“Buy High, Sell Low”: A Qualitative Study of Cryptocurrency Traders Who Experience Harm

Abstract

The constant, substantial price fluctuations of cryptocurrency allow traders to engage in highly speculative trading that closely resembles gambling. With significant financial loss associated with adverse mental health outcomes, it is important to investigate the impact that market participation has on mental health. Therefore, we conducted interviews with 17 participants who self-reported problems due to trading. Thematic analysis was conducted revealing themes: (1) factors in engagement, (2) impacts of trading and (3) harm reduction. Factors in engagement captured factors that motivated and sustained cryptocurrency trading. Impacts of trading outlined how cryptocurrency trading positively and negatively impacted participants. Harm reduction described methods participants employed to reduce mental distress from trading. Our study provides novel insights into the adverse impacts of cryptocurrency trading across multiple domains, especially mental health, relationships and finances. They also indicate the importance of further research on effective coping strategies for distress caused by financial loss from trading. Additionally, our study reveals the significant role social environments play on participants’ expectations and intentions regarding cryptocurrency trading. These social networks extend beyond real-life relationship to include celebrity and influencer endorsement. This encourages investigation into the content of cryptocurrency promotions and the influence they have on individuals’ decision to trade.

Unveiling the Confirmation Factors of Information System Quality on Continuance Intention towards Online Cryptocurrency Exchanges: The Extension of the Expectation Confirmation Model

“…For instance, a study by Johnson et al [12] described the risks associated with cryptocurrency trading by explaining the harmful aspects of speculative trading. Johnson et al [12] used a qualitative approach and provided insights regarding the conditions leading the users to stay engaged in trading, the positive and adverse impacts of trading on cryptocurrency traders, and the ways cryptocurrency traders cope with harm reduction. A recent study by Aleksandr et al [13] was also related to the risk and safety of online cryptocurrency platform users.…”