Insights on Crypto Investors from a German Personal Finance Management App

Fabian Nemeczek () and Daniel Weiss
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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

JRFM, 2023, vol. 16, issue 4, 1-38

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.

Keywords: crypto ownership; personal finance management app; transaction data; behavioral traits; financial advice (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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