Less than half (47 per cent) of cryptocurrency holders in the UK have a pension, whilst nearly a quarter (23 per cent) do not have any traditional savings or investments, research from AJ Bell has found.

The survey also found that 58 per cent of crypto investors don’t have an ISA, a further 50 per cent don’t have a savings account, and 83 per cent don’t have an investment portfolio.

The findings have prompted concerns that a generation of savers are “leap-frogging” traditional savings and investments by jumping “straight into the deep end” of cryptocurrencies.

In addition to this, AJ Bell financial analyst, Laith Khalaf, emphasised that there seems to be a “significant misunderstanding” of the risks involved with cryptocurrency investing and the potential long-term returns.

He stated: “There are a number of concerning findings from our research. Not only are many consumers buying cryptocurrencies without having an ISA, pension, or savings account in place, there also seems to be a significant misunderstanding of the risks involved.

“Thirty per cent of cryptocurrency investors are not willing to lose any of the money they’ve invested, which suggests they lack an appreciation of the potential downside of their investment.

“Only one in four cryptocurrency investors would be willing to lose 75 per cent or more of their investment, which is not beyond the bounds of possibility, given the volatility of the asset class.”

He continued: “The unpredictability of the future of cryptocurrencies means putting money into Bitcoin is more speculation than investment.

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