Skip to main content

Friends and FOMO pushed newbie investors to buy crypto in 2022 — Survey

A survey from the Financial Industry Regulatory Authority (FINRA) suggests that new crypto investors tended to be swayed by suggestions from friends, compared to equities or bond investors.

Influence from friends and the fear of missing out (FOMO) were some of the reasons investors bought crypto for the first time in 2022, according to a survey by a United States financial regulator.

Published by the United States Financial Industry Regulatory Authority (FINRA) Investor Education Foundation in late April, the survey found that a large portion (31%) of new cryptocurrency investors cited "friend suggestion" as the primary reason for their foray into crypto. 

This is compared to only 8% for first-time equities or bond investors, potentially indicating that there is "a social element to cryptocurrency investing not evident in equities or bond investing," according to FINRA.

However, the ability to “start with small amounts” was the second biggest reason for making a move into the crypto market at 24%, similar to equities and bond investors. 

Friends are having a significant influence on crypto newbies entering the market. Source: FINRA

Meanwhile, around 10% of respondents indicated a fear of missing out (FOMO) on a “potentially lucrative investment opportunity” led to them buying crypto for the first time, according to the survey.

The survey also found that 48% of crypto investors said they sourced information about the digital asset market from friends, family or work colleagues — compared to 35% for stock investors — followed by social media at 25%.

Many crypto newbies are learning about the crypto market from social media. Source: FINRA

The survey also found that newer crypto investors were slighter younger on average (37 years old) and less college-educated (28.5% completed a four-year degree) compared to stock investors (43 years old and 46.3% with college degrees).

Related: Crypto becomes second most widely-owned asset class for young women: eToro survey

Interestingly, the study found that digital asset owners didn’t know as much about cryptocurrencies as they initially thought.

Digital asset investors scored 26.6% on a five-item quiz that asked questions about how a cryptocurrency is issued; transferred into U.S. dollars; how it is taxed; and how transactions may be “susceptible" to fraud.

The 465 participants surveyed on Sept. 9 and 29 were randomly selected from U.S. households. The margin of error was 6.75%. The 2022 survey was part of a follow up survey from 2020.

Magazine: Magazine: Crypto winter can take a toll on hodlers’ mental health



from https://ift.tt/jPQiFHz
https://ift.tt/OkMKmYv
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl...
Post a Comment
Read more

FTX hacker reportedly transfers a portion of stolen funds to OKX after using Bitcoin mixer

On-chain activity suggests that the hacker has sent at least 225 BTC (4.5 million) to OKX so far. Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money.  A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hackers have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX so far.  1/ Myself and @bax1337 spent this past weekend looking into the FTX attacker’s deposits to ChipMixer. It appears they’ve likely been transferring a portion of the stolen FTX funds to OKX after withdrawing from CM So far we’ve accounted for at least $4.1m (255 BTC) sent to OKX pic.twitter.com/C46JZWtktn — ZachXBT (@zachxbt) November 29, 2022 According to ZachXBT, the FTX h...
Post a Comment
Read more

2 metrics signal the $1T crypto market cap support likely won’t hold

Despite the 8.5% weekly rally in cryptocurrencies, the lack of stablecoin premiums in Asia and futures markets activity shows buyers’ lack of confidence. Cryptocurrencies broke the $1 trillion market capitalization resistance on Oct. 26, which had been holding strong for the previous 41 days. Despite Bitcoin’s ( BTC ) modest 5.5% weekly gains, the aggregate value of 20,000 listed tokens increased by 8.5% between Oct. 24 and 31. Total crypto market cap, USD (in billions). Source: TradingView The cryptocurrency market was positively impacted by a 6.3% weekly rally in the Russell 2000 mid-capitalization stock market index. Some encouraging news accompanied the positive tailwinds from traditional markets. For instance,  55,000 BTC was withdrawn from Binance on Oct. 26, a record high. Typically, analysts consider the reduced number of coins deposited on exchanges a bullish indicator, as the immediate selling pressure eases. Moreover, exchange and wallet provider Blockchain.com ...
Post a Comment
Read more