2024

World

Bitcoin

As Bitcoin trades near new highs, the level of financial literacy in the cryptocurrency community still leaves much to be desired, according to a new report.
The crypto community’s financial literacy rate is estimated at 25%, lagging well behind the financial literacy average in the United States by half, according to a new study by the crypto gaming startup PiP World.
Released on Nov. 26, the report analyzed a survey of 12,045 anonymous responses from crypto market participants submitted from March 2022 to October 2024 through the platform Coinfessions.
In the report, PiP World measured crypto financial literacy — an individual’s understanding and ability to make informed financial decisions — in percentages, referring to scores in “high” and “medium” levels of financial literacy.
<h2 id="financial-literacy-in-the-crypto-space-is-dangerously-low">Financial literacy in the crypto space is “dangerously low”</h2>
While the crypto community’s financial literacy rate is only down 8% from the global financial literacy average, such a rate is “dangerously low,” according to PiP World CEO Saad Naja.
“The findings of this report highlight an urgent and undeniable truth — financial literacy in the crypto space is dangerously low,” Naja said.
He added that too many traders are “navigating blind” in a rapidly evolving market, lacking the “foundational knowledge needed to succeed.”
<figure><img alt="Cryptocurrencies, Education, Research, Finance" src="https://s3.cointelegraph.com/uploads/2024-11/019368ac-98a9-73f5-9401-d5fa27aef4ef" title="">
 <figcaption style="text-align: center;">
 Crypto financial literacy rate versus regional financial literacy rates of adults in 2024. Source: PiP World
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The study mentions that the emotional strain weighs heavily on the crypto community, which often self-confesses to being “reactive, impulsive and neurotic.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coin-center-warns-us-policies-scare-away-crypto-despite-trump-win" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Coin Center warns US policies could scare away crypto investors despite Trump win</a>
The study also suggests that seven out of 10 crypto investors highlighted losses, while 76% of respondents expressed regret about their investment decisions.
<h2 id="whales-and-hodlers-are-among-the-most-financially-literate-investors">Whales and hodlers are among the most financially literate investors</h2>
According to the study, whales — <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/how-do-crypto-whales-protect-their-identities" rel="noopener noreferrer nofollow" target="null" text="null" title="null">large crypto investors</a> accounting for 5% of the crypto segment mix — have demonstrated one of the highest crypto financial literacy rates of 96%.
<a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/day-trading-vs-long-term-cryptocurrency-hodling-benefits-and-drawbacks" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/learn/articles/day-trading-vs-long-term-cryptocurrency-hodling-benefits-and-drawbacks">Hodlers, or long-term cryptocurrency holders</a> — estimated to account for 11% of the mix — are also associated with a significant financial literacy rate of 80%, the study suggests.
<figure><img alt="Cryptocurrencies, Education, Research, Finance" src="https://s3.cointelegraph.com/uploads/2024-11/019368aa-197f-70f7-a851-37548609e6e8" title="">
 <figcaption style="text-align: center;">
 Financial literacy rates by crypto community segments. Source: PiP World/Coinfessions
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The report claims that speculative traders, which PiP World says to be the largest crypto investor segment with a 29% share, have a financial literacy of 64%.
On the other hand, day traders — those representing 6% of crypto investors in the report — have the lowest financial literacy rate, estimated at 27%. Pump and dumpers, which are estimated to account for a significant 18% share of crypto investors, are associated with a financial literacy rate of 45%.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoins-100k-taxman-btc-commodity-china-vitalik-moo-deng-asia-express/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin’s $100K push wakes taxman, Vitalik visits real Moo Deng: Asia Express</a>

Crypto literacy at ‘dangerously low’ levels, new report warns

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