Despite the well-known volatility of cryptocurrencies, a recent survey found that nearly one in three Canadians—31%—plan to buy crypto assets in the next 12 months, and 11% said they definitely will. The survey, conducted by the Ontario Securities Commission, also reported that about 13% of Canadians currently hold digital assets such as cryptocurrencies (for example, Bitcoin or Ethereum) or non-fungible tokens (NFTs). While current holders remain a minority, the intent to purchase is more than double the present ownership rate. Younger Canadians (ages 18 to 34), men, households with incomes of $100,000 or more, and people who had seen crypto advertising were more likely to say they planned to buy.
Many current crypto owners first learned about digital assets from friends, family or colleagues, followed by social media influencers and specialists in blockchain technology—the decentralized ledgers that record and verify crypto transactions. Institutional and traditional financial firms have begun to adopt crypto exposure, often indirectly, such as through exchange-traded funds (ETFs) that include Bitcoin or broader crypto-related investments. Some large institutional investors have also taken direct positions or allocated small portions of portfolios to cryptocurrency-related products.
The online survey was fielded between April 26 and May 10, 2022. It included 2,185 respondents from the general population plus an additional 175 crypto owners, to ensure at least 500 crypto owners participated in total.
What are Canadian crypto investors buying?
Among the 13% of Canadians who reported owning crypto assets, 6% hold individual crypto assets, 6% own both individual assets and crypto funds, and 2% own crypto funds only. Crypto funds are securities—like ETFs—that either invest exclusively in cryptocurrencies or blockchain-related companies, or that combine crypto exposure with traditional stocks and bonds. Crypto assets themselves include Bitcoin, Ethereum, stablecoins, other altcoins and NFTs.
Do Canadians understand crypto?
The report emphasized that rapid innovation in the crypto sector makes it important to better understand Canadians’ experiences with trading platforms, advertising, and decentralized finance. Overall, the survey found that Canadians’ practical knowledge of crypto assets was low. Respondents completed a six-question quiz covering practical, legal and regulatory aspects of crypto, and the average score was just 37%. Only 1% of respondents answered all six questions correctly, and fewer than 25% answered four or more correctly.
Current crypto owners scored significantly higher on the knowledge questions, averaging 61% correct, and they also performed better on several general financial literacy questions compared with the general population sample.
How’s your crypto literacy?
Try these same questions from the survey. See the answers at the bottom of the page.
- What is the definition of crypto assets?
a. Crypto assets are a body of private information about an individual, organization or electronic device that exists online.
b. Crypto assets are purely digital assets that use cryptography—writing or solving codes—peer-to-peer networks, and distributed ledger technology (such as blockchain) to create, verify and secure transactions. They can be transferred, stored or traded electronically.
c. Crypto assets are a dedicated website or application which enable users to communicate with each other by posting information, messages or images and thereby create a digital currency of value.
d. I don’t know.
e. I’ve never heard of crypto. - True or false: Crypto assets allow for direct transactions between two parties, without a third party involved.
- True or false: Crypto asset transactions take place instantaneously.
- True or false: All crypto asset transactions are recorded on a distributed ledger that is publicly accessible.
- True or false: Crypto assets are secure from cyberattacks.
- True or false: Crypto assets are backed by the government.
Who’s buying crypto, and how are they getting it?
Demographically, crypto asset and crypto fund owners were more likely to be men aged 25 to 44, to have children, to be employed full time, and to have higher educational attainment. Most holders were already investors—87%—and a large share managed investments themselves (44% were self-directed). Those who owned only crypto funds were more likely to use online investment services or robo-advisors.
Almost half of crypto owners (48%) described their approach as aggressive, compared with 56% of the general population sample who said they were conservative investors. Crypto owners were also more likely to report receiving promotional texts and offers and to remember seeing advertisements for crypto platforms.
When asked how they obtained crypto, 52% of owners said they used trading platforms or apps such as popular Canadian and international services. About 19% received crypto from friends, family or colleagues, and others acquired crypto through mining, staking, or by receiving it without payment.
Why do people buy crypto?
The survey identified the top motivations for purchasing crypto assets or funds:
- Belief in the underlying technology and its long-term potential
- Speculation or the hope of a high-return gamble
- Desire to grow savings faster than traditional accounts
- Intention to diversify an investment portfolio
Those who had never owned crypto cited reasons for not buying, including a lack of understanding about the asset, concerns about fraud and scams, viewing crypto as too risky or akin to gambling, and worries about price volatility.
Beware the risks of crypto investing
Crypto can offer substantial upside, but it is also a high-risk, high-volatility, speculative asset class. It carries a broad range of additional risks, including technological vulnerabilities, uncertain regulatory frameworks, limited liquidity for some assets, and the potential for fraud or scams. Given these risks, investor caution is warranted.
Investors are advised to conduct thorough research, evaluate whether crypto fits their long-term financial goals, and avoid investing more than they can afford to lose. Sound financial planning and risk management remain critical when considering exposure to cryptocurrencies or related funds.
Quiz Answers
- Crypto assets are purely digital assets that use cryptography—writing or solving codes—peer-to-peer networks, and distributed ledger technology (such as blockchain) to create, verify and secure transactions. They can be transferred, stored or traded electronically.
- True
- False
- True
- False
- False
Go back to the quiz.
Further reading on crypto
- Watch: Is crypto a good investment?
- Which cryptocurrency might suit different investor profiles?
- Common crypto scams and how to avoid them
- Guidance on how long to hold a cryptocurrency investment