Influence from friends and the fear of missing out (FOMO) were some of the reasons investors bought crypto for the first time in 2022, according to a survey by a United States financial regulator. <\/p>\n
Published<\/a> by the United States Financial Industry Regulatory Authority (FINRA) Investor Education Foundation in late April, the survey found that a large portion (31%) of new cryptocurrency investors cited “friend suggestion” as the primary reason for their foray into crypto.\u00a0<\/p>\n This is compared to only 8% for first-time equities or bond investors, potentially indicating that there is “a social element to cryptocurrency investing not evident in equities or bond investing,” according to FINRA.<\/p>\n However, the ability to \u201cstart with small amounts\u201d was the second biggest reason<\/a> for making a move into the crypto market at 24%, similar to equities and bond investors.\u00a0<\/p>\n Meanwhile, around 10% of respondents indicated a fear of missing out (FOMO) on a \u201cpotentially lucrative investment opportunity\u201d led to them buying crypto for the first time<\/a>, according to the survey.<\/p>\n The survey also found that 48% of crypto investors said they sourced information about the\u00a0digital asset market<\/a> from friends, family or work colleagues \u2014 compared to 35% for stock investors \u2014 followed by social media at 25%.<\/p>\n The survey also found that newer crypto investors were slighter younger on average (37 years old) and less college-educated (28.5% completed a four-year degree) compared to stock investors (43 years old and 46.3% with college degrees).<\/p>\n Related: <\/strong>Crypto becomes second most widely-owned asset class for young women: eToro survey<\/strong><\/a><\/p>\n Interestingly, the study found that digital asset owners didn\u2019t know as much about cryptocurrencies as they initially thought.<\/p>\n Digital asset investors scored 26.6% on a five-item quiz that asked questions about how a cryptocurrency is issued; transferred into U.S. dollars; how it is taxed; and how transactions may be \u201csusceptible” to fraud.<\/p>\n The 465 participants surveyed on Sept. 9 and 29 were randomly selected from U.S. households. The margin of error was 6.75%.\u00a0The 2022 survey was part of a follow up survey from 2020.<\/p>\n Magazine: <\/strong>Magazine: Crypto winter can take a toll on hodlers\u2019 mental health<\/strong><\/a><\/p>\n<\/div>\n![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-05\/87e633d0-e834-48fc-9f8c-841d299be67a.JPG\" "\\"\\"")
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