In a world where social media and peer pressure reign supreme, it’s no surprise that the fear of missing out (FOMO) and the influence of friends are driving forces behind the decision to invest in cryptocurrency.

According to a recent survey conducted by the United States Financial Industry Regulatory Authority (FINRA) Investor Education Foundation, 31% of new cryptocurrency investors said they were encouraged to take the plunge by friends. It seems like word-of-mouth marketing is alive and well in the crypto world, with people putting their trust in their inner circle.

But it’s not just friends that are driving crypto adoption. The survey found that FOMO was also a major factor, with 27% of respondents citing it as their reason for investing in cryptocurrency. This fear of missing out on potential gains is not uncommon, especially with the recent surge in crypto prices.

Despite the influence of friends and FOMO, the survey also found that a significant portion of new investors (29%) were motivated by a desire to diversify their investments. This is a smart move, as diversification can help spread risk and protect against market volatility.

It’s clear that new investors are coming into the crypto space with a variety of motivations, but what is important is that they understand the risks involved. Cryptocurrency is a highly volatile and speculative asset class, and investors need to be prepared for the possibility of significant losses.

FINRA has urged new investors to take the time to educate themselves on the risks and benefits of cryptocurrency before investing. This includes researching the specific cryptocurrencies they’re interested in, as well as understanding the technology behind them.

As crypto continues to gain mainstream attention, it’s likely that we’ll see more and more people jumping on the bandwagon. But it’s important that investors approach this new asset class with caution and a level head. As the old saying goes, “measure twice, cut once.”

In conclusion, the survey by the United States Financial Industry Regulatory Authority (FINRA) Investor Education Foundation shows that the influence of friends and FOMO are key factors that have pushed newbie investors to buy cryptocurrencies in 2022. While investing in cryptocurrency can be exciting, it is important to approach it with caution and research thoroughly before investing. It’s crucial to educate oneself about the risks and rewards of investing in this relatively new asset class. As always, it’s essential to diversify one’s investments and not put all of one’s eggs in one basket. Only time will tell whether the current crop of investors will be successful in their investments, but one thing is clear: the crypto space is rapidly evolving, and it’s important to stay informed and up-to-date with the latest developments.