Shifting Investment Trends as More Young People Enter Crypto Markets

Over 30% of crypto in the UK is owned by millennials and Gen Z as the younger generations look to do things their way.

Cryptocurrencies were once seen as a niche investment, but younger generations are proving they don’t have the same hesitancy as their older counterparts when it comes to crypto.

As more of Gen Z comes of age, more are flocking to crypto options rather than traditional investments. The crypto revolution is about more than just the lure of quick profits; instead, it goes to the heart of the younger generation’s digital-first mindset. Those wanting to be at the centre of technological innovation and financial revolution consider cryptocurrency a serious option. But why is this, and what does it all mean?

The allure of digital assets

Undoubtedly, one of the most significant reasons younger people put their money into crypto is its technological empowerment. Crypto is a decentralised currency not controlled by a single institution such as a government or bank. Instead, crypto control is spread out over several networks. Its decentralised nature appeals to a generation that values control over their financial futures and distrusts the institutions that have underpinned the entire financial sector for centuries.

This isn’t just youthful rebellion; for many, it completely rejects the old way of doing things. Those in the Western world who are now among crypto’s biggest supporters grew up in an age marked by the 2008 financial crisis, triggered by traditional banks failing for numerous reasons. This led to an era of recessions and austerity that many countries still count the cost of.

In addition, the blockchain technology that underpins most cryptocurrencies represents an innovative and transparent way of conducting transactions. Every transaction is recorded on a public ledger, meaning there is high accountability and security. For young people who have grown up in an era of information transparency, blockchain’s ability to provide decentralised trust and verification is a major selling point.

Investment opportunities in a digital world

Of course, the most obvious incentive for cryptocurrency investors is the well-publicised potential for high returns. Gen Z has heard the stories of the early Bitcoin adopters who became millionaires thanks to relatively modest investments. Like the 19th-century gold rush led to those seeking fortune travelling across countries and continents, younger people are now seeking their fortune through their laptops or phones.

Crypto is a notably volatile investment. While that has been the source of caution for more experienced investors, there is not the same level of hesitancy for those from the digital generation. Starting with smaller investment pots to play with, younger investors are often willing to risk some losses in pursuing high rewards, especially if they don’t have mortgages or children to worry about yet.

This contrasts traditional investments such as stocks and bonds, which can require a more substantial outlay to see even modest or meaningful returns but have provided a secure financial future for many. Since crypto can be bought in fractions, investors can still put small amounts of money into something they believe can deliver a profit. This has democratised the industry, giving more people a chance to invest than ever before. There are also more logistical opportunities to invest without trading restrictions when a stock exchange is open since crypto is available 24/7.

Young people are accustomed to the rapid pace of the digital world, so constantly shifting values and dynamics in the crypto world don’t hold the same concern for them. Not only is crypto a currency to them, but it’s also an asset with considerable room for growth. Many young investors don’t want to miss out.

It’s also never been easier to get into crypto thanks to platforms such as Coinbase and Binance, which make trading crypto straightforward.

The desire for financial independence

Social media has also brought about the rise of grind culture, which is hugely popular among Gen Z. Influencers – like Vitalik Buterin, Anthony Pompliano, and CryptoWendyO – are flexing their entrepreneurial muscle, and the rewards that can go with it on platforms such as TikTok are not something that existed for previous generations.

Young investors see crypto as part of this aspirational world as they seek financial independence to pursue a life outside the traditional structures of higher education and employment. 42% of Gen Z investors now own crypto, which is almost four times higher than the 11% of investors from older generations. Crypto is a way to put money to good use for investors without necessarily waiting decades to see returns like previous generations who had to wait until retirement.

The rise of crypto has also mirrored the rise of innovation in other online industries, including iGaming. Financial independence allows this new generation of investors to do what they want with their money, and many are turning to gaming as a way to stay entertained. Visits to sites that have established themselves as a leading source, such as the highly trusted newcasinos.com, help players find various gaming options, from video slots to casino classics, to suit all tastes. This has become the norm for a tech-savvy generation looking to use their money to pursue entertainment like never before.

There’s also a growing interest from younger generations in decentralised finance, which crypto is at the heart of. This new industry can allow people to buy and sell crypto and access services such as lending and borrowing without relying on traditional banks. This gives young investors greater empowerment and control over their financial futures.

The idea that this new decentralised way of thinking in finance could ultimately change the world is also attractive to many. There’s excitement about being part of something new and seismic; today’s young crypto investors could be tomorrow’s decision-makers, leading to real change in the finance industry and beyond.

Cryptocurrencies and social movements

Crypto is also associated with wider social movements and activism, leading many younger investors to utilise and support them. Cryptocurrency is a disruptor in the financial sector around the globe, attracting the younger generation looking to make real change in the world. There’s a social conscience to many crypto investors looking to sidestep the institutions that have presided over decades of economic inequality and environmental catastrophe.

Crypto allows those not served by traditional banks worldwide to access financial services that were off-limits to them before. This idea that crypto can provide a more equitable and inclusive financial system resonates with a generation looking to upend traditions and ensure a more equal future for all.

The privacy offered by cryptocurrency is an important factor for younger investors who want to limit huge corporations’ and governments’ control over their lives. Personal autonomy is something younger generations are demanding, and unlike previous generations who had to rely on traditional financial institutions, crypto offers a solution to that issue.

The role of social media and online communities

While social media has offered a glimpse into flashy lifestyles and success stories from crypto and beyond, it offers a more in-depth space for like-minded people to share their interests.

Reddit and YouTube have popularised crypto to the younger audiences now investing in it. Real communities on these platforms have sprung up, offering tips, analysis and real-world experiences regarding investing that aren’t available in traditional media, which is still obsessing over stock markets.

All this provides a sense of community, making it easier for young investors to get involved. If they have a question or a concern, they can take it to their peers, which is likely to be addressed in some manner, giving them peace of mind before any money goes anywhere.

Social media influencers with growing voices regarding crypto have also played a part in popularising it to a younger audience. Serious business operators with big online followings, such as Elon Musk and Mark Cuban, have openly discussed their experiences with crypto, legitimising it in the eyes of many as a viable option for investment.

The future of cryptocurrency investment

The role of cryptocurrency in young people’s investment strategies will likely only grow in the coming years. As blockchain technology improves and is adopted by more industries, crypto could become an integral part of the global financial system driven by this younger generation of investors.

However, caution is needed, given the volatile nature of crypto. The potential for high returns for modest investments will attract investors no matter the investment, but the market remains unpredictable and should be treated with extreme care. The fact that so many young investors have turned to crypto suggests that a fundamental change has already occurred and that crypto is here to stay for the long term.