Those With Less Than $1,000 Invested in Crypto Get Less Sleep Than Those With Over $1,000 Invested
Unlike traditional stock markets, the cryptocurrency market is open for trading 24/7. What effect does being able to buy or sell at any time of the day or night have on investors? Are people losing sleep over crypto investing? Our latest study explores current investor habits and concerns plus the impact of crypto trading on their mental health and sleep.
- The majority of baby boomers and Generation X invest in crypto as a way to save for retirement, while most millennials and Gen Zers are doing it to make money quickly.
- The most common frequency to check on crypto investments was once a week (43%), but 33% of people admitted to checking on their investments daily.
- Baby boomers were the most likely to be worried about their crypto investments with 74% reporting their concern.
Portrait of a Crypto Investor
According to our survey, the generation most invested in cryptocurrency was Generation X, with 70% of respondents born from 1965 to 1980 identifying as crypto investors. Baby boomers and millennials weren’t too far behind at 68% and 67%, respectively. Less than half of Gen Zers surveyed were currently invested in crypto.
The greatest divide between the generations became apparent when we asked about reasons for investing in crypto. Older generations mainly invested in order to save for their retirement, while younger Americans were looking to make money quickly.
Though currently the group that’s least invested in crypto, Gen Zers are turning increasingly to digital currencies, perhaps as a result of a reported distrust of traditional investment institutions among this generation. Gen Zers and some young millennials also have a positive view of the technology behind crypto, feel disconnected from traditional investments, and have found a sense of community among other crypto traders.
Crypto Investor Habits
According to our results, most crypto investors check their investments on a weekly basis. However, 50% of Gen Zers were most likely to check the market daily.
We also found a correlation between the amount of money people had invested in crypto and how well they slept each night. Those who’d invested less than $1,000 reported fewer hours of sleep per night than those with more than $1,000 invested. Perhaps those with less invested are kept up at night thinking about how to increase their holdings or worrying about a market dip that may cause losses in their current holdings.
People who weren’t invested in cryptocurrency appeared to enjoy a better night’s sleep. Almost 70% of non-investors reported good to excellent sleep quality versus around 63% of those who did invest in crypto. Here are some of the reasons why crypto investors are being kept awake at night:
- Stressing about a market crash
- Learning more about investments in general
- Worrying about the disappearance of a cryptocurrency
- Worrying about missing out on the next big thing
- Looking into investing advice
- Learning more about cryptocurrencies
Crypto is a digital currency that is a very speculative and volatile investment. The crypto market can experience considerable, rapid fluctuations in value, causing investors to gain or lose a lot of money quickly. Checking market trends and investments too frequently or investing money you don’t have to spare can lead to increased anxiety or stress and can, perhaps, even affect your mental health and quality of sleep.
If you invest smartly with money you can afford to lose, you have a better chance of being able to trade crypto and sleep at night. It may also help you to set investing rules or limits for yourself or to use a holding strategy. Known as HODL, a holding strategy is when you buy crypto (secure a position) and hold onto it for an unspecified amount of time. The idea is to buy low and then wait until there is a peak to sell. This method eliminates day trading, reduces checking frequency, and lessens investing stress.
Risks of Crypto Investing
Investing in crypto is a risky move that may or may not pay off in the end. The constant price fluctuations and decentralized nature of these digital currencies are causes for concern. Baby boomers were the most concerned about their crypto assets. Perhaps they feel this way because their investments are already affecting their retirement – or will so imminently.
How much money people had invested also raised their level of concern. People with investments of $1,000+ were more worried about their crypto assets than those who had invested less than $1,000. We also discovered that crypto investors were more likely to be stressed than traditional investors if all their investments were lost.
Why do people invest in crypto if it’s so risky? Well, to start, many see digital currency as the money of the future. Investing early while values are low could pay off if predictions about crypto become true. People want to get into the market now before it becomes mainstream and too expensive to purchase.
The highly sophisticated and secure technology used to facilitate the buying and trading of crypto is another reason why people trust their money to this type of investment. When you invest in crypto, you don’t have to worry about inflation or bank failures.
Health and Relationship Concerns
Can crypto investing affect more than your sleep? We concluded our study by examining the effects of crypto trading on investors’ mental health and relationships. Breaking it down by type of cryptocurrency, Bitcoin (BTC) holders were both the least anxious and least depressed in comparison with other crypto holders. Ripple (XRP), Stellar (XLM), and Polkadot (DOT) traders reported feeling the most anxious and depressed.
Whether respondents invested in crypto or not didn’t appear to have much effect on their satisfaction with co-worker relationships. The only significant difference was that non-crypto investors were more likely to say they were extremely satisfied with their co-worker relationships. Greater differences were visible when it came to personal connections. Crypto investors were less satisfied with spousal and parent/child relationships than those who didn’t invest in Crypto.
Due to its 24/7 nature, crypto trading can become an addiction for some people in much the same way as gambling. According to recent research, the extreme highs and lows of investment markets can cause mental health issues such as stress, anxiety, and depression. These things not only affect sleep but personal and work relationships, too. If you find yourself struggling from any of these issues, please reach out to a health care professional today.
The cryptocurrency market is a risky venture that many people participate in for a variety of reasons. Some Americans are looking to save for retirement, while others want to make extra cash quickly. Trading too much and too often can lead to negative psychological effects including strained relationships and a loss of sleep or reduced sleep quality. Let us help mitigate the effects of crypto investing on your nightly rest. Check out our mattress reviews and other sleep resources today.
Methodology and Limitations
We surveyed 1,014 people about their sleep and investment habits. 62% of our respondents identified as men, and 38% identified as women. Additionally, our respondents ranged in age from 20 to 77, with 69 baby boomers, 243 Gen Xers, 668 millennials, and 34 Gen Zers.
One limitation of this study is the small number of Gen Z respondents. With more respondents in this generation, we could gain a more accurate insight into this population. Additionally, data were not tested for any statistical significance and serve only as an exploration of the relationship between sleep and cryptocurrency investment.
Fair Use Statement
Regardless of your sleep quality or your crypto investment habits, we hope that you found this information useful. You are free to use this information for noncommercial purposes as long as you link back to this article as the original source.