Gaining insights into the psyche of cryptocurrency traders is a daunting task. A recent survey by crypto exchange Kraken offers some surprising details. Traders source their information from many places, but not necessarily the ones they should be paying attention to.
Crypto Traders Favor Influencers
It will not come as too big of a surprise that many traders seek advice from others before purchasing cryptocurrencies. With all of the available sources out there, it is not difficult to obtain the necessary information. However, relying on influencers and experts as a go-to source for data is not the way things should be done.
According to Kraken’s survey, 15% of traders see influencers as their main source of information. This is slightly ahead of reviewing the project content or checking news publications. In a way, this is not too different from how most people source their “regular” news. They will often check influencers before attempting to verify any content.
Twitter plays a prominent role for traders as well, far more so than Reddit. At the same time, there is a healthy amount of people who will check on-chain data or activity for assets before making any investments. Metrics are underappreciated tools, yet they often tell a big part of the story.
It is surprising to see both GitHub and Reddit represent 5% respectively. This indicates that traders do not care much for technical details or active discussions. Surprising, given how Reddit offers access to vibrant cryptocurrency communities. Other means of acquiring data include interviews, presentations, podcasts, and research teams.
Technical Analysis Remains the Go-to Solution
In the same survey, Kraken asked its users what resources and tools they rely on. For traders, technical analysis will influence 32% of the decision-making process. Fundamentals of a coin – which should be more important – only affect 16% of the trading behavior. Very interesting insights, albeit it shows this industry remains prone to speculation.
What is rather telling is how nearly no one pays attention to media outlets. Whether this applies to crypto media or mainstream media, is a bit unclear. Either way, the media only influences 3% of all traders, which is rather surprising. A lot of outlets provide technical analysis for specific assets, thus this seems a bit contradictory.
All of this goes to show traders want to make money. Speculation runs rampant in the cryptocurrency, as it always has. Changing that narrative will require a very different approach. By the look of things, the media will not play too big of a role in that regard.