Study: Low-income Crypto Investors Suffer the Heaviest Losses

Crypto has been hailed as a wealth-building opportunity, but the truth is clear: not everyone profits equally. By conducting a survey on 1023 American crypto investors, we discover that age, income, timing, strategy, and even portfolio allocation all play a decisive role in an investor’s performance. Some groups are far more likely to walk away with profits, while others consistently lag behind. 

We conducted a survey of 1023 American crypto investors using Prolific to determine their demographics and crypto investing preferences.

The survey was administered on September 5th.

The data makes one thing clear: older investors see better results.

• Best performers: Gen X, averaging +24.82%, lead all age groups with disciplined strategies and long-term conviction.
• Worst performers: Gen Z, despite being the most internet-native generation, are the worst crypto investors with only +16.24% PnL. Their tendency to chase hype cycles drags down results.

Millennials sit in the middle at +20.69%, showing that age brings incremental improvements in decision-making and outcomes.

Income doesn’t just dictate how much you can invest – it also shapes outcomes.

The trend is steady: the more you earn, the higher your crypto profits. 

Investors earning over $150k dominate, with the highest PnL at +27.52%. Meanwhile, low-income investors earning under $30k post the lowest PnL at +17.70%.

Wealthier investors can take bigger, longer-term bets, while lower-income investors often cash out early, limiting upside.

The income divide becomes starker when measuring losses.

More than 1 in 3 low-income investors are losing money. Compare that to just 8.51% of investors earning over $150k. The wealthy can stomach downturns and avoid panic selling, while lower-income groups are pressured into bad exits or ill-timed entries.

The most important factor in crypto investing may be when you started.

Investors who entered before 2017 enjoy an average return of 37.29%, the highest of any group. They bought Bitcoin under $1,000 and Ethereum under $100—life-changing entry points. Even those who entered in 2017–2018, during Bitcoin’s first major bubble, saw strong average returns of 34.43% by holding through cycles.
Meanwhile, newcomers since 2024 barely scrape profits at 10.13%, showing how difficult it is to buy late and still win big.

Hype doesn’t equal profit.

Memecoin traders average 18.61% returns, far below the 23.30% for those avoiding them. Viral tokens create buzz but rarely wealth. The lesson is simple: chasing memes may be fun, but it underperforms solid strategies.

Motives matter. Those chasing fast profits perform the worst.

The numbers are brutal: investors aiming for rapid flips average just +6.40%, the lowest of any group. By contrast, those using crypto as a hedge or store of value enjoy the highest average PnL at 45.68%. This confirms that chasing quick wins almost guarantees weak results, while long-term conviction produces the strongest gains.

How much you allocate also impacts results.

Heavy hitters with >75% allocation enjoy the highest average PnL at +28.46%. Close behind are those with 50–75%, at +27.91%. Small dabblers investing