In contrast to stock or bond investors, a FINRA survey found that new cryptocurrency investors were more likely to be persuaded by recommendations from friends.
According to a survey by a US financial regulator, among the factors that motivated investors to purchase cryptocurrency for the first time in 2022 were social pressure and FOMO.
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According to a survey released in late April by the Investor Education Foundation of the United States Financial Industry Regulatory Authority (FINRA), a significant percentage (31%) of first-time cryptocurrency investors mentioned a “friend suggestion” as the main catalyst for their investment decision.
It is possible that there is “a social element to cryptocurrency investing not evident in equities or bond investing,” according to FINRA, since this contrasts to only 8% for first-time investors in equities or bonds.
Meanwhile, around 10% of respondents indicated a fear of missing out (FOMO) on a “potentially lucrative investment opportunity” led to them buying crypto for the first time, according to the survey.
The survey also found that 48% of crypto investors said they sourced information about the digital asset market from friends, family or work colleagues — compared to 35% for stock investors — followed by social media at 25%.