Are Avid Investors migrating to crypto and DeFi technology?

Many avid investors have migrated their wealth into crypto and DeFi technology and backed several crypto startup projects with outstanding objectives and with acceptable profit margins for investors. Due to unbelievable returns, sometimes reaching the thousands in terms of ROI percent, most big investors prefer cryptocurrency and DeFi as their next farm due to the privacy and security associated with blockchain technology. But more than that, a class of long-term investors sees the immutable value of currencies like Ethereum, Dash, Ltc, Doge, Cardano, Solana, and Polkadot beyond a store of value or trading coin. 

Cryptocurrency is an emerging asset that will continue evolving in the coming years. Whether the future will be one where all tokens are backed by local currency or whether they’ll remain intangible, crypto can undoubtedly form a portion of a prudent investor’s portfolio. Its decentralized nature has protected cryptocurrency from the influence of third-party servers and government agencies, which has created an anonymous processing system that appeals to many users. Its blockchain technology maintains a complex and highly-secure transaction log.

However, the system is not risk-free by any means. The current lack of government and international regulations may hinder the product’s desirability for some. For others, the volatility of different coin prices may seem just too dangerous—especially for an asset with no intrinsic, fundamental value. Much like the asset’s price, public perception of cryptocurrency has fluctuated dramatically over time. But it’s safe to say that this new currency is not yet spent.

The youngest age demographic is most likely to participate in crypto, with 58% of digital currency owners worldwide being under 34, according to a 2021 survey. 

A whopping 27% of people ages 18-34 prefer Bitcoin (the largest crypto by market cap) over stocks (April 2019 study). The youngest age demographic of investors is the most likely to adopt Bitcoin and other cryptocurrencies as a large or maybe the largest portion of their portfolios.

Additionally, 54.9% of retail investors are between the ages of 26 and 40. This class of investors has shown increasing interest in crypto in 2021 after it provided unprecedented short-term opportunities.

From Dogecoin to Ethereum, speculation and value investing have been off the charts in a crypto bull run. This young investor demographic has grown impatient and used to sky-high returns and volatility.

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