Crypto financial literacy falls to 25% in new report

A recent report by PiP World reveals that financial literacy in the cryptocurrency community stands at just 25%, half the average rate in the United States.

The study, released on November 26, analysed over 12,000 anonymous survey responses collected from March 2022 to October 2024 through Coinfessions.

PiP World measured crypto financial literacy based on individuals' ability to make informed financial decisions.

The report labeled the current state of financial literacy in the crypto space as "dangerously low."

“The findings of this report highlight an urgent and undeniable truth — financial literacy in the crypto space is dangerously low,” emphasised Saad Naja, CEO of PiP World.

He added that many traders lack the foundational knowledge to navigate the rapidly evolving market.

The study highlights significant emotional strain among crypto investors, with 76% of respondents expressing regret over their investment decisions, and 70% reporting financial losses.

The lack of financial literacy contributes to reactive and impulsive behaviors, leaving many traders vulnerable to market risks.

The report also examined literacy rates across different investor categories.

Whales, who make up 5% of crypto participants, demonstrated the highest financial literacy at 96%.

Long-term holders, or hodlers, accounting for 11% of investors, showed a literacy rate of 80%.

Conversely, day traders, representing 6% of the segment, had the lowest rate at 27%.

Speculative traders and pump-and-dump participants were associated with rates of 64% and 45%, respectively.