- August 6, 2023
- Posted by: [email protected]
- Category:
A recent report from crypto exchange Bitget has shed light on the preferences of different generations when it comes to investment strategies, particularly in the realm of copy trading or social trading. The study unveiled a striking trend, showing that nearly half of all copy traders on the platform are from Generation Z.
Copy trading, a method where investors mirror the trades of others, has gained popularity in both traditional stock markets and the crypto space. Bitget’s report highlighted that 44% of its copy traders were under 25 years of age, firmly establishing Generation Z as the dominant group in this investment approach. Following behind were the 25 to 35-year-olds, who made up just under one-third of all copy traders. Meanwhile, older generations, including those aged 35 to 55, constituted 17% of the copy trading cohort, and those over 55 represented a mere 7%.
The study suggested that Generation Z’s strong inclination to seek investment advice from social media influencers might explain their affinity for copy trading. This generation has demonstrated a substantial reliance on platforms like YouTube, Reddit, and TikTok for financial guidance. A previous survey conducted by Forbes Advisor found that approximately 80% of Gen Z and millennials sought financial advice from social media, with around half of them claiming to have profited from such advice.
Interestingly, the report also highlighted crypto’s significant appeal among Gen Z investors. A separate study by the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation revealed that crypto emerged as the most popular investment choice for Gen Z. In the United States, 44% of Gen Z investors began their investment journey with cryptocurrencies, surpassing millennials at 35%. Similarly, 43% of British and 35% of Canadian Gen Z investors stated that their first investment was in crypto.
Bitget’s comprehensive study of its copy-trading users revealed that while Western Europe constituted the largest regional segment at nearly one-third, nearly half of the copy traders came from either East or Southeast Asia, indicating the rising interest in crypto and copy trading in these regions. Moreover, an intriguing finding was that although African users accounted for only 1% of Bitget’s global copy traders, a staggering 62% of them expressed interest in copy trading, the highest proportion among all regions.
The Bitget report underscores the shifting landscape of investment preferences among different generations, with Gen Z showcasing a strong proclivity for copy trading and a keen interest in cryptocurrencies. As the crypto market continues to evolve, exchanges and investment platforms are likely to witness an influx of younger investors seeking innovative and social approaches to grow their portfolios.
