Wealthy millennials are pouring cash into crypto, survey shows | Job Binary

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  • The crypto market crashed in May 2022 and Bitcoin lost almost half of its value in the last six months.
  • But wealthy investors between the ages of 21 and 42 are still investing in cryptocurrencies, according to a new Bank of America study.
  • More than half of young people investing in crypto get advice from social media platforms like TikTok.

The price of Bitcoin has fallen by 48% in the last six months. But wealthy millennials are still pouring cash into crypto, according to Bank of America’s 2022 Private Bank Survey of Wealthy Americans.

Stories of people losing their life savings when the cryptocurrency market crashed in May earlier this year didn’t scare 21- to 42-year-olds.

According to the survey conducted between May and June 2022, 75% of wealthy youth, defined as high net worth and ultra high net worth, agreed that above-average returns are not possible in traditional investments such as stocks and index funds. , compared to 32% of wealthy individuals age 43 and older.

Wealthy young investors believe that crypto will help them create more wealth

In the study, 29% of affluent young investors said crypto was the leading opportunity for wealth creation, with real estate a close second at 28%. On the other hand, 41% of older investors said traditional investments such as stocks, index funds and mutual funds are the leading way to build wealth.

Despite the volatility of cryptocurrency, three times as many young investors believe that cryptocurrency is a profitable long-term investment vehicle compared to older investors.

Financial experts advise cryptocurrency investors to balance their risk exposure with safer, more traditional investments like stocks and bonds, and say crypto should make up a very small portion of your portfolio, ideally less than 5%.

Young investors surveyed by Bank of America said they would allocate 15% to cryptocurrencies, while those 43 and older said they only put 2% of their cash into cryptocurrencies.

More than half of young investors seek cryptocurrency advice on social media

More than 60% of young people said they have a good understanding of cryptocurrency, and 12% of affluent people aged 43 and older; said young investors get most of their crypto tips on social media platforms like TikTok, Instagram or Reddit.

Older investors said they were more likely to turn to Internet research or professional advisors than younger ones.

There is no way to know how the cryptocurrency market will react to rising inflation and the coming recession. But if you decide to invest or continue investing in crypto, know that many wealthy millennials are on the journey with you.

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