69% of crypto traders are aged between 25 and 44.
Young investors tend to prefer self-custody compared to older investors.
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69% of crypto traders are aged between 25 and 44, and only 2% are above +65 years old. It is possible that the 'new technology' is more appealing to young investors. The age group also trades on average 4 times a day.
While crypto traders between 25 and 44 years old are actively trading as opposed to other age groups, +65 years old traders' initial deposits are higher. Additionally, the portfolio size and average investments are bigger for +65.
The 25 to 44 age group's average initial deposit is $2,014 with an average portfolio size of $1,871. The +65 age group's average initial deposit is $4,539 and the average portfolio is $5,084. The age group trades on average 6 times a day.
Young investors tend to hold their cryptocurrencies in what is referred to as self-custody. Their cryptocurrencies are withdrawn off the exchange to an address that they have full control of (such as cold storage).
70% are trading cryptocurrencies to build their wealth. Only 4% are investing in crypto to finance their own businesses. 23% are only trading crypto, which is suggesting 67% are already invested elsewhere such as stocks, real estate and fixed income.
Social Media Influencers Impact
There is a misconception that average crypto traders rely on social media influencers to make their decisions. The study revealed that 57% go through the whitepaper, community and engagement of the projects.
Only 10% are basing their decisions on social influencers from Facebook, YouTube and TikTok etc. 8% will take advice from family or friends and only 2% will seek guidance from their broker or financial advisor.
The biggest challenge crypto investors (49%) see is market volatility . The crypto markets have been extremely volatile recently. Another challenge is the amount of available cryptocurrencies and tokens.
The majority of traders expect their cryptocurrency performance to be volatile (highs and lows). Only 1% expect fast growth.
Only 20% Are Active in DeFi Platforms
Decentralized Finance (DeFi) projects are drawing investments and popularity in 2022, but how are they perceived by traders？ 30% have never used DeFi platforms and 20% have never heard of such platforms.
16% do not know which DeFi platform to use and 14% have heard about DeFi but admitted they don't understand it. Only 20% are using Defi platforms for trading, lending and borrowing.
Due to the vast amount of available tokens on different blockchain technologies (Ethereum, Solana and Cardano for example), crypto investors are struggling to decide which project to trust and choose. 14% are concerned with losing their invested capital.
Men Vs. Women in Crypto Trading
There has been rapid growth of women investing in cryptocurrencies in 2020 and 2021 compared to men. Also, there is +172% growth of women that began trading cryptocurrencies compared to men (+79.5%).
The average initial deposit for women was $2,381 compared to 2,060 for men. The portfolio size for men was bigger than for women, $3,049 vs $2,650, respectively.
The initial deposit for both men and women increased in 2021 when compared to 2020.
When it comes to the number of trades per day, women are more conservative than men. On average, women place 2 trades per day while men execute 5 positions per day.
According to Fidelity, women performed better than men in 2021 by 0.4% on average. Furthermore, the report highlighted that more women are investing compared to earlier years.
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