Crypto no longer a young man’s game as new demographics enter the picture

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September 16 2021
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New research has shed light on what Australia’s growing crop of cryptocurrency traders looks like, and why they’re willing to gamble on the infamously volatile asset class.

The days of crypto trading being dominated by young men appear to be numbered, with new data suggesting that Baby Boomers and women are entering the arena at an accelerated pace.

According to BTC Markets’ most recent research into Australia’s crypto investment landscape, one in four Australian crypto investors is now over the age of 44. Furthermore, the report highlighted a 15 per cent increase in the number of crypto investors aged over 60.

BTC Markets CEO Caroline Bowler said that these trends represented a call to action, encouraging financial advisers, tax lawyers and accountants to become literate in the “nuances of crypto” in order to meet their clients’ needs.

“In order to stay relevant to this investing cohort, it is time for professional services to catch up with the comfort levels of these investors, rather than waiting for them to be convinced of the benefits of more traditional investment assets,” she said.

According to Ms Bowler, the growing number of Baby Boomers looking to enter the crypto space is usually at a time in their lives when they have accumulated significant wealth and assets and have many years of experience investing.

“They are not worried about allocating a small percentage of their portfolios to cryptocurrencies,” Ms Bowler said.

The report also highlighted an increase in the number of women in the crypto asset space, with the number of new female investors rising by 172 per cent year on year. This figure puts it at more than double the 79 per cent growth seen among male investors.

BTC Markets found that while female investors tended to trade less per day than their male counterparts, they also tended to deposit larger amounts at the outset.

Ms Bowler said that this detail dispelled common misconceptions around cryptocurrency investors being risk lovers, pointing to recent studies that found women are typically more risk-averse in their investment decisions than men.

“It also shows a calculated appetite for the volatility that is still a feature of this asset class,” she added.

As for the motivations behind Australia’s growing legions of crypto investors, the report found that building wealth dominated at 70 per cent. Early retirement ranked second at 34 per cent, followed by portfolio diversification at 28 per cent.

One in five crypto traders cited a fear of missing out as their reason for getting involved, while 57 per cent of crypto traders said they did research before investing.

Ms Bowler said that the longer-term investment timelines suggested by these motivations meant that many Australians didn’t see crypto assets as a way to get rich quick, so much as they did a replacement for things like REITs, hedge funds, art and precious metals like gold.

“Cryptocurrencies are coming of age in playing an increasingly important role as an alternative asset in the portfolio construction process,” she said.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

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