Every crypto portfolio is different and everyone has a different strategy when it comes to investing in the world of cryptocurrencies. A recent research from CryptoVantage has conducted research into the relationship between personality traits and cryptocurrency investment behavior.
For the research, a questionnaire was administered to one thousand crypto investors to learn more about their personality and their investment behavior.
Crypto over stocks
The study found that extroverts are 28% more likely to invest in crypto over stocks than introverts. Extroverts are also more successful in trading than introverts, according to the study. Finally, the annual investment of extroverted crypto investors was also significantly higher than introverted investors, suggesting that extroverts are more willing to take risks. This additional risk appetite could also be what contributes to the higher returns on investments (ROI).
Bitcoin (BTC) stood out as the most popular cryptocurrency among both extroverted and introverted investors. The only actual difference is that introverts have ethereum (ETH) at number two and extroverts have USD Coin (USDC).
Investing in the bear market
Despite last year being dominated by the persistent bear market, the extroverted crypto investors managed to post an average profit of $896.98 on an average annual investment of $6,265.20. The introverted investors couldn’t get past $698.83 on an average annual investment of $5,713.92. In percentages we are talking about an ROI of 14% and 12% respectively.
In general, most crypto investors indicated that a bear market does not prevent them from continuing to invest in crypto. On the other hand, introverts were more likely to invest in cryptocurrencies during a recession than extroverts. 79% of introverted crypto investors are most likely to invest during a recession, while the figure for extroverted investors was ‘only’ 73%.