Summary

The web content presents a survey analysis on the prevalence of cryptocurrency investments among Reddit investors from Europe, Belgium, and the UK, revealing a significantly higher rate of crypto exposure compared to the general population, with varying degrees of portfolio allocation.

Abstract

The article discusses the results of a poll conducted among Reddit investors, including those from European, Belgian, and UK FIRE (Financial Independence, Retire Early) communities, to gauge the level of cryptocurrency exposure. It reveals that 69% of these investors hold some form of cryptocurrency, which is approximately seven times the rate of the general population. The survey also delves into the allocation of crypto within investors' portfolios, indicating that while a substantial portion (31%) has no crypto exposure, significant percentages hold between 1–5% (28%) and 6–15% (16%) of their wealth in crypto. A smaller yet notable group of investors (10%) has more than 50% of their portfolio in cryptocurrencies. The article further explores the debate on ideal crypto portfolio allocation, suggesting that mainstream advice leans towards a 1–5% allocation to balance potential growth with risk management. The article concludes with humorous responses from the subreddits and a disclaimer about the reliability of the poll results.

Opinions

A majority of Reddit FIRE investors are involved in cryptocurrency investments, indicating a higher affinity for crypto assets compared to the average population.
The optimal crypto allocation is a subject of debate, with mainstream financial advice suggesting a conservative 1–5% of one's portfolio to be invested in crypto.
Some investors completely avoid crypto, considering it a form of gambling, especially with retirement funds.
There is a recognition that crypto could be a significant growth area, but also a consensus that it carries substantial risk, thus the advice to avoid extreme positions (0% or 100% crypto allocation).
The article highlights that while some investors are skeptical, viewing crypto as a potential pyramid scheme, others have embraced it and attribute their financial success to crypto investments.
The poll results are acknowledged to be indicative rather than definitive, as they may not accurately reflect true investment behaviors and may be based on different interpretations of wealth (investments vs. total wealth).

I asked European, Belgian and UK Investors if they hold Crypto

Ever wondered what percentage of Reddit investors have exposure to crypto and how this compares to the general population?

Percentage of People With Exposure to Crypto

Poll results

Comments

69% of Reddit FIRE (= Financial Independence Retire Early) investors hold at least some crypto
Investors on Reddit are roughly 7 times more likely to hold crypto than the general population
Results are similar for Europe, Belgium and the UK

Let’s now have a look at how much of their wealth Redditors have in crypto.

Crypto Allocation by Reddit Investors

Poll results

Comments

The biggest group (31% of people) of Redditors has 0% exposure to crypto
The 2nd biggest group (28% of people) holds 1–5% of their wealth in crypto, while the 3rd largest group (16% of people) holds 6–15% of their wealth in crypto
For approximately 10% of investors, crypto makes up more than 50% of their total portfolio

How much crypto should I hold?

There is no right answer to this. A lot will depend on your tolerance for volatility. However, portfolio optimization almost never happens at the extremes. Therefore, it’s safe to exclude 2 answers:

The current mainstream “textbook answer” is to hold 1–5% of your portfolio in crypto. For example, in a 2021 TIME article and 2022 MarketWatch article, wealth advisors suggested 1–5% as ideal crypto exposure. A similar recommendation was made in a 2019 Yale study.

Keeping a small percentage of your wealth in crypto ensures that you don’t miss out completely in case the crypto market continues to grow (+875% over the last 2 years), while you also have limited downside risk.

Funniest poll answers in each subreddit

EuropeFIRE

“0%, I don’t gamble with my retirement money. Casinos are more fun than sitting on your ass at home with crypto.”
“Why you stopped at >50% with poll options?”

BEFire

“As long as my Delhaize around the corner doesn’t accept crypto I’m not touching it with a ten foot pole.”
“I am enjoying the biggest Ponzi according to this sub since 2019. Please continue stating why it’s a pyramid scheme, 0 value and that I am a fucking retard. All I know is that I will achieve FIRE in sub 6 years and that’s my worst forecast.”

FIREUK

“Crypto will go down as the largest pyramid scheme in history.”
“Been saying that for 12 years and counting.”

Disclaimer

Any Reddit user will know that the poll results are likely not reliable and therefore only give an indication of true behavior. Additionally, some users might have calculated their percentage based on investments only, while others looked at their total wealth. Total poll participants:

EuropeFIRE: 1,679
BEFire: 840
FIREUK: 1,938

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