Psychology behind investors’ decisions in the cryptom market
The world of cryptocurrencies has been valued since the establishment of a high risk market, a high -reward. Below the surface is a complex network of psychological factors that affect investor decisions. In this article, we deepen psychology behind investors’ behavior in the cryptic market and explore how these factors shape purchasing power.
Fearworker: Anxiety and Risk Observation
One of the most important factors in the investment decisions in the Crypto Critico market is fear. Investors often hesitate to put their money on a new asset class because they are aware that it is a high, volatile risk industry. This fear is exacerbated by the lack of understanding of encryption currency technology, which makes investors feel insecure and anxious.
Studies have shown that investors generally consider cryptocurrencies to be more unstable than traditional funds that can increase anxiety and reduce investment decisions (Sternberg et al., 2019). In addition, studies have found that investors are more likely to sell their investments when they are among the losses, showing the effect of «Bear Square» (Lafferty & Hetherington, 2006).
Psychology of Optimism: Trust and Expectations
On the other hand, optimism plays an important role in investor decisions. Investors who rely on the long -term potential of a particular asset are more likely to invest because they believe that their money will increase over time.
The key factor that contributes to optimism is the concept of «self -efficiency» that refers to the individual’s perception of his or her ability to succeed in a particular field (Bandura, 1997). When investors feel confident about their investment decisions, they are more likely to rely on their instincts and take the calculated risks.
Social Impact: Network Effects and Word of the Mouth
Another important factor that defines the behavior of investors is a social impact. The concept of «social evidence», which refers to the tendency of individuals to follow, plays an important role in investing in cryptocurrency (Cialdini et al., 2009).
Investors are often influenced by colleagues and online communities, which can lead to a phenomenon known as «group polarization». This happens when a group of investors with similar investment goals and risk tolerance begins to embrace more extreme positions by creating a self -led loop.
Loss Impact: Fear of Loss vs. Hope you win
Finally, hate losses is another psychological factor that format investors’ behavior in the crypto market. Investors are more likely to be afraid of losses than monitoring the result (Kahneman & Tversky, 1979).
This can lead to a phenomenon known as «aversion», which leads to investors who are more cautious and more risk in new investments. In contrast, when an investor feels a profitable result, it is likely to engage in high risk behavior, such as buying more cryptocurrencies.
conclusion
Investors’ decisions on the Crying Critico market are influenced by the complex interaction of psychological factors. By understanding these factors, investors can develop more effective strategies to browse markets and achieve financial goals.
In summary, the psychology behind the decisions of investors in the encryption -critical market has been multiplied and large. Investors recognize the prejudice of fear, optimism, social impact, loss of losses, and group polarization, investors can make information that is consistent with their tolerance and investment goals.
References:
Bandura, A. (1997). Self -intention: Practicing control. New York: Freeman.
Cialdini, R. B., Adams, W. R., and Rothblt, M. L. (2009). Impact: Science and Practice. Allyn & Bacon.
Kahneman, D., and Tversky, A. (1979).