As it becomes increasingly easier to invest in cryptocurrency, the need for crypto investment literacy has never been greater. This is why we have decided to embark on a global study to explore how users can better practice safe investment habits.
Crypto Investment Literacy and Why it is Important
Investing in cryptocurrency can be a great way to accumulate wealth, but it’s not something that should be done lightly. As with any investment, there are risks when investing in crypto . That’s why it’s important for crypto investors to be educated about the space and understand the associated risks before investing their hard-earned money. This includes accumulating knowledge about how to properly store your coins, how to assess different projects and tokens, and how to spot scams or other potential problems before they become costly mistakes. This is what we call Crypto Investment Literacy.
It’s no secret that investing in cryptocurrencies can be risky. Without a basic understanding of how cryptocurrency markets work, investors can easily fall prey to scammers or make bad investments that result in losses. Our crypto investment literacy framework aims to provide investors with the tools they need to protect themselves from such risks and make informed decisions about their investments. Furthermore, investing without proper education puts your money at the risk of being lost due to volatile market conditions. So take some time to educate yourself on how cryptocurrency markets work and find outhow to strengthen your crypto investment literacy—it could mean all the difference between success and failure!
Key Findings
Bybit's Crypto Literacy Report highlights crypto investors do not make sufficient due diligence before making investment decisions, with 64% of North American investors spending less than 2 hours on research. What's more, 30% more investors prioritize reputational factors as compared to technical factors. While such factors are important, all investors should also aim to dig into more fundamental factors, such as technology backup, industry landscape, tokenomics, community engagement, etc., for better risk assessment.
Tips for Staying Safe
The first step towards improving your crypto investment literacy is to educate yourself. Understanding key concepts such as blockchain technology, smart contracts, etc., will help you make informed decisions about your investments. Additionally, keeping up-to-date with news related to cryptocurrency regulation can help you stay abreast of changes in the industry that may affect your investments or profits.
Finally, consider talking with experienced investors who have experience managing crypto portfolios—they can provide valuable insight into best practices when investing in cryptocurrency assets. For more tips, check out our 7-step checklist to strengthen your investment habits!
Source: Bybit Blog | Ben's Take on the Importance of Crypto Investment Literacy
