Traders Union research: 58% of crypto traders rely on social media

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How retail investors trade in the crypto market

Despite strong interest in cryptocurrencies, retail investor behavior remains largely intuitive. According to Traders Union research, most traders enter the market after prices have already risen, rather than during the early stages of a trend. Specifically, 64% of respondents open positions after price increases, while only 23% buy during declines.

The analysis shows that such behavior directly impacts overall performance. Late entries limit profit potential, while decisions based on current price movements make trading dependent on short-term volatility. As a result, investors often buy near market highs and exit positions at unfavorable moments.

Another key factor is the source of trading signals. More than half of respondents (58%) rely on social media, while only 21% use technical analysis and 14% use fundamental analysis. This indicates that external sentiment often outweighs independent analysis in decision-making.

Why retail traders lose money

The research shows that the core issue for retail investors is not only market volatility but also behavioral factors. Many traders make decisions driven by emotions, including fear of missing out (FOMO) and reluctance to realize losses. As a result, trades are often opened after price increases and closed at unfavorable times.

The problem is compounded by weak risk management. Only 37% of respondents use stop-loss orders, while the majority — 63% — trade without predefined exit levels. This makes trading more vulnerable to sharp market fluctuations and increases the likelihood of significant losses.

During market downturns, investor behavior becomes even more defensive. According to the research, 49% of participants sell assets during price declines, indicating a tendency to reduce losses even at the expense of long-term strategy. This confirms that in volatile conditions, retail traders tend to act situationally rather than systematically.

How the research was conducted

The research was conducted by Traders Union in 2026 using a quantitative online survey based on the CAWI (Computer-Assisted Web Interviewing) methodology. A total of 1,200 active retail crypto traders from North America, Europe, and Asia participated in the survey.

To improve accuracy, the survey results were compared with institutional research from sources including BIS, JPMorgan, and Coinbase Institutional, allowing for the identification of consistent behavioral patterns and validation of key findings.

It is worth noting that in March, Traders Union received the “Best Trading Community and Financial Network in the World 2026” award at the World Business Outlook Awards.

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