### Cryptocurrency has emerged as the investment of choice among Gen Z investors, reflecting their exposure to technological advancements, social media, and easier access to the world of investing. However, experts caution that while the younger generation may be more open to investment risks compared to older cohorts, relying heavily on cryptocurrency in their portfolios can be a risky proposition due to its inherent volatility.

According to a joint report by the CFA Institute and the Financial Industry Regulatory Authority's Investor Education Foundation, a staggering 55% of Gen Z investors (born in the late 90s to early 2000s) currently engage in cryptocurrency investments. This figure far surpasses other investment options such as individual stocks, mutual funds, non-fungible tokens (NFTs), and exchange-traded funds (ETFs). However, the report highlights the need for concern if investors fail to adequately consider and manage risk, especially since crypto and individual stocks lack the diversification typically offered by mutual funds and ETFs.



Gen Z's affinity for cryptocurrency may be attributed to their upbringing in a tech-savvy era marked by social media dominance. Platforms like TikTok and Instagram have become popular sources of investment advice, while investment apps have democratized access to the market, even for those with limited disposable income. Furthermore, Gen Z's confidence in the continued growth of the digital economy, coupled with the rise of technology giants like Alphabet, Apple, and Meta, further fuels their enthusiasm for crypto investments.



While recognizing the potential for aggressive growth, financial experts recommend that cryptocurrency should represent only a small portion of an investor's portfolio. They generally advised to limit exposure to 1% to 3% of total investments, especially considering the volatility inherent in this asset class.

This article is not financial advice. 



 

Cryptocurrency has emerged as the investment of choice among Gen Z investors, reflecting their exposure to technological advancements, social media, and easier access to the world of investing. However, experts caution that while the younger generation may be more open to investment risks compared to older cohorts, relying heavily on cryptocurrency in their portfolios can be a risky proposition due to its inherent volatility.

Sat Jul 15 2023

Generation Blockchain: Research Shows Gen Z’s Embrace Cryptocurrencies With Zeal

Ferrari to Accept Crypto Payments in the US; Plans to Include Europe Underway

Prototype Global Cryptoasset Mapping System Developed

FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering

Huobi Rocked by Reports of Executive Arrests and Accusations of Customer Fund Misuse

Breaking The Chains: Introducing BRC-69, The Bitcoin Standard Without Data Restrictions

Prototype Global Cryptoasset Mapping System Developed

Sat Jul 15 2023 Generation Blockchain: Research Shows Gen Z’s Embrace Cryptocurrencies With Zeal

Ferrari to Accept Crypto Payments in the US; Plans to Include Europe Underway

Prototype Global Cryptoasset Mapping System Developed

FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering

Huobi Rocked by Reports of Executive Arrests and Accusations of Customer Fund Misuse

Breaking The Chains: Introducing BRC-69, The Bitcoin Standard Without Data Restrictions

Prototype Global Cryptoasset Mapping System Developed

Sat Jul 15 2023

Generation Blockchain: Research Shows Gen Z’s Embrace Cryptocurrencies With Zeal