Retail Investor

Definition ∞ A Retail Investor is an individual who buys and sells securities for their personal account, rather than for an organization or on behalf of others. These investors typically trade in smaller volumes and often have less experience or fewer financial resources compared to institutional investors. In the digital asset market, retail investors represent a significant portion of participants, often engaging with cryptocurrencies through easily accessible platforms. Their participation is a driving force behind market liquidity and adoption.
Context ∞ Protecting retail investors in the digital asset space is a primary concern for regulators due to the market’s volatility, complexity, and prevalence of scams. Discussions focus on enhancing disclosures, combating misleading promotions, and ensuring platforms offer adequate security and transparency. The ongoing challenge involves educating individual investors about the risks while enabling access to innovative digital financial products.