Are millennials sleeping crypto giants?

Millennials are a vast contrast from the generations before them. From hailing rides, booking vacations and hotels, to ordering food; this new generation embraces the newest technology with vigor. It makes sense that they would have as much faith in cryptocurrency exchanges as traditional financial institutions.

Millennials have a drastically different outlook on what they expect from their investment experience.

Millennials have also proven themselves to be an interesting crowd when it comes to personal finance. Surveys show that nearly half of millennials in the U.S would rather own Bitcoin over stocks. A survey, performed by the crypto giant eToro, has revealed that 71% of millennials would invest in crypto if offered through traditional financial institutions. This generation of market movers have very different expectations when it comes to their investment experience and outcomes. They do not adhere to traditional rules or reference points, nor the patience for bureaucracy associated with traditional investments.

As the cryptocurrency craze continues, millennials will heavily invest in various forms of digital currencies. A recent study, from the National Institute on Retirement Security (NIRS), revealed that millennials are even expanding their retirement portfolios, such as 401(k) or IRA, into cryptocurrencies.

Despite Bear Market, Cryptocurrency Adoption Nearly Doubled In 2018

In the last year, the entire cryptocurrency market has dropped 85% with Bitcoin (BTC) losing 83% of its value. Altcoins like Ripple (XRP) and Ethereum (ETH) have suffered the same fate and lost over 90% market value. On the surface these decline statistics show a depressed market, but in truth is a poor and inaccurate way of measuring cryptocurrency market growth.

The reality of the situation is a booming industry. According to a study, performed by Cambridge Centre for Alternative Finance, the on boarding of new users and cryptocurrency adoption has now exceeded 139 million with at least 35 million identity-verified users, despite experiencing a severe bear market in the last year. User growth is experiencing an exponential increase; quadrupling in 2017 and doubling again in the first three quarters of 2018. Service providers are scrambling to serve the 35 million and growing ID-verified crypto asset users. With this exponential user base growth, the industry is responding well with its own rapid growth.

Service providers currently serve at least 35 million ID-verified cryptoasset users, and the industry is still undergoing rapid growth

Why Should You Care?

The proof is in the pudding. While widespread cryptocurrency adoption has not occurred as of yet, the generational shift will see it happen in the future. As investors are exposed to and educated on the benefits of digital currencies and blockchain technology, trust in crypto platforms will be on the rise.

Consider JP Morgan, a traditional financial institution, that has adopted the first US bank-backed cryptocurrency aimed at transforming client-business transactions. As new cryptocurrency products and services are developed, we can expect the number of cryptocurrency users to increase exponentially. For now, all we can do as crypto enthusiasts is remain patient regarding price and keep an eye on the ever expanding crypto industry.

Making A Crypto Investment

The rapid market growth has led to a myriad of investment options, increasing complexity and difficulty in selecting the best investment opportunity. Both new and experienced investors require a vast amount of knowledge in order to trade effectively and deep-drive research when it comes to longterm investment positions.

Short-term trading can be very lucrative, but it can also be risky.

Fundamental investment theory and economics drive long term investment decisions while greed and fear drive short term trading.

Investor Type Determines The Basis Of Investment Strategy

Before making any investments, you must have clear investment goals. Categorize your investments, look at the long term effects, then allocate your asset portfolio based on your risk tolerance. Alternatively, you may favor a higher risk-high reward scenario. The short-term trade can be very lucrative, but it can also be risky.

Avoid Giving Into That FOMO (fear of missing out) Feeling!

Steer clear of the new hyped coin and thoughts of “losing” out on potential profits! Millennials are often characterized as impulsive decision makers with a tendency to take on more risks than they can digest. In reality, most traders crash and burn because of a lack of discipline rather than a lack of knowledge. First and foremost, always set a stop-loss level to avoid financial collapses.

Do your research and turn your crypto investment from a gamble to a calculated risk!

*Opinions are my own and should not be in any way treated as investment advice. Please use your own judgement to decide whether these investments are right for you.