Cognitive Reflection in Cryptocurrencies Traders

Cognitive reflection is the ability to override impulsive and intuitive decisions in favor of more deliberate and thoughtful ones. Cognitive reflection has gained attention in the financial industry and trading, but little is known about this ability in crypto traders. We assess the relationship between cognitive reflection and various aspects of crypto trading, including general factors (i.e., experience, day trading, and crypto category), psychological factors (i.e., fear of missing out and impulsivity), and sociodemographic variables (i.e., age, gender, and education). Our analysis demonstrates significant positive correlations between cognitive reflection and experience, as well as significant negative correlations between cognitive reflection and impulsivity. Greater trading experience was associated with more reflective decision tendencies, consistent with increased familiarity with market dynamics and learning processes that may accompany sustained engagement. Such experience often leads individuals to consider alternative actions and to rely less on hasty judgments, a pattern consistent with observed associations between trading experience, cognitive reflection, and impulsivity.