The crypto industry is continuously expanding, and the events that occurred in the past year gave investors major shocks. However, they also highlighted the need for having a clearer and deeper understanding of the crypto space to navigate safely and securely.
“Crypto literacy” is a term used to describe the investor’s familiarity with understanding of the digital assets environment. Unfortunately, the quickness and shocking size of recent market downs might have caught individual investors unprepared.
According to a recent report titled “Crypto Investment Literacy” published by Toluna, a research firm in collaboration with a crypto firm, investors in North America have been least concerned about researching before investing. About 64% of North American investors spend less than two hours or don’t do any research at all before making a crypto investment.
Before making decisions on investments, investors must do their research and analysis. However, data suggests that two of every five cryptocurrency investors do less than two hours of due diligence before investing. The graph below shows the respective time particular regions and generations spend researching before investing.
It covers generations as Boomers (born during 1946 to 1964), Gen X (born during 1965 to 1980), Millennials (born during 1981 to 1996) and Gen Z (born during 1997 to 2012).
The report revealed that the nations of Asia and the emerging economies from the Pacific region have been devoting the most time to research.
Interestingly, a look into respective generations reveals that boomers are the ones that put in the most time doing their analysis. They have ranked as the most cautious and risk-savvy investors, with 34% of the population spending a few days carrying out their research. Their research activity has been around 50% more than other generations before investing.
The graph below shows the factors prioritized by investors while researching to make investments.
In addition, the report also stated that boomers, on average, are 20% savvier than other generations as they put a greater emphasis on technical variables. On the contrary, other potential investors prioritize a token project’s reputation more than the project’s technical factors.
A quick peek into the factors one must look for before investing reveals that the method used to choose token projects and the day-to-day business practice aspects of centralized exchanges (CEXs) are favored by a margin of 30% greater than reputational factors.
Despite cryptocurrency being in the infancy stage as an asset class, investors continue to have faith in its long-term development potential, exhibiting long-term investment horizons ranging from seven months to over two years.
Reportedly, boomers and gen x have the strongest diamond hands as they have been hodling them for at least six months.