Nerds, hackers, opponents of the financial system – the list of prejudices against crypto investors is long. What drives them to buy – what holds them back? An insight into the souls of the crypto investors.The classic crypto feeder is young and male, that’s already known. In addition to his willingness to take risks, the typical investor also has a great interest in IT. “By far the largest group are the digital natives,” says Philipp Sandner, head of the Frankfurt School Blockchain Center.
Afraid to miss something
In Germany, the Frankfurt Blockchain Center estimates the number of crypto investors at almost half a million – of which each one is said to have invested an average of four-digit amounts. For many, the desire for returns played a big role. But that can quickly turn into greed. “They are afraid to miss something,” says Sandner. The phenomenon is called “Fear of missing out” – short FOMO.Especially during the crypto-boom last year, the FOMO should have played a major role: in a survey of the CoinDesk trading platform among 3,000 investors, more than 60 percent said they had only entered the market in 2017.
For IT-savvy investors, the technology of the blockchain should have been the main incentive. “Many feel like a co-founder of the technology through their investment,” says Sandner. He is convinced that technology will continue to gain in importance and integrate into other areas. About 40 percent of a survey of the online platform LendEDU believes in this among some 560 American crypto investors. They said that’s why they invested in Bitcoin.
Belief in medium-term growth
For many investors, however, that is no reason to opt out: they believe that the market capitalization of cryptocurrencies will increase significantly over the next three years. At least 80 percent of the 1,800 respondents in the sentiment index report of the crypto exchange Huobi in March. This is exactly the period in which more than a third want to hold its stocks.What investors are worried about is, among other things, the security of their assets. Since the beginning of 2017 alone, there have been 15 hacker attacks on crypto exchanges. Coincheck was hit hardest by hackers in January 2018 stealing $ 4 million worth of cryptocurrency Nem coins. The fear of similar attacks is shared by more than a third of the approximately 1,100 participants in a survey by the trading platform Encrybit.