From cointelegraph by Helen Partz
As Bitcoin trades near new highs, the level of financial literacy in the cryptocurrency community still leaves much to be desired, according to a new report.
The crypto community’s financial literacy rate is estimated at 25%, lagging well behind the financial literacy average in the United States by half, according to a new study by the crypto gaming startup PiP World.
Released on Nov. 26, the report analyzed a survey of 12,045 anonymous responses from crypto market participants submitted from March 2022 to October 2024 through the platform Coinfessions.
In the report, PiP World measured crypto financial literacy — an individual’s understanding and ability to make informed financial decisions — in percentages, referring to scores in “high” and “medium” levels of financial literacy.
While the crypto community’s financial literacy rate is only down 8% from the global financial literacy average, such a rate is “dangerously low,” according to PiP World CEO Saad Naja.
“The findings of this report highlight an urgent and undeniable truth — financial literacy in the crypto space is dangerously low,” Naja said.
He added that too many traders are “navigating blind” in a rapidly evolving market, lacking the “foundational knowledge needed to succeed.”
The study mentions that the emotional strain weighs heavily on the crypto community, which often self-confesses to being “reactive, impulsive and neurotic.”
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The study also suggests that seven out of 10 crypto investors highlighted losses, while 76% of respondents expressed regret about their investment decisions.
According to the study, whales — large crypto investors accounting for 5% of the crypto segment mix — have demonstrated one of the highest crypto financial literacy rates of 96%.