Comprehending the Crypto-Curious: How Investors and Inexperienced Potential Investors Perceive and Practice Cryptocurrency Trading

Abstract

With the increasing popularity of cryptocurrency, many people are interested in cryptocurrency investments, but have so far hesitated. Many others have made investments without adequate preparation. To help interested investors improve their understanding of cryptocurrency and make rational investment decisions, it is important to study their concerns and motivations and to draw upon experienced investors’ experiences and practices. Therefore, we surveyed crypto investors and inexperienced potential investors interested in trading cryptocurrency (n = 395). Our results showed that extreme price volatility is the primary incentive and a substantial obstacle to market participation. Fraud risks, lack of personal funds, insufficient knowledge, and difficulty identifying credible information sources are also common barriers. Our findings highlight the need to build trustworthy exchange platforms and integrate educational features. Based on the reported concerns and experiences, we (1) identify learning components for new investors, and (2) formulate design recommendations for beginner-friendly exchange platforms.

Keywords:

• Cryptocurrency
• price volatility
• market manipulation
• investor concerns

Disclosure statement

In accordance with Taylor & Francis policy and our ethical obligation as researchers, we are reporting that Mitacs Accelerate (#IT30275) funds this research project in partnering with Steam Exchange Inc. This financial support does not conflict with our obligations as researchers. We have disclosed those interests fully to Taylor & Francis, and we have in place an approved plan for managing any conflicts arising from that involvement.

Notes

1 https://www.prolific.co/

2 https://dovetail.com/

3 Investors of Mt. Gox are still waiting to get repaid after its bankruptcy in 2014 (Karpeles, 2014; Ostroff, 2022).

Additional information

Funding

The research was supported by the Mitacs Accelerate funding program [#IT30275] for Gamified Learning about Cryptocurrency project, in partnering with Steam Exchange Inc. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of Mitacs, the Steam Exchange Inc, and the University of Waterloo.

Notes on contributors

Hilda Hadan

Hilda Hadan is a PhD student in Systems Design Engineering at the University of Waterloo, and a member of the Games Institute. Her research focuses on human factors in gamification, deceptive design in games and game-related technology, and user privacy and cybersecurity.

Leah Zhang-Kennedy

Leah Zhang-Kennedy is an Assistant Professor at the Stratford School of Interaction Design and Business, a member of the Games Institute and the Cybersecurity and Privacy Institute, University of Waterloo. Her research aims to improve people’s knowledge and technology practices, focusing on computer security, online privacy, and digital literacy.

Lennart Nacke

Lennart Nacke is a professor and pioneer in games, gamification, and user experience (UX) research. Over the past 15 years, he has published more than 200 academic papers and a best-selling book on Games User Research. His groundbreaking work continues to shape how we understand and apply UX research.

Ville Mäkelä

Ville Mäkelä is an Assistant Professor at the Stratford School of Interaction Design and Business at the University of Waterloo. He received his PhD in 2018 from Tampere University, Finland. He conducts research broadly in the field of human-computer interaction, including topics like games, virtual reality, and mobile computing.