Gambling Addiction and FOMO-Driven Investors More Likely to Suffer in Crypto Markets: Study

cryptonews.com:

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

People with gambling issues or those influenced due to Fear of Missing Out (FOMO) are at a higher risk of experiencing financial and emotional damage in the crypto market, according to a new study.

This study involved 487 crypto investors and was published recently in the International Journal of Mental Health and Addiction. It explored the relationship between personality traits and the harms experienced from crypto speculation.

Financial losses and psychological distress were the most common consequences that investors reported. These were often accompanied by feelings of failure, anger and shame.

Interestingly, it wasn’t the amount of time or money someone put into crypto that determined the harm they experienced. Instead, traits like impulsivity, gambling tendencies and FOMO were the real predictors.

Those experiencing FOMO were more prone to making hasty, uninformed investment decisions, exacerbating their risk in the volatile crypto market. The fast-paced and often hyped nature of crypto markets can intensify FOMO, leading to impulsive decisions without thorough research.

Problem gamblers were found especially vulnerable, as their approach to crypto often mirrored their gambling habits, leading to significant losses.

According to the study, while cryptocurrency investing is distinct from gambling, some individuals approach it with a gambling mindset, increasing their risk of harm. For example, investing large amounts in speculative tokens or frequently checking prices can reflect a compulsive engagement with the market.

Further, the study suggests that focusing on trading behaviors, rather