Crypto Is the Most Common Investment Held by Gen Z Investors

Editorial Team

Crypto Is the Most Common Investment Held by Gen Z Investors

Gen Z may be young, but it’s already gaining financial independence. Individuals between 18 and 25 years old are the most investment-savvy of all and have been lucky regarding free education and high salaries. Contrary to popular opinion, they don’t squirrel away all their pennies. Even if Zoomers know many things about finance, they don’t have deep knowledge.

Cryptocurrency, of which examples include Ethereum and Bitcoin, is the most common investment held by Gen Z investors, which doesn’t come as a surprise given that Gen Zers are called digital natives – for their entire lives, they’ve been surrounded by technology. A recent study by Finra-CFA Institute showed that 55% of individuals aged 18-25 actively invest in cryptocurrency, meaning there’s a clear correlation between age and the likelihood of buying digital assets. 

Crypto Is the Preferred Gateway into Financial Markets

Most American Gen Zers hold some kind of investment, many having acquired digital assets before the age of 21. It’s believed that the average Gen Z investor has $4,000 buried in investments. Younger generations tend to have ample amounts of free time in their day-to-day life, which enables them to do thorough research and identify the best investment opportunities. Additionally, they can afford to take more risks. Besides the ability to invest small amounts of money, individuals between 18 and 25 years old are drawn to the popularity of cryptocurrency, each having widely different preferences as far as choosing digital assets is concerned.

Mobile Apps Rank Highly as The Favorite Method of Managing Investments

The savvy Gen Z investors take advantage of mobile technology to break into the financial markets. To be more precise, Gen Zers use apps to buy, sell, and store different types of digital assets, monitor market trends and price charts, and manage their investments (i.e., see how they’re performing). Apps for top cryptocurrency exchanges are available for both Android and iOS devices. As they’re web-based, the data is stored on cloud servers or blockchain servers to ensure better security and scalability. Investors can do everything from the comfort of their homes without needing to meet with a financial advisor.

Gen Z Investors Consult Various Information Sources to Make Sound Financial Decisions 

Social media channels such as Instagram and YouTube have become popular places for many firms to disseminate information by reaching investors directly. The aim is to reduce uncertainty about current and future investment opportunities, reducing information asymmetry that exists between management and market participants. Individuals aged 18-25 learn about investing and finances mainly through social media, so they’re able to make informed decisions and avoid common scams. To develop skills where mistakes don’t cost an arm and a leg, Gen Z investors leverage web searches by typing one or more keywords. Back on topic, Zoomers spend at least four hours a day on social media; some spend even more time than that.

Social media plays a key part in triggering FOMO (or the fear of missing out). As you already know, FOMO is a type of anxiety – it’s difficult, if not impossible, to shut down the rumination so that your mind can calm down. It’s not exclusive to social media, but browsing social media sets you up for experiencing it. More often than not, it leads to irrational decisions to buy or trade cryptocurrency without conducting due diligence. The Finra-CFA Institute study indicates that Gen Zers tend to be swayed by suggestions from family members, meaning there’s a social element present that’s not evident in the beginning.

Not Diversifying Sufficiently Means Gen Z Investors Put Their Assets at Risk of Loss

There’s potential for loss in value of the investment portfolio when capital is placed in a single asset class. Gen Z’s somewhat high concentration in cryptocurrency is a reason for concern if investors don’t take into account managing risk. There’s a considerable amount of money that can be earned by spreading investments across different asset classes, such as mutual funds or exchange-traded funds. Gen Z views cryptocurrency as less risky than stocks and options; of course, they would start feeling uncomfortable if their portfolio went down any amount. Diversification is a long-term strategy, so patience is of the essence.

It Takes a Very Self-Aware Generation to Know What They Don’t Know

Newer and younger investors are entering the financial markets, so the demand for digital investing will most likely continue to grow. Investing in digital assets unlocks opportunities for individuals of all ages, enabling them to start small and learn as they go. Simply put, the traditional barriers to investing have been eliminated. Even if Gen Zers are interested in personal finance and investing, they’re only at the beginning of the journey to financial independence. There are several places where they can consume information, such as social media, podcasts, etc., but Gen Z investors lack advanced knowledge.

By addressing educational gaps, Zoomers can get a better understanding of finance and secure their way towards independence. Gen Z is the most video-forward generation as regards learning about personal finance. Unfortunately, they’re intimidated by complex and sophisticated investing principles. When fear doesn’t prevent youngsters from investing, confusion does. The number of products and services available for simplifying the investment process makes it seem more complicated than it really is. Numerous Gen Zers aren’t investing because they have no idea where to start, so they prefer not to be involved. What’s certain is that Gen Z is moving too fast (and too much on their own).


To sum up, the Gen Z population is diverse and has good knowledge of modern technology, especially computers. Cryptocurrency plays an important role in investors’ portfolios, especially those with a higher tolerance for risk. Even if they’re not completely confident, Gen Zers are big in investing, with the number being higher for men. The advent of trading platforms translates into the fact that investors can invest in cryptocurrency in real-time, making well-informed decisions to maximize their returns. Nevertheless, debt balances are higher than that of older generations as they have limited access to various types of credit.