While bitcoin remains the go-to crypto investment as it is the best-known, there are currently more than 2,000 cryptoassets to choose from.
Their prices are typically set according to supply and demand.
Other coins such as Ripple, Ethereum, Litecoin and Bitcoin Cash among others, have also gained popularity with the investment community.
So who is investing in cryptocurrencies?
Across Europe, London has the highest concentration of cryptoholders, according to research by Global Web Index, in partnership with Bitpanda.
The study found that the level of cryptocurrency is related to:
- The youth of the market
- The share who work in engineering, financial services or banking
- The proportion of people who fall into the highest income group
Compared to the average internet user in Europe, cryptocurrency holders are more likely to be:
- High-income males working in European Financial centres in IT, engineering or finance
- Educated to a postgraduate level
- Under 35
- A full-time worker or freelancer
However, this stereotype is being challenged by increasing diversity as one in five cryptocurrency holders are women, and 40 per cent are over the age of 35.
There is clearly growing demand and interest about cryptocurrency investments.
Source: Global Web Index / Bitpanda
Simon Peters from cryptocurrency trading firm Etoro says: “Based on our own data, investors come from a range of backgrounds, rather than there being any one single group or investor-type.
"For us, perhaps the most interesting point about cryptoinvesting is how it’s attracted lots of younger or even first-time investors. These are people who would never have considered the idea of ‘investing’ before but have begun to learn about this world through crypto. The next task is to get them investing in other assets like stocks and bonds."
Additionally, cryptoinvesting is also popular with family offices and institutional investors.
Adviser clients are also very much part of those interested in cryptocurrencies.
According to an Etoro study last year, more than three in five (63 per cent) financial advisers in the UK have been asked about cryptoassets by their clients.
Despite this, most advisers are not yet in a position to provide information or guidance to their clients in response.
Mr Peters says: “The history of investment, and development of the crypto industry, however, suggest this may not be the case in another decade’s time.
“We are confident that in the future crypto will form part of a diversified portfolio for clients with an appropriate risk appetite across the wealth spectrum.”
Richard Byworth, chief executive of cryptocurrency and blockchain firm Diginex adds: "Once you touch cryptocurrency and start to look particularly at bitcoin and at the attributes of bitcoin the more you begin to understand this is interesting as an asset class.
"There's no question that pretty much every central bank in the world is devaluing their currency. The victims of this are people who are sat in cash of that nation state."
This is the trigger many experts say has led to the popularity of cyptocurrencies.