More than 21% of investors bought cryptocurrency on credit

DebtHammer surveyed more than 1,500 Americans to learn about their cryptocurrency investing habits. As we know, credit is very popular in the U.S. This applied to crypto investing as well.

More than 21% of respondents said they have taken out a loan to buy coins. These are mostly loans of 500 to 1,000. At first glance, such amounts seem relatively small. But DebtHammer clarifies that many loans have an actual annual rate of up to 400%.

What did such loans lead to? Nineteen percent of respondents had trouble paying their utility bills, and 15 percent had trouble renting their homes.

Where did the loans go?

Most Americans took out loans to buy bitcoin (54%). In second place, oddly enough, is Dogecoin. This meme coin is more popular in the U.S. than the Ethereum. And largely thanks to the love of Ilon Musk.

Credit for the purchase of ETH was taken by 30% of respondents. Unfortunately, more than 6% of the credits went to buy Luna tokens.

Participants were asked what prompted them to take out a loan to buy crypto. Nearly 23% did so because tokens were cheaper. About 15% considered such a purchase a good long-term investment. Moreover, 60% ended up losing out on such investments. More than a third of them lost up to $1,000 and every fourth lost more than this amount. Every tenth respondent lost more than $50,000.