A survey from the United States Financial Industry Regulatory Authority (FINRA) unveiled that influence from friends and the fear of missing out (FOMO) were among the reasons which pushed investors to buy crypto for the first time in 2022.

The regulator’s survey found that 31% of new cryptocurrency investors cited “friend suggestion” as the main reason for diving into the crypto world, compared to 8% which were linked due to “a social element to cryptocurrency investing not evident in equities or bond investing.”

Nearly a quarter of survey respondents also cited the ability to “start with small amounts” as their primary reason for buying cryptocurrencies for the first time, while 10% “didn’t want to miss out”; a common feeling among many cryptocurrency fanatics.

The majority of other options have not received much popularity relative to FOMO and friend suggestion. They include celebrity endorsement, advertisement, zero-commission trading and dips in the market.

Also revealed in the survey was that 48% of crypto investors stated that they source information about the digital asset market from friends, family or work colleagues, which highlights the influence which FOMO and friend suggestion have in this market.

Sources:

https://cointelegraph.com/news/friends-and-fomo-pushed-newbie-investors-to-buy-crypto-in-2022-survey

https://blockzeit.com/new-crypto-investors-driven-by-friends-and-fomo-based-on-finra-survey/

https://crypto.news/social-influence-and-fomo-drove-crypto-investors-among-new-investors-in-2022/

https://www.finrafoundation.org/sites/finrafoundation/files/New-Investors-2022-Entering-The-Market-In-Novel-and-Traditional-Ways.pdf