39 per cent of UK cryptocurrency investors have sold some of their holdings in the past 12 months to capitalise on their gains, research from money app Ziglu has found.
Just over one in five (22 per cent) sold up to £500 of their cryptocurrency holdings, eight per cent sold between £500 and £1,000 and nine per cent sold more than £1,000.
Over half (55 per cent) said that they bought more cryptocurrencies after selling their holdings, while only 36 per cent said they did not purchase any more.
Ziglu said it saw the effect of the drop in cryptocurrency valuations between mid-May and the start of a recovery during the last week of July.
During this period, 35 per cent of cryptocurrency exchange transactions on the Ziglu app were people selling cryptocurrencies. Meanwhile, 65 per cent of people were purchasing cryptocurrencies, with Ziglu putting this down to many investors seeing the recent fall in valuations as a buying opportunity.
“Cryptocurrencies can be volatile, and as with any investment it is often sensible to realise some gains – even if this is a matter of holding the profit as cash ready to reinvest,” said Mark Hipperson, founder and chief executive of Ziglu.
“This is particularly relevant when it comes to cryptocurrencies, as many have seen huge increases in their valuations over the past year or so.”
In July, Ziglu found that one in 10 UK adults currently own cryptocurrencies and 11 per cent are considering buying some for the first time over the next 12 months. Its research also found that 24 per cent of crypto investors have spent £100 or less.