30s Summary

PiP World’s study found only 25% of the crypto community have good financial literacy, significantly below the US average of 50%. The research, based on a survey of over 12,000 crypto market participants, showed many were reactive, impulsive, or regretful about investment choices. However, the study also revealed that ‘whales’, the big players making up 5% of the community, have a 96% financial literacy rate, while long-term holders have an 80% rate. A significant segment of speculative traders (29% of investors) showed a decent financial literacy rate of 64%, but day traders scored the least at 27%.

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As Bitcoin keeps making waves with its high-value trades, it seems that the knowledge and understanding of finance within the cryptocurrency community could use some boost. So says a recent report.

According to a study by PiP World, a crypto gaming startup, only 25% of the crypto community have a good grip on financial literacy. This is way below the average in the U.S, which is 50%.

The study was based on a survey conducted by Coinfessions between March 2022 and October 2024. The platform collected anonymous responses from over 12,000 individuals involved in the crypto market.

The study assessed an individual’s understanding of finance and their ability to make sound financial decisions involved in crypto trading.

PiP World CEO Saad Naja expressed concern about the low financial literacy rate, only 8% lower than the global average. This, he said, is a serious issue. The low level of understanding on how to make informed financial decisions leaves many traders flying blind in a rapidly evolving market, he added. Naja highlighted the urgent need for better foundational knowledge on the subject.

The report brought to light some emotional issues within the crypto community as well. Many in the crypto world confessed to being often reactive, impulsive and neurotic. The negative feelings were also evident in the significant number of crypto investors who suffered losses and via the 76% who expressed regret about their investment choices.

The study had some good news too. It seems that whales – or the big players in the crypto world, forming 5% of the community – have a whopping 96% financial literacy rate. The long-term crypto holders or ‘hodlers’, representing 11% of the community, also had an impressive rate of 80%.

This report shows that not all crypto investors are lacking in financial literacy. According to PiP World, the largest segment of crypto investors, the speculative traders with a 29% share, have a decent financial literacy rate of 64%.

However, day traders, who make up 6% of investors, scored the least at 27%. Those who partake in “pump and dump” schemes were at 45%.