8 Cognitive Biases to Watch For in Your Crypto and Web3 Adventures

How to identify and mitigate against debilitating cognitive biases.

While we — human beings — like to think of ourselves as rational creatures, the truth is we are anything but.

We are prone to over 100 cognitive biases that can shape our perceptions, beliefs, and decisions.

As one might imagine, the weird and wonderful world of crypto and web3 is not immune from said biases.

Becoming aware of these biases can be a powerful step towards making better decisions, and investing your time, money, and energy more wisely.

I’ve unpacked eight cognitive biases and mitigants that web3 builders, investors, and users, could benefit from.

If you’ve got some alternative mitigants to address these biases, I’d love to hear from you in the comments.

1. Echo chamber effect

The echo chamber effect occurs online when a harmonious group of people amalgamate and develop tunnel vision. Participants in online discussions may find their opinions constantly echoed back to them, which reinforces their individual belief systems due to the declining exposure to others opinions.