Why 30% of Millennials Would Rather Put their Money on Cryptocurrency
Millennials are the new breed of investors. More than any generation, millennials are the most interested in the modern financial endeavor that is cryptocurrency.
A survey conducted by Blockchain Capital found that 30% of millennials would invest money in Bitcoin rather than in government bonds or stocks. Additionally, Finder.com reported that among 2,001 Americans surveyed, millennials between the ages of 22 and 37 have a 17% cryptocurrency ownership rate, while Gen X has a 9% rate, and Baby Boomers with 2%.
While they aren’t the only ones favoring crypto, millennials’ interest is hard to ignore. What draws millennials to cryptocurrency?
It’s a new technology without traditional third-party interference
Millennials have been known for their FOMO or fear of missing out. Perhaps this could be one reason they choose to dip their toes into this innovative technology. But more than the bizarre fear, the idea that they can control their money without having to go through a bank or any other institution seems to make them feel empowered regardless of the risk.
Through crypto, they can participate in markets and support democratic initiatives without traditional third-party interference. Millennial thinkers look forward to a new market free of centralization to make a difference in their ventures.
Disillusion and skepticism over stock market and other similar institutions
One of the driving forces behind millennials’ displeasure with the establishment is the financial crises that have happened in the past. The need to look for alternatives may be due to corporate interests tarnishing traditional investment options and the availability of new financial information to them.
Julia-Carolin Zeng, the spokesperson for BitcoinSportsbooks.com, believes that crypto is appealing to millennials because “the roots of digital currency itself are anti-establishment and its decentralized system brings hope for a new economy that puts people over corporations.”
In fact, Bitcoin was created after the 2008 recession to exchange money without the need for banks. This spoke to millennials because their first foray into the job market coincided with this recession, with 82% saying that the event has influenced their financial decisions.
Some may argue about the safety of digital currencies, but mining and trading cryptocurrency is a generally secure process.
First, crypto can only be generated through mining, which is protected using a combination of cryptography and economics. Mining entails solving a difficult cryptographic puzzle that can only be done by very powerful and expensive computers.
After mining comes blockchain or a ledger that authenticates and records crypto transactions, safeguarding users further against fraudsters.
Another security feature is that it can’t be directly devalued or confiscated by the government, which bodes well with the millennial distrust.
It’s an alternative retirement plan
The National Institute on Retirement Security found that 95% of millennials are not saving adequately for retirement and over 66% of those who are working have not saved for retirement.
However, millennials have found crypto as a better alternative to traditional banking methods for a retirement plan. Due to this, innovative startups are starting to create new retirement solutions through crypto and AI technologies.
For instance, Auctus, a retirement planning platform, focuses on both traditional and coin assets by using smart contracts and robo-advisory technology.
Additionally, Bitcoin has started facilitating the transfer of Individual Retirement Account (IRA) or 401K fund to a Bitcoin IRA.
Getting into the business of digital currencies entails a huge responsibility. If you want to experience the benefits of both old and upcoming cryptocurrencies like NOAHCOIN, here are some tips to do it the right way.
1. Beware of bots
There are people who try to outsmart buyers and sellers by using bots that inflate coin prices to manipulate the market artificially. While this deceitful practice can hamper your assets, it’s quite tough to spot a trading bot, unless you carefully watch the market trading signals for any abnormal patterns.
Price momentum and volume are two indicators to watch out. Observe these and look out for a coordinated buying pattern.
2. Allocate assets based on risk tolerance
Set a stop-loss level or the level of loss where the trade will get closed to avoid financial breakdown. Keep the number in mind as you allocate the higher percentage to the least volatile coins and the smaller portion to the least stable.
Always keep an eye on market signals and use its insights to adjust your strategy.
3. Avoid overtrading and FOMO
FOMO means buying hyped coins and losing potential profits, while overtrading is immediately selling the coins at the sight of a small price spike. They are not practical strategies as they can weaken your future gains.Overtrading can also eat up your assets because of exchange fees.
4. Utilize cold storage wallet
Secure your crypto in a cold storage wallet, which is a wallet on your computer that is not connected to the internet.
Originally published at noahcoin.org on July 23, 2018.