What is crypto investment literacy and how to achieve it?

All Crypto investors should have Crypto investment literacy for safer investment.

Crypto investment literacy is becoming more and more important for crypto investors as the crypto industry is expanding rapidly. Cryptoliteracy is a term that can be used when discussing an investor’s understanding and knowledge of the cryptocurrency market.

As crypto carries its own risks, there is a clear need and value for investing literacy in cryptocurrencies and how they can help investors manage their portfolios during these uncertain times. But how do you achieve this crypto literacy? This article lists several ways to achieve Crypto Literacy. Bybit conducted a study to examine the user experience of individual investors in detail.

The speed and surprising severity of the recent market decline may have taken the average inexperienced investor by surprise. This demonstrates the need for crypto investment literacy. Before we get into the practical steps you can take to improve your cryptocurrency investing knowledge, you should first understand the typical elements of your investment journey and why they are important.

The Bybit report covers key findings on the current level of investment knowledge among crypto investors and suggestions for improving their portfolios.

In November 2022, Bybit and Toluna embarked on a journey to better understand the consumer journey of cryptocurrency investors. As part of the process, 10,500 unique respondents were surveyed across 19 markets, and 1,748 were identified as “cryptocurrency investors.” To ensure representation in each market, we set quotas for each country’s representatives within the 18-64 age group, SES, and urban and rural areas.

The purpose of the research is-

• We provide a global perspective on how crypto investors perceive centralized exchanges, KYC, and whether the pursuit of decentralization negates trust in centralized exchanges.
• It provides an in-depth overview of current retail cryptocurrency investment literacy and whether A) there are significant differences across countries, markets, and generations in terms of cryptocurrency investor due diligence behavior. B) Crypto investor willingness and behavior.

According to Bybit, there are three main milestones for regular crypto investors.

Project or provider selection, provider selection, and portfolio management are among the first considerations when deciding to invest in cryptocurrencies.

To explain what each milestone includes, why it is important, and what you can learn to increase your investment literacy, Bybit has developed a cryptocurrency investment literacy framework.

Investor Interests and Attitudes

This is what investor interest looks like in the cryptocurrency market.

• Stricter rules don’t affect 1 in 2 investors.
• One in four investors are willing to accept CEX regulations in exchange for greater investment safety.
• 1 in 2 correspondents want more centralized control to expand Web3 adoption.
• CEX is 15% more reliable than NFT and DeFi.
• In fact, 3 out of 5 DeFi supporters are diversified and trust CEX.

Investor Due Diligence Actions

• Compared to previous generations, baby boomers spend 34% more time on DYOR for several days.
• 64% of North American investors never DYOR or do it in less than 2 hours.
• 30% more investors value reputational concerns when choosing token startups over technical factors.
• Baby boomers are typically 20% more knowledgeable than their predecessors due to their growing interest in the technical side.
• In contrast to how token projects are selected, CEX’s normal business practices take precedence over reputation by 30%.

Investor willingness to invest

While still in its early stages, cryptocurrencies have the potential to expand significantly in the long term, with investment horizons ranging from seven months to two years or more.

• In fact, baby boomers and Gen Xers stay for six months or more.
• Generation X, baby boomers, and developed countries tend to develop HODL for longer periods of up to 6 months.
• 46% of crypto investors have a long-term investment outlook of 7 months to 2+ years.
• One in three people invest in cryptocurrency due to its development and wealth building potential.

As a leading cryptocurrency exchange, Bybit is fully committed to improving the investment literacy of cryptocurrency investors. Therefore, we have prepared an investment procedure checklist to strengthen your cryptocurrency investment literacy before your next investment. According to Bybit, the best way to strengthen Crypto Literacy is to find purpose and find investment strategies. Next, secure funds for investment, dig deep into potential projects, find a trading platform, and finally catch up on crypto news. .