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

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  • Benjamin Johnson

    (National Centre for Youth Substance Use Research, The University of Queensland, Brisbane, QLD 4072, Australia
    School of Psychology, 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
    School of Psychology, 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
    School of Psychology, 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)

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.

Suggested Citation

  • Benjamin Johnson & Tianze Sun & Daniel Stjepanović & Giang Vu & Gary C. K. Chan, 2023. "“Buy High, Sell Low”: A Qualitative Study of Cryptocurrency Traders Who Experience Harm," IJERPH, MDPI, vol. 20(10), pages 1-16, May.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:10:p:5833-:d:1148087
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    References listed on IDEAS

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