One in Six Drop Out: The Harsh Reasons Why People Give Up on Crypto Investing

Clabo Inc. conducted a "Survey on Troubles Leading to Difficulty in Continuing Investment and Asset Loss" among 746 experienced cryptocurrency investors.

The survey found that 17.8% of investors (about 1 in 6) have experienced giving up on cryptocurrency investment due to incidents such as asset loss or security breaches.

The trouble rate was particularly high for those in their 20s, at 57.4%. Furthermore, it has become clear that active investors who engage in both short-term trading and long-term holding are more likely to face issues, possibly due to the increased complexity of management.

This report details the harsh reality that the success rate of recovering lost assets remains at a mere 28.7%, and explores the challenges of continuing cryptocurrency investment as seen from analysis by age group and investment style.

## The Reality: 17.8% of Investors Quit After Losing Crypto Assets

In cryptocurrency operations, troubles like asset loss and theft are not someone else's problem.

This survey revealed that about one in six experienced investors have given up on cryptocurrency investing altogether after facing such troubles. Behind the glamorous profits lies this stark reality.

The reasons why cryptocurrency investors are unable to continue investing are not limited to market crashes. Asset loss due to wallet mismanagement or security breaches can shake the very foundation of their investment activities.

## Only About 30% Recover from Loss

Losing crypto assets doesn't always mean it's a total loss. About 28.7% of affected investors reported that they were able to recover their crypto assets. There are many cases where technical support or exchange responses helped avoid the worst-case scenario.

However, the path to recovery is not smooth. Proper management of wallet recovery phrases and thorough security measures are thought to be the deciding factors in these numbers.

## Psychological Factors Behind Quitting

Why do so many cryptocurrency investors leave the market after experiencing trouble? Including the 10.1% who are still dealing with issues, the mental burden on these investors is immeasurable. More than the financial loss, it is their own mismanagement and a sense of distrust that erodes their motivation to invest.

## 57.4% of 20-Somethings Experience Trouble

The most striking finding of this survey was the plight faced by cryptocurrency investors in their 20s. The rate of having "given up" on crypto investment due to troubles reached 57.4%, the highest among all age groups. While interest in cryptocurrency is very high, this highlights the reality that practical knowledge of security management and wallet operation is not sufficiently widespread.

## Mid-Career investors in their 30s and 40s also at concerning levels

At 39.1% for those in their 30s and 29.8% for those in their 40s, the trouble rate is not low for mid-career investors either. This generation, in their prime working years, often manages their crypto investments amidst busy daily lives, and may not have the luxury of time to dedicate to risk management.

## Rate is low for 60s at 12.3%, cautious management protects crypto assets

On the other hand, the trouble experience rate tends to decrease with age. The rate for those in their 60s was only 12.3%, a gap of about 4.7 times compared to investors in their 20s. This difference may be the result of the caution cultivated through years of life experience being applied to the unfamiliar territory of cryptocurrency.

## 'Both' Style Most Common at 72.5%

The survey showed that the style of conducting both short-term trading and long-term holding in cryptocurrency investment had the highest trouble rate at 72.5%. Employing multiple operational methods simultaneously means more frequent wallet operations and connections. This complexity in management becomes a breeding ground for trouble.

## 'HODLers' Can Relatively Suppress Crypto Risks

In contrast, investors who hold their cryptocurrency for the long term, the so-called "HODLers," had a trouble experience rate of 44.2%. This is a gap of about 28 percentage points compared to the "both" style, making it clear that the difference in operational method is directly linked to the level of risk.