A recent report estimates the crypto financial literacy at 25%, just half the U.S. average, highlighting a significant gap even as BTC approaches all-time highs.
According to a recent report, the degree of financial literacy in the cryptocurrency community is still far from ideal, even as Bitcoin trades close to all-time highs.
According to a recent survey by the cryptocurrency gaming firm PiP World, the financial literacy rate of the crypto community is believed to be 25%, which is much lower than the financial literacy average in the US by half.
The analysis, which was released on November 26, examined 12,045 anonymous replies from players in the cryptocurrency market that were provided via the Coinfessions platform between March 2022 and October 2024.
According to the survey, PiP World calculated percentages for “high” and “medium” financial literacy ratings, which represent a person’s comprehension and capacity for making wise financial decisions.
Crypto Financial Literacy In Industry Is “Dangerously Low.”
According to PiP World CEO Saad Naja, the crypto financial literacy rate in the community is “dangerously low,” even though it is only 8% lower than the global average.
“The report’s findings underscore a pressing and indisputable reality — there is a dangerously low level of financial literacy in the cryptocurrency space,” Naja stated.
Too many traders, he continued, are “navigating blind” in a market that is changing quickly because they lack the “foundational knowledge needed to succeed.”
The report notes that the crypto community, which frequently admits to being “reactive, impulsive, and neurotic,” is greatly affected by the emotional pressure.
According to the report, 76% of respondents regretted their investment choices, and seven out of ten cryptocurrency investors pointed out losses.
Among Most Financially Savvy Investors Are Whales, Hodlers
The study found that whales, or big cryptocurrency investors, who make up 5% of the crypto segment mix, have one of the highest percentages of crypto financial literacy, at 96%.
According to the survey, holders, or long-term cryptocurrency owners, who make up 11% of the mix, are also linked to a noteworthy 80% financial literacy rate.
According to the survey, 64% of speculative traders are financially literate, making them the largest group of cryptocurrency investors, according to PiP World, with a 29% stake.
However, day traders, who make up 6% of the report’s crypto investors, have the lowest level of financial literacy, with an estimated 27%.
A 45% financial literacy rate is linked to pump and dumpers, who are said to make up a sizeable 18% of cryptocurrency investors.
