Hong Kong Polytechnic University has recently conducted a study on the behavior of cryptocurrency investors in the fast-paced virtual asset market. The findings of the Investment Committee’s “Retail Investor Research 2023” report are quite telling – they expose the common thinking patterns of investors, as well as the shortcuts that may result in financial missteps.
The research team categorized investors into five types, with each type having its own set of cognitive biases. 75% of those surveyed were in pursuit of short-term gains, while 74% believed in the long-term trend of virtual assets. 73% feared missing out on potentially profitable opportunities.
These insights suggest that, despite having financial knowledge, investors need to take a comprehensive approach to their investment strategies. Three main steps are recommended: vigilance to protect assets, understanding of product characteristics and risks, and mindful investment behavior.
It is important to note that, in the world of virtual asset investments, it is the mindset and behavioral patterns that determine the success of investments. Therefore, it is essential to be aware of the shortcuts and to approach the dynamic landscape with caution and reflection. Hong Kong’s investors must be well-informed in order to make secure and profitable decisions.