Social media users are more likely to invest in Crypto

The new study at the University of Georgia (UGA) revealed that social media users have more likely to invest in Krypto.

The research concluded that the engagement on platforms such as YouTube, Reddit and X increases the likelihood of investing in digital currencies.

Influence of social media on crypto investments

The UGA examination found that approximately half of the surveyed social media users were invested in Crypto, compared to only 10% of those who do not use social networks. Furthermore, it concluded that several platforms with which the individual hired, is more likely to invest in the asset class.

Those on YouTube, Reddit, X and Clubhouse showed the highest investment rates, while Instagram users demonstrated less enthusiasm for crypto. The researchers suggested that it is because the first three facilitate the hearings of crypto through videos with long forms and quotes based on text, as opposed to instagram visually-oriented content.

“Many people talk about cryptoturrence on social media and how popular is,” Lu Fan said, an associate professor on Uga. “There are a lot of familiar personalities about it. People think,” Because my friends, family and celebrities I admire with all investment in that, maybe I should, “she added.

The research also revealed that they are on investment forms under the influence of demographics. Men and individuals with higher tolerance at risk are more likely to invest in Crypto, while those with high levels of education were less prone. The age also played a role, and they are older showing less interest.

Rising crypto investment and risk of consciousness

The findings of the UGE are similar to the Poslošće report from the National Study of Financial Ability and investor research, which has shown that in 2018. 15% of participants invested in Crypto. By 2021. that number increased to 28%. Version of the research 2021 also revealed that consciousness increased, with more than one in three participants with respect to the investment, compared to less than 20% in 2018. years.

University analysis also pointed out concerns about the misinformation on social media. Researchers have found that younger investors, who make up the largest part of the demographic part, can overestimate their investment knowledge and be vulnerable to scams and bad financial advice.

The professor fan emphasized the importance of assessment whether the crypto is harmonized with the financial objectives of the individual, not investing in investment decisions based on social media trends.

The research concluded to suggest that policy makers believe that these findings are in the development of regulations for the crypto market. In addition, he called for increased efforts in media relief for literacy to help people vary between credible investment advice and wrong information.