Web3 Knowledge and AI Guidance: Experimental Evidence from Crypto Markets

Abstract

We examine how Web3-specific education and AI-generated investment guidance affect retail investor performance in crypto markets. In a twelve-month randomized controlled trial with 3,948 participants trading real tokens on a simulated CEX, investors were assigned to a control group, Web3 education, AI recommendations, or both. Measured by raw return, alpha, and portfolio diversification, both interventions improved performance, with the combined treatment producing the largest gains. Education effects accumulated over time, AI effects were immediate, and benefits were greatest for less experienced investors and on high-complexity news days. A portion of gains persisted after support was withdrawn, especially for education-based treatments, suggesting lasting benefits from knowledge acquisition alongside real-time decision support.