Cryptocurrency traders — according to the findings of a new study commissioned by the United Kingdom’s Financial Conduct Authority — are a young, diverse bunch who are not always level-headed in their investment choices.
The study, conducted by the international strategy consulting firm BritainThinks between mid-August 2020 and late January, was based on a sample of 517 “self-directed investors” — i.e., those who make investment decisions on their own behalf and don’t seek professional financial advice.
The findings indicate that 38% of those surveyed don’t have a functional reason for their investment choices, giving priority instead to emotional factors such as the thrill of trading and enjoying a sense of ownership in the companies they invest in, which sustains a perceived social status.
Challenge, competition and novelty, for these investors, eclipse more sober, long-term motivations, such as putting their cash holdings to more efficient, gainful ends. While most respondents claimed they had high confidence and sufficient knowledge about their field of investment, many reportedly lacked awareness of or belief in the risks they are courting.
Over 40%Title: Forex and crypto investors seek thrills and social status, says FCA study
Sourced From: cointelegraph.com/news/forex-and-crypto-investors-seek-thrills-and-social-status-says-fca-study
Published Date: Tue, 23 Mar 2021 12:37:28 +0000