a Financial Conduct Authority (FCA) study, in 2021, around 2.3 million people owned crypto-assets, up from approximately 1.9 million in 2020. The UK regulator also discovered that opinions have evolved as cryptocurrencies appear to have grown more mainstream.
Fewer crypto users see them as a gamble (38%, down from 47%), and more see them as an alternative or supplement to traditional assets, with half planning to invest more.
According to some recent data from an FCA report, it is estimated adult crypto ownership reached 4.97 million, or 9% of the adult population, in August 2022, substantially increasing from 2021 to 2022. Comparing this to the 2.3 million for 2021 demonstrates the increased interest in crypto.
A report done by the Bank of England showed the average daily volume of Forex trades surged by 49% to US$3.6 trillion between April 2016 and April 2019. Now It’s estimated that the UK has about 400,000 online forex traders.
Evidently, the popularity of crypto and forex investing in the UK is on a gradually increasing trajectory and there are a couple of reasons for this. Let’s look at some of the factors causing the increase in the popularity of crypto and forex investing in the UK.
Adoption of Technology and Digital Media
The UK is a technologically advanced nation with a large internet-adopted population. Through a variety of platforms and brokers, technology has made it simpler for users to access and trade cryptocurrencies and forex online.
With the rise of the digital age, the market has also seen a huge tech-driven change. Due to online forex brokers, investors can now plan, execute, and manage their orders through a single interface. They can also automate their trades to better manage their timings and strategies.
Publicity and the Media
The forex market has been part of regular news scheduling for decades now. More and more people are paying attention to market movements and how world events affect the value of different currencies. Similarly, the rise of cryptocurrencies, particularly Bitcoin, has sparked widespread media coverage and popular curiosity. This has grabbed people’s interest and motivated them to learn more about cryptocurrency trading. Companies can use social media to reach out to their communities and share critical information.
Acceptance of Cryptocurrency and Forex
Forex trading has a long history and has had time to build acceptance among the masses. Moreover, people trust Forex because it is regulated which has led to a rise in the number of people who are trading Forex. In contrast, cryptocurrencies have not been around for long and people are still divided on where they stand.
However, some businesses in the United Kingdom have begun to accept cryptocurrencies as payment for products and services. This has contributed to the legitimacy and adoption of digital assets. For example, gift cards may be purchased through cryptocurrency platforms such as BitPay and CoinGate and used to shop in-store and online at various UK retailers such as ASDA, Boohoo, and Clarks.
Historically, quick price increases in certain cryptocurrencies, such as Bitcoin, have fueled FOMO (Fear of Missing Out), luring more investors hoping to profit from possible price increases. Fear of Missing Out is a concept greatly influenced by psychology.
Most people who are affected by this occurrence are newbies and inexperienced traders. Well, it is not only the price changes that drive people to invest. People also learn from friends and families about new markets and desire to invest.
The rise in the popularity of crypto and forex investing in the UK is no secret. A combination of many factors has led to more and more people investing in both the forex and the cryptocurrency markets.
While the popularity gradually increases, it is crucial to highlight that investing in cryptocurrencies and Forex carries considerable risks. These can include excessive volatility, regulatory changes, and the possibility of financial losses. The Financial Conduct Authority (FCA), the UK’s regulatory body, has issued cautions regarding the dangers of investing in these assets.
If you’re thinking of investing in cryptocurrencies or forex in the UK, you should do your homework, understand the dangers, and consider receiving advice from a certified financial advisor.