Retail Investors’ Cryptocurrency Investments
Type
working paper
Date Issued
2024
Author(s)
Abstract
We use transaction data gathered by a large fintech firm to study retail investors’ investments in cryptocurrencies. Crypto investors tend to be male, young, high-income, and risk-seeking -- but less so for later adopters. While crypto adoption has increased substantially, most of the trading activity is attributable to a small share of investors. Most crypto investors make very few investments and never monetize them by withdrawing. Initial return experience is a strong predictor of further crypto investments. Men trade more actively than women, and their trading activity responds more strongly to past returns, as well as to initial return experience.
Contact Email Address
vesa.pursiainen@gmail.com