The cryptocurrency market is still in its infancy and has huge opportunities. The range of attitudes towards cryptocurrency tends to be wide, but recent research has shed light on certain trends one way or the other. On the one hand, we see beginners embarking on projects that they cannot understand, and on the other hand, we see aspirants in investing in cryptocurrencies who question their ability to participate.

At one end of the spectrum are coding expanders, where it is interesting that understanding and self-confidence are inversely correlated. Last year, Dutch bank ING conducted a survey of 10,500 people in Europe about cryptocurrencies. Of the 13% who had the lowest level of knowledge about cryptocurrencies, 80% showed high to moderate confidence in the future. The cognitive bias of these results indicates an uncomfortable path to adopting a cryptocurrency. Nevertheless, I believe that interest, whether or not combined with good understanding, is a step in the right direction.

A previous survey of 1,000 online investors showed that 44% of respondents did not trade cryptocurrencies because they believed they were not given a proper education. In particular, more than half of the women surveyed admitted that a lack of knowledge was the biggest obstacle to entering cryptocurrency investments, even though their interest in doing so was in line with men’s interests. A separate survey conducted by Grayscale last year showed that US investors are more likely to invest in Bitcoin (BTC) if they are more familiar with the asset compared to stocks and bonds.

This limitation no longer goes unnoticed in space. Interim CoinMarketCap CEO Karlin Chan, who is recently retired, shared that she left the cryptocurrency data site in hopes that it would play a more prominent role in cryptocurrency education.

Lack of financial education
Getting into FOMO or freezing by RD&D is just asking questions of your choice. Would any of these externally imposed calls to act or inaction spread if people were better informed?

However, humans are not to blame alone. Looking at reputable publications publishing articles on how to be the only person who does not get rich from BTC, it is no surprise that people are in a hurry to create a wallet. However, the only shortcut you would have to swear by is DYOR before “dipping your own resources” into “Next Bitcoin.” This whole story leads to fast investments and spurs the search for a fast cryptocurrency.

As a result of lower barriers to entry, inexperienced investors without a financial background are entering the crypto space in anticipation of immediate profits. Profit from day trading is a legitimate strategy, but it is unfair for the entire industry to do with it in the short term. How do we expect traditional financiers and proponents of the “billionaire approach” to take digital assets seriously, given that for most cryptocurrency investors, the long term is a week?

The perceived dichotomy between the digital and traditional economies can be written off by proving to potential investors that basic economic principles are the starting point for a successful intervention in cryptography and that a misunderstanding of the normal business economics process can result in the loss of all the actors involved.

One of the features of both types of financing is the dividend payment. This year, many companies around the world tried to distribute profits based on record bankruptcy and unemployment files in the markets. Those with a strong financial understanding should know that while control of dividend policy is entirely in the hands of the company that distributes them, the price of stocks / tokens is fully determined by the market, and the cryptocurrency markets are known to be more volatile. Dividend payment affects price: an increase in the announcement date and a corresponding decrease in the due date are usually expected.

Understanding these principles when anticipating profits from cryptocurrency companies means that users will be more aware of their movements during this time, whether they are in a hurry to buy more tokens, which could lead to an unintentionally raised price, or to sell tokens upon detection. Dividend.

In this regard, regular companies go through the same tests as crypto companies. Dividends have been reduced in all regions except North America, according to a report by Janus Henderson, a fund manager that tracks earnings worldwide. Traditional financial firms have not lived up to shareholder expectations, and there are concerns that when these companies are able to pay dividends – say, in 2021 – they will actually lose confidence in their investors.

Source: CoinTelegraph