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What Can We Learn from Retail Investors’ Trading in Cryptocurrencies?

State Street LIVE Research Retreats deliver insights and intelligence on the trends and topics impacting global markets and our clients.

December 2021

Unlike traditional trading, the value of crypto trading is driven primarily by perception of future use.

Research data shows that trading habits and behaviors of those participating in stock trading and those engaging in crypto trading is vastly different. Where stock traders tend to focus on an array of assets, crypto traders are more likely to focus on one or two. Crypto’s high and persistent price impact make it a tough road for the risk averse.

Newly appointed academic partner at State Street Associates and Stewart C. Myers-Horn Family Professor of Finance at the MIT Sloan School of Management Antoinette Schoar uses proprietary data from a discount brokerage platform to analyze the trading behavior of retail investors in cryptocurrencies compared to stocks and other asset classes.