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- A study conducted by Bybit and Toluna has found that the majority of crypto investors in the U.S. only conduct at most two hours of research before buying crypto.
- The results also showed that 30% more investors prioritize reputational factors as compared to technical factors when choosing a token project to support.
- When it comes to age groups, boomers spend 50% more time doing their own research and HODL for a longer time than the younger generations.
Despite the ongoing bear market and several crypto firm failures in 2022, a recent study on crypto investor behavior and literacy conducted by crypto exchange Bybit and research firm Toluna discovered that the majority of American investors conduct less than two hours of research before purchasing cryptocurrency.
“Our new Crypto Investment Literacy Report reveals the attitudes and behaviors of crypto investors, showing that they are passionate about the industry and in it for the long term. This report is also an important step in understanding the educational needs of the crypto investor community and how the industry can be improved to better serve them,” said Charmyn Ho, head of crypto insights at Bybit.
The research revealed that 64% of North American investors spend less than 2 hours or do not exercise the DYOR (do your own research) method at all before diving in and investing in a cryptocurrency—30% more investors prioritize reputational factors as compared to technical factors when choosing a token project to support.
Surprisingly, although crypto is more of a thing for younger generations, the study also found that the due diligence behaviors of Baby Boomers, currently aged 58–67, are generally 20% “savvier” than other generations, as they focus more on technical factors.
In fact, the boomers, as compared to younger generations, spend 50% more time conducting their own due diligence—34% of them spend a few days on DYOR.
Accordingly, Boomers, Gen X, and those from developed countries are more likely to HODL for longer, by 6 months at most, adding that Boomers and Gen X HODL more than Gen Z and Millennials. With this, ByBit noted that this may point “that youngsters perform more frequent and short-term trading compared to older generations.”
Moreover, the report also revealed investors are ready to scrutinize centralized crypto exchanges (CEXs) in greater depth, prizing CEX business practices 30% more than reputational factors.
Moreover, the report also revealed investors are ready to scrutinize centralized crypto exchanges (CEXs) in greater depth, prizing CEX business practices 30% more than reputational factors.
ByBit and Toluna also noted the following observations:
- 1 in 2 investors is undeterred by stricter regulations.
- 1 in 4 investors is willing to accept CEXes regulation for greater safety over their investments.
- 1 in 2 investors calls for more centralized control for wider Web3 adoption.
- CEXes’ score the highest on trust, 15% higher, over NFTs and DeFi. In fact, 3 in 5 DeFi believers diversify, placing their trust in CEXes too.
- 1 in 2 investors is undeterred by stricter regulations.
- 1 in 4 investors is willing to accept CEXes regulation for greater safety over their investments.
- 1 in 2 investors calls for more centralized control for wider Web3 adoption.
- CEXes’ score the highest on trust, 15% higher, over NFTs and DeFi. In fact, 3 in 5 DeFi believers diversify, placing their trust in CEXes too.
To summarize the report, Bybit’s analysts also included a 7-step checklist for all crypto investors interested in acquiring digital assets:
- Find Your Objective
- Find Your Investment Strategy
- Set Aside Funds for Investment
- #DYOR
- Deep Dive into Potential Projects
- Find Your Trading Platform
- Read Crypto Twitter
In a recent report from eToro, the social trading platform revealed that despite the crypto downturns last year, 69% of retail investors worldwide are still either positive or ambivalent about investing in the industry.
In 2022, according to CoinGecko’s 2022 Annual Crypto Industry Report, the total market value of the crypto industry plunged by 65% as compared to 2021.
This article is published on BitPinas: DYOR Pero Tinamad? Research Shows American Crypto Investors Only Spend Two Hours of Research When Buying Crypto
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.
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