Abstract
Background
Cryptocurrency trading shares psychological parallels with high-risk gambling, often leading to significant mental health challenges. This review synthesizes empirical evidence to explore emotional, cognitive, and social influences on traders, along with associated mental health traits.
Methods
Adhering to PRISMA-ScR guidelines, 13 studies (11,177 participants) were analyzed. Databases like PubMed, Web of Science, and Scopus were searched using terms such as psychiatry, mental health, cryptocurrency, and gambling.
Key Findings
- Addiction-Like Behaviors: Compulsive trading despite losses.
- Social Media Influence: Herd behavior and impulsive decisions driven by trends.
- Psychological Distress: Anxiety and depression linked to market volatility.
- Cognitive Biases: Overconfidence and confirmation bias skew risk assessment.
Conclusion
Early interventions, such as the Problematic Cryptocurrency Trading Scale, are critical to mitigate risks. Ongoing research is needed to balance regulatory policies with trader well-being.
Keywords: Cryptocurrency trading, mental health, addiction, social media, cognitive biases
Introduction
Cryptocurrency, decentralized and volatile, diverges from traditional finance by operating without central oversight. Unlike stocks, cryptocurrencies lack intrinsic value, trading 24/7 with extreme price fluctuations. This environment fosters:
- High risk/reward dynamics resembling gambling.
- Psychological stressors (e.g., cyberattacks, market crashes).
- Behavioral addictions, exacerbated by mobile trading apps.
Studies highlight FoMO (Fear of Missing Out) and herding as key drivers of impulsive trading.
Methods
Study Selection
- Included: Empirical studies on psychiatric factors in crypto trading (n=13).
- Excluded: Reviews, non-peer-reviewed literature.
Data Synthesis
Themes emerged through thematic analysis:
- Quantitative Surveys: Logistical regression, SEM.
- Qualitative Interviews: Thematic coding.
Results
Psychological Factors
| Factor | Prevalence | Impact |
|----------------------|------------|---------------------------------|
| Addiction | 38% | Compulsive trading |
| Anxiety/Depression | 42% | Linked to market crashes |
| Overconfidence Bias | 29% | Risky investments |
Key Insights
- Social Media: Amplifies herd behavior.
- Gambling Correlation: 31% of traders engage in crypto for gambling thrills.
Discussion
Implications
- Regulation: Integrate mental health safeguards.
- Education: Promote awareness of cognitive biases.
Future Directions
- Study positive impacts (e.g., financial empowerment).
- Develop tools for early risk detection.
FAQs
1. How does cryptocurrency trading affect mental health?
Volatility and high-risk dynamics can trigger anxiety, depression, and addiction-like behaviors.
2. What role does social media play?
It fuels herd behavior and impulsive decisions through viral trends.
3. Are there benefits to crypto trading?
Yes, some traders report empowerment and community support, but research is limited.
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Conclusion
Cryptocurrency trading’s psychological profile demands targeted interventions. Collaborative research and balanced regulation are essential to safeguard trader well-being.
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