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Insights on Crypto Investors from a German Personal Finance Management App

Author

Listed:
  • Fabian Nemeczek

    (Faculty of Economics and Business Administration, Goethe University Frankfurt, 60629 Frankfurt, Germany)

  • Daniel Weiss

    (School of Business & Economics, Freie Universität Berlin, 14195 Berlin, Germany)

Abstract

This study investigates the socio-economic characteristics, behavioral preferences, and consumption of individuals who own crypto-assets. Our empirical analysis utilizes data from a German personal finance management app where users connect their bank accounts and depots. We conducted a survey and elicited behavioral factors for financial decision-making. By combining survey with account and security account data, we identify crypto investors’ preferences for financial decision-making and financial advice. Our results suggest that, in particular, students or self-employed, young, and male individuals who are risk-seeking and impatient are more likely to have invested in crypto-assets. Most crypto owners have less experience with financial advisory. They see it as too time-consuming and qualitatively poor, and instead, they prefer to decide on their own as they have self-reported high financial literacy. Investigating their consumption in more detail we conclude that crypto investors more often spend on travelling, electronics, and food delivery and less on health. Our findings suggest policymakers in identifying high-risk consumers and investors, and help financial institutions develop appropriate products.

Suggested Citation

  • Fabian Nemeczek & Daniel Weiss, 2023. "Insights on Crypto Investors from a German Personal Finance Management App," JRFM, MDPI, vol. 16(4), pages 1-38, April.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:4:p:248-:d:1126736
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    References listed on IDEAS

    as
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    Cited by:

    1. Rafael Ramos Tubino & Rémy Cazabet & Natkamon Tovanich & Céline Robardet, 2023. "Temporal and Geographical Analysis of Real Economic Activities in the Bitcoin Blockchain," Post-Print hal-04188062, HAL.
    2. Rafael Ramos Tubino & Remy Cazabet & Natkamon Tovanich & Celine Robardet, 2023. "Temporal and Geographical Analysis of Real Economic Activities in the Bitcoin Blockchain," Papers 2307.08616, arXiv.org.

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