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

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Friends influence and fear of missing out (FOMO) were some of the reasons investors bought cryptocurrencies for the first time in 2022, according to a U.S. financial regulator study.

Published The survey, conducted in late April by the U.S. Financial Industry Regulatory Agency (FINRA) Investor Education Foundation, found that a majority (31%) of new crypto investors said “a friend’s I see that you mentioned “suggestions”.

According to FINRA, this potentially indicates that there is a “social component to cryptocurrency investments that is not evident in equity or fixed income investments,” compared to just 8% of first-time equity or fixed income investors. increase.

However, similar to equity and fixed income investors, being able to “start small” was the second-largest reason for entering the cryptocurrency market with 24%.

Meanwhile, around 10% of respondents said the fear of missing out on “potentially lucrative investment opportunities” (FOMO) led them to buy cryptocurrencies for the first time, according to the survey.

The survey also found that 48% of cryptocurrency investors said they got information about the digital asset market from a friend, family member or work colleague. Equity investors were 35% for him and 25% for social media.

The study found that new crypto investors are, on average, slightly younger (age 37) and have no college education (28.5% have 4 year-long degree).

Related: Cryptocurrency Becomes Second Most Popular Asset Class Owned by Young Women: eToro Survey

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

Digital asset investors scored 26.6% on a five-item quiz asking about how cryptocurrencies are issued. transfer to US dollars; how to be taxed; and how the transaction can be “susceptible” to fraud.

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

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