77% Crypto Investors Prefer Gaming, Exchange & Blockchain Projects

In an exclusive research report provided to FXEmpire from BDC Consulting, various aspects of the process behind an investor’s decision-making have been analyzed. The research focused on just five essential questions that encompass investor psychology.

The “How” Behind a Decision

BDC Consulting selected 16 individuals, each with a different timeframe of experience in the crypto space. This focus group included eight people with up to one experience in crypto investments.

Another four people have been investing in crypto for between one to two years, and four more investors have been in this space for more than two years. 

The game, created with a simple objective of maximizing profits through investment distribution, brought forward some interesting insights.

Firstly it was observed that the focus group tended to approach the group choice when it came to investing.

Coincidentally this decision also benefited them as each individual gained 15% higher benefits. In line with the same, the report stated:

“ – The opinion of the group will allow paying attention to the details of the projects that were not touched upon in the first study; 

– Project discussions can also demonstrate an unexpected and attractive investment decision; 

– Also, by participating or taking into account the group discussion, one can more accurately determine the most profitable project from the set.”

Secondly, when it came to alluring factors while choosing a project, the research found that individuals also focused on the more intrinsic details beyond the common profitability characteristic.

Transparency, a strong development team, community support, understanding the mechanics of the project, and stability were some critical factors in their decision-making process. Other expectations from the project included the following:

The most interesting outcome was the focus group’s choice of project based on its functionality.

About 34% of choice came for Exchange projects (Binance, Kraken, Gemini, etc.), 22% for Blockchain projects, and 21% for Gaming (GameFi) projects (Axie Infinity, Decentraland, etc.).

On the other hand, DeFi and MEME projects (Dogecoin, Shiba Inu, etc.) accounted for just 7% and 15% preference, respectively.

Furthermore, on the discussion of how a group investment decision is formed, the research found that ‘group decision is an ambiguous tool.’ Adding to the same, the report stated:

“The basics of DAO principles allow one to build the most effective communication according to two advantageous strategies: a deep review of each project or selection by key weaknesses. The first strategy is better suited for a small set of projects, and the second is suited for working with an array.

Analytical and logical arguments are important. They allow you to adjust the willingness to take risks. However, the group is more susceptible to misconceptions and biases that do not correlate with real data, making this practice potentially dangerous for making high-risk decisions”

Finally, BDC Consulting highlighted that different market categories’ projects are identified based on their yield in the last observation.

Although, a group selection better distinguishes projects of higher yield than lesser profitable projects.

In the prevailing market conditions, these factors play a significant role when it comes to deciding upon crypto investments.