A recent study states that a person’s personality might influence investing decisions in assets like stocks and cryptocurrencies. A study by CryptoVantage shows that extroverts, characterized as being outgoing and gregarious, are more inclined to invest in digital assets than equities at a rate of 28%.
According to the research, 73% of extroverts will likely choose Bitcoin (BTC), and 50% will choose USDC Coin (USDC). Additionally, extroverts are willing to invest more than $6,200 of their annual salary, with returns of 14%, in cryptocurrency. It’s interesting that the study noted that the likelihood of extroverts making significant cryptocurrency investments is also mirrored in returns. The category had the highest gains, coming in at $896.98, despite the previous year’s extended bear market and high inflationary environment.
However, it was discovered that introverts were 79% more likely to pump roughly $152.5 worth of various assets during a recession, including cryptocurrencies. In this instance, introverts also favored Bitcoin the most, with a preference of 68%.
Although many respondents said they would still invest in cryptocurrencies in a recession, the study showed that budgets are often tighter during this time. Personality affected how people invested in cryptocurrencies and how much money they made from their returns.
A cryptocurrency’s ability to affect investment choices in the long run, was also discovered. The future potential of the asset was cited by thinkers at 45% of the survey sample when indicating their willingness to invest in Ethereum (ETH).
The study polled 1,000 cryptocurrency investors about their investment practices in order to arrive at its conclusions. The personality qualities were evaluated based on the responses to a series of questions. It follows that investing based on personality may affect a trader’s tolerance for risk and persistence while dealing with cryptocurrency.
Given that historically the sector has been linked to volatility and emotions, it is noteworthy that the research findings bring in a new point of view on crypto investment practices. Regardless of the conclusion, the volatile nature frequently causes fear and greed among investors.
The majority of the time, the increase in FOMO caused by the rise in cryptocurrency prices have contributed to higher pricing. On the other hand, investors might panic and sell when the value declines, which would drive down the price even further.
The research findings generally come at a time when Bitcoin is driving the cryptocurrency market’s trading in the green zone. The current gains are seen as a base for a new surge by a large chunk of the market.