for me there are three reasons why they do not want to invest in crypto
1. they have not known crypto
2. they are not interested
3. they are afraid to invest after losses
I agree with you, most people are afraid to invest in Crypto and now many ICO projects are scam so investors are losing their money because they are wrong in choosing the projects they invest.
You are right except your point no. 2. I want to add more. People have:
1. Investment phobia
2. Cognitive Dissonance
3. Lack of knowledge
4. Risk avoidance tendency
5. Lack of prediction ability