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

Benjamin Johnson, Tianze Sun, Daniel Stjepanović (), Giang Vu and Gary C. K. Chan
Additional contact information
Benjamin Johnson: National Centre for Youth Substance Use Research, The University of Queensland, Brisbane, QLD 4072, Australia
Tianze Sun: National Centre for Youth Substance Use Research, The University of Queensland, Brisbane, QLD 4072, Australia
Daniel Stjepanović: National Centre for Youth Substance Use Research, The University of Queensland, Brisbane, QLD 4072, Australia
Giang Vu: National Centre for Youth Substance Use Research, The University of Queensland, Brisbane, QLD 4072, Australia
Gary C. K. Chan: National Centre for Youth Substance Use Research, The University of Queensland, Brisbane, QLD 4072, Australia

IJERPH, 2023, vol. 20, issue 10, 1-16

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.

Keywords: mental health; cryptocurrency; financial trading; gambling; addiction (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1660-4601/20/10/5833/pdf (application/pdf)
https://www.mdpi.com/1660-4601/20/10/5833/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijerp:v:20:y:2023:i:10:p:5833-:d:1148087

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().