August 5, 2023

Gen Z Mostly Tend To Do Crypto Copy Trading, Report Says

Crypto Trading among Genz Z

Crypto Trading among Genz Z

A recent report from Bitget, a crypto exchange, showed that Generation Z investors are more inclined towards copy trading or social trading. This investment method involves imitating someone else’s trades.

As per the report published on August 3, 44% of Bitget’s copy traders are under the age of 25. The next largest group is 25-35 year-olds, who make up just under one-third of all copy traders. Out of all the copy traders, only 17% belonged to the age group of 35 to 55 years, while the percentage of individuals over 55 years of age was just 7%.

It has been suggested by Bitget that Gen Z’s tendency to rely on social media influencers for investment advice could potentially explain their preference for copy trading.

According to a survey conducted by Forbes Advisor in January, around 80% of both Gen Z and millennials seek financial guidance from social media, with half claiming to have profited from the advice received. The most trusted platforms for financial advice were found to be YouTube, Reddit, and TikTok. In a May report by the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation, it was found that crypto is the most popular investment choice for Gen Z.

In fact, 44% of US Gen Z investors started their investment journey with crypto, compared to 35% of millennials. Likewise, 43% of British and 35% of Canadian Gen Z investors also expressed that crypto was their first investment.

According to Bitget’s report, almost one-third of its copy-trading users are from Western Europe, while the next two largest geographical segments are East and Southeast Asia, with nearly half of the users coming from these regions.

Many exchanges, both in traditional stocks and crypto, offer copy trading or social trading. In the crypto market, popular exchanges like eToro, Bybit, and MEXC provide this service. With copy trading, users have the option to use an automated tool that mimics the positions opened and managed by a selected individual.

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