While cryptocurrency is gaining popularity among Australians, the majority are still in it for the novelty

<p>While more Australians are trading cryptocurrencies, the majority still view it as a 'very dangerous' investment, which is why they dabble.</p> <p>Despite stories of early adopters amassing riches through cryptocurrency trading, the majority of Australians who invest in the digital currency do so for the sake of entertainment.</p> <p>According to a survey conducted late last year by consumer group Choosi, about one in ten Australians are currently dabbling in bitcoin.</p> <p>However, the majority stated that they did it for "joy and excitement."</p> <p>Boredom from Covid may possibly have had a role, as 60% of Australians who trade cryptocurrency did so within the last year.</p> <p>It is also significantly more popular among younger generations than it is among older generations, and males are three times as likely as females to be previously invested.</p> <p>According to the report, 19% of Gen Y are involved, compared to 6% of Gen X and 4% of Baby Boomers.</p> <p>In general, 60% of Australians believe cryptocurrency is a "highly dangerous" investment, while 51% believe there is a lack of transparency and regulatory responsibility.</p> <p>Others are more concerned with the prospective benefits, with 46% saying their investments offer long-term growth chances and 32% citing short-term profits.</p> <p>Additionally, privacy of transactions (21%) and faith in crypto over traditional financial assets (16%) were prominent reasons.</p> <p>Meanwhile, those of us who are still unfamiliar with cryptocurrencies are not alone — even among those who have invested money in it.</p> <p>Approximately 38% of cryptocurrency investors claimed to having little or no understanding of how it all works.</p> <p>"It is troubling that many investors do not completely understand the investments they are making and lack the risk tolerance necessary to invest in such turbulent markets," said Whitely Bradford, a financial literacy specialist at Griffith University.</p> <p>"Cryptocurrency is a highly speculative asset class, and