A recent study from the Bank for International Settlements (BIS) reveals why retail investors are willing to invest large sums of their money into crypto when the market is in a state of uncertainty.
By analyzing the average daily usage of crypto exchange apps in 95 countries, it spans around the year from 2015 to 2022.
Based on the study, the increase in the use of Bitcoin (BTC) occurred as investors were interested in the previous price increase.
According to the author of the BIS study, most investors are more interested in trading BTC during volatile price movements than using the digital asset as payment.
In fact, many investors flock to use or start downloading crypto exchanger applications when the price of BTC is climbing.
In addition, the research also found that new users are mostly from younger individuals or men who dare to take risks without expecting a quick profit.
However, not all experienced investors reaping the expected profits as the study revealed three-quarters of retail investors lost their money.
In the meantime, it also found that the highest usage of crypto exchanger applications is in Turkey, Singapore, the United States (US) and the United Kingdom (UK).
Overall, this study reveals that new investors entering the crypto market are solely due to price changes that occur.
