Comprehending the Crypto-Curious: How Investors and Inexperienced Potential Investors Perceive and Practice Cryptocurrency Trading

Abstract

With the increasing popularity of cryptocurrency, many people are interested in cryptocurrency investments, but have so far hesitated. Many others have made investments without adequate preparation. To help interested investors improve their understanding of cryptocurrency and make rational investment decisions, it is important to study their concerns and motivations, and to draw upon experienced investors’ experiences and practices. Therefore, we surveyed crypto investors and inexperienced potential investors interested in trading cryptocurrency (n = 395). Our results showed that extreme price volatility is the primary incentive and a substantial obstacle to market participation. Fraud risks, lack of personal funds, insufficient knowledge, and difficulty identifying credible information sources are also common barriers. Our findings highlight the need to build trustworthy exchange platforms and integrate educational features. Based on the reported concerns and experiences, we 1) identify learning components for new investors, and 2) formulate design recommendations for beginner-friendly exchange platforms.