What is Crypto Investment Literacy and How to Attain It?

Every Crypto investor needs to have Crypto investment literacy for safer investments.

Crypto investment literacy is becoming more and more crucial for crypto investors as the Crypto Industry is rapidly expanding. Crypto literacy is a term that we can use When discussing investors’ understanding and knowledge of the cryptocurrency market.

As Crypto comes with its own risks, there is a clear necessity and value of investing literacy in cryptocurrencies and how it may assist investors in managing their portfolios during these uncertain times. But how to attain this Crypto literacy? The article enlists some methods to achieve Crypto Literacy. Bybit conducted a survey which explores the user experience of retail investors in depth.

The quickness and surprising severity of recent market declines may have taken regular investors without much investment experience by surprise. This demonstrates the necessity of Crypto Investment Literacy. Before getting into practical steps one can take to improve their knowledge of cryptocurrency investing, one should first comprehend the typical elements of an investment journey and why they are significant.

The Bybit report covers major survey results on the level of investment knowledge among current crypto investors as well as suggestions for improving your portfolio.

In November 2022, Bybit and Toluna embarked on a journey to better understand the consumer journey of crypto investors. As part of the process, 10,500 unique respondents in 19 markets, with 1,748 identified as ‘crypto investors’ were surveyed. To ensure representativeness across each market, we set a quota per national representation among the following categories: Ages from 18 – 64 years, SES, and Urban vs. Rural region

The purpose of the study was-

  • Provide a global view on how crypto investors perceive centralized exchanges, KYC, and whether the pursuit of decentralization negates their trust in centralized exchanges.
  • Provide an in-depth overview of current retail investors’ crypto investment literacy and whether there are any significant differences amongst countries, markets, and generations on A) crypto investors’ due diligence behavior; B) crypto investors’ investment ambition and behavior.

According to Bybit, there are three primary milestones for ordinary cryptocurrency investors.

Picking a project or provider, choosing a provider, and managing their portfolios come first in their decision to invest in cryptocurrencies.

In order to explain what each milestone includes, why it is significant, and what we can learn to enhance our own investment literacy, Bybit has developed a framework for crypto investing literacy.

Interest and attitude of the investors

This is how the interest of the investors in the cryptocurrency market looks like.

  • Stricter rules have no effect on one in two investors.
  • In exchange for increased investment security, one in four investors is willing to accept CEXes regulation.
  • For greater Web3 adoption, one in two correspondents demands for more centralised management.
  • Over NFTs and DeFi, CEXes have a 15% higher trust rating.
  • In fact, 3 out of 5 DeFi adherents diversify and also have faith in CEXes.

Due diligence behaviour of the investors

  • Compared to previous generations, the Boomers spend 34% more time DYOR-ing for a few days.
  • 64% of North American investors either don’t DYOR at all or spend less than 2 hours doing so.
  • 30% more investors give reputational concerns greater weight when selecting a token startup than do technical factors.
  • Due to their increased attention to technological aspects, boomers are typically 20% savvier than earlier generations.
  • Contrary to how token projects are selected, 30% more preference is given to CEXes’ regular business practises than to their reputations.

Investment ambition of the investors

While still in its infancy, cryptocurrency has the potential to expand significantly over the long term, with investment horizons ranging from seven months to over two years.

  • In actuality, those in the Boomer and Gen X generations hodl for six months or more.
  • Gen X, Boomers, and developed nations are more prone to HODL over longer periods of time—no more than six months.
  • 46% of cryptocurrency investors have a long-term investment perspective, ranging from 7 months to more than 2 years.
  • Due to its development and wealth-building potential, one in three people invest in cryptocurrencies.

As a leading crypto exchange, Bybit is fully committed to enhancing crypto investors’ investment literacy. As such, we have prepared an investment procedure checklist to strengthen your crypto investment literacy before your next investment. As per Bybit, the best way to strengthen your Crypto Literacy is by Finding your objective and finding your investment strategy, followed by setting aside funds for investment, deep diving into potential projects, finding your trading platform, and finally keeping up with the crypto news.

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