The influence of friends and the fear of missing out (FOMO) were some of the reasons why investors bought cryptocurrencies for the first time in 2022, according to a survey conducted by a US financial regulator.
Published by the US 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 main reason for their foray into the crypto space.
This compares to just 8% of new equity or fixed income investors, which could indicate that there is “a social element to cryptocurrency investing that is not evident in equity or fixed income investing.”according to FINRA.
However, the possibility of “starting small” was the second most important reason to enter the cryptocurrency market, with 24%, similar to that of investors in equities and fixed income.
For his part, around 10% of respondents indicated that fear of missing out on a “potentially lucrative investment opportunity” led them to buy cryptocurrency for the first time, according to the survey.
The survey also revealed that 48% of crypto investors claimed to have obtained digital asset market information from friends, family or co-workers, compared to 35% of stock investorsfollowed by social networks, with 25%.
The survey also revealed that new cryptocurrency investors were, on average, slightly younger (37 years old) and less college educated (28.5% had a four-year degree) compared to stock investors, who were 43 years old on average and 46.3% have university studies.
Curiously, the study revealed that digital asset owners did not know as much about cryptocurrencies as they first thought.
Many digital asset investors scored 26.6% on a five-question quiz about how cryptocurrency is issued, transferred to US dollars, taxed, and how transactions can be “susceptible” to fraud.
The 465 participants surveyed between September 9 and 29 were randomly selected from US households. The margin of error was 6.75%. The 2022 survey was part of a 2020 follow-up survey.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.