Panic Selling Is Investors' Biggest Mistake
The Cryptovantage team recently conducted a survey concerning investors' attitudes to the storage of virtual assets and crypto wallets passwords. They understand all too well how easy it is to lose access to the magic Internet money. Look how that went.
Results of the Study
1021 crypto owners from the USA took part in the survey. It turns out that most of them prefer to store a high-yielding alternative asset class on exchanges. Coinbase is users' best bet (34.7%). Binance and Robinhood wallets have also attracted an impressive customer base - about 25% and 26%, respectively (learn how crypto wallets can make traditional banks a museum piece here). Almost 75% of respondents choose SoFi, an American online personal finance company, as a secure crypto wallet, despite the fact that less than 9% use it as the main option.
To find out how investors feel about keeping wallets passwords, the specialists conducted another survey. According to it, 61% believe that their passwords are safe, about 12% - do not. Surprisingly, crypto fans' opinions were divided. Among the main methods were password managers (26.6%), handwritten notes (18.6%), password safe (15%), and screenshots (10.3%). The document says:
"39.7% of participants forgot their passwords before. 95.6% of them failed to regain access to their investments."
85.7% sought help from password recovery resources. Perhaps this will allay some fears and assist in dealing with trust issues among existing and future investors. Those less fortunate - investors who lost access to crypto wallets - ended up losing an average of $2,134.
The survey also showed that one-third of the participants became victims of crypto-scams by email (47.7%), through websites (45.2%), and fake mobile applications (44.6%).
Investors’ Biggest Mistake
Except for scam and incompetent password management, 38.2% of investors mentioned panic selling. In their opinion, it is one of their greatest mistakes. 32.5% indicated investing in just one coin. At the same time, the password loss was 12.5%, which is the lowest indicator among the group.
In addition to the above conclusions, Cointelegraph analyzed the attitude of American consumers to crypto payments. Of the 8000 participants, almost 60% who haven’t been holders of digital money have a stake in using it to make purchases. More than half of the surveyed crypto owners express interest in paying for online shopping with coins.
The above survey just goes to show, panic selling doesn't do you or anyone else any good. Every market participant has to learn this lesson. Do not repeat others' mistakes! Many investors start to panic and compound the situation. Do not try to guess the moment of purchase or sale. And don't believe anyone who says that this or that asset has reached the bottom — how would he know it has? It is better to wait out “the storm” and celebrate a new dawn.
P.S. If you are still experiencing anxiety, please refer to our investor’s guide. It will help to minimize the risks when working with cryptocurrency (all the details are in our article). We hope our tips will prove useful!