Emotions Drive 63% of Crypto Holders to Make Poor Choices, Survey

A new survey by Kraken reveals that emotional decision-making significantly impacts the investment strategies of crypto holders, with 63% admitting that feelings like fear and greed have negatively affected their portfolios.

The study, which polled 1,248 U.S. crypto investors, highlights how psychology plays a crucial role in cryptocurrency trading behaviors.

How FOMO and FUD Shape the Trading Decisions of Crypto Holders

The research found that 84% of crypto holders have made investment choices based on FOMO (fear of missing out), particularly during price surges. More specifically, 58% of respondents frequently make decisions driven by FOMO, while 26% occasionally do so.

The fear of missing significant price increases appears to be a stronger motivator than potential buying opportunities during market dips, with 60% of investors primarily concerned about missing out on upward price movements.

Meanwhile, 81% of participants reported making trades based on FUD (fear, uncertainty, and doubt), suggesting that negative market sentiment heavily influences investor behavior. This emotional trading pattern has led to a notable trend where investors check crypto markets more frequently than traditional markets, with 55% of respondents confirming this behavior.

Gender Differences in Crypto Trading Psychology

The survey uncovered interesting gender-based differences in emotional trading patterns. Male crypto holders showed a higher tendency to make emotion-driven decisions, with 83% reporting FUD-based trades compared to 75% of female investors.

The gap widens further with FOMO-driven decisions, where 66% of men frequently make trades based on fear of missing price surges, while only 42% of women report similar behavior.

Despite Past Regrets, Optimism Remains High

Although 88% of crypto holders believe they’ve missed out on major gains, 84% maintain optimism about future opportunities. This sentiment is particularly strong among older investors, with 78% of those aged 45-60 feeling they missed early crypto gains, yet 74% believing significant opportunities still lie ahead.

The study also found that information sources play a crucial role in emotional trading. About 61% of crypto holders rely on social media and influencers for investment information, with 85% of these investors reporting that emotional decisions have negatively impacted their portfolios. This suggests a strong correlation between social media consumption and emotion-driven trading behaviors.

These findings underscore the importance of developing structured trading strategies and maintaining emotional discipline in cryptocurrency investing, particularly as the market continues to evolve and attract new investors.

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