May 01, 2023
Friends Influence Crypto Newbies Entering Market
A survey by the United States Financial Industry Regulatory Authority (FINRA) Investor Education Foundation has revealed that a large proportion of new crypto investors have entered the market due to influence from friends and fear of missing out (FOMO).
The survey, which was published in late April, found that 31% of new cryptocurrency investors cited “friend suggestion” as the primary reason for their foray into crypto, compared to only 8% for first-time equities or bond investors.
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.
The survey also found that around 10% of respondents indicated that FOMO on a “potentially lucrative investment opportunity” led to them buying crypto for the first time.
It was also found that 48% of crypto investors 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%.
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).
The survey also revealed 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%.
As the crypto space continues to expand, more and more people are turning to crypto as an investment option. With the influx of new investors, it is important to understand the motivations behind why they are entering the market.
The survey results indicate that many new investors are entering the market due to influence from friends and FOMO. This is in contrast to traditional stock investors, who are more likely to be motivated by small investments and the potential for lucrative returns.
It is also clear that many crypto newbies are learning about the market from social media and friends, rather than from more traditional sources such as a financial advisor.
In order to ensure that new investors are well informed, it is important that they seek out reliable sources of information and advice. This could include seeking out a web3 agency or NFT marketing agency, or even engaging in Twitter NFT marketing to gain a better understanding of the crypto market.
Furthermore, it is important to remember that investing in crypto carries financial risks, and investors should be aware of these risks before entering the market.
For those looking to make money from crypto, it is important to understand the market and to have a good understanding of the various strategies available, such as selling NFTs or promoting NFTs.
By understanding the motivations behind why people are entering the crypto market, as well as the strategies available to make money from crypto, investors will be better equipped to navigate the crypto space and make informed decisions.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
