Crypto Isn’t Just a Currency, It is a Wealth-Generating Investment

Ever since the crypto market has skyrocketed – first in April and then again last month – people have been looking for ways to expand their crypto investment portfolio. Especially millennials and Gen Z are highly positive about cryptocurrency and decentralized financial markets. They are looking at cryptocurrencies as “vehicles of wealth generation.” While cryptocurrency is a relatively new investment asset, it has captured the interest of youngsters. The new generation wants to move completely digital; they do not trust traditional banking institutions and financial advisors. Instead, they want to rely on their research, and cryptocurrency gives them both the opportunity and freedom to do that. While there is no doubt that cryptocurrencies are volatile but so is every other vehicle of investment when it comes into being. It does not delegitimize that cryptocurrencies are one of the major investment classes in today’s modern world. The investment attitude and risk factors associated with crypto are the same as every other traditional asset. You have to be mindful while investing and should have a full-proof investment plan. But unlike conventional investment assets, you do not need to have a financial advisor to make an investment strategy for you. You can do it all by yourself with the help of research. It is not as complicated as you might think. The following factors should be considered before investing in cryptocurrencies:

  1. Allocating Funds: You should not put all your savings into cryptocurrencies, just like you will not invest all your money in stocks. It is usually recommended to limit your cryptocurrency investment portfolio to 7.5-10%. Even though cryptocurrencies are witnessing a rise in prices, you cannot bet all your savings on them. They are still highly volatile and speculative. Just as you can make massive gains, you can also lose your money. 
  2.  Research: It is imperative to conduct your research before investing in cryptocurrencies, just like you do for bonds, stocks, or properties. You should know the various kinds of coins in the market and which coin is the best for you. Exchanges like Binance allow you to organize your cryptocurrencies by price, market capitalization, price changes, etc. You should research the supply, market value, capitalization of the coin. 
  3. The goal for Investment: You must think about the short-term and long-term goals of your investment. How long do you want to hold your crypto assets? How much profit do you want to make from your investments?

It is crucial to make an investment strategy and stick to it. You should not drastically increase your investment if the prices are going up. This is because prices can go down as quickly as they have gone up. Therefore, you must stick with your investment strategy. 

Crypto Millionaires and Billionaires 

These days even people in their early 20s are taking a keen interest in cryptocurrencies. A recent CNBC Millionaire survey suggested that nearly half of the millennial investors have 25% of their wealth in cryptocurrencies. The crypto boom has facilitated in creation of wealth for such young investors. Over one-third of millionaires have more than 50% of their wealth in cryptocurrencies. This survey reflected on the generational gap in wealth creation from cryptocurrencies. The younger investors have seized this opportunity and capitalized on the crypto boom, therefore, increasing their wealth. On the other hand, older investors are not too keen on investing in crypto. 83% of American millionaires do not have any of their wealth in crypto. Similarly, around 50% of younger millionaires own non-fungible tokens (NFTs). They also believe that NFTs are the “next big thing.” 40% of those millionaires do not own NFTs, but they have considered buying them. The younger generation has a positive outlook on the future of blockchain and cryptocurrencies and is therefore interested in investing. At the same time, they are disinterested in other traditional investment assets, so investing in the crypto space seems fun. For the millennial and Gen Z population, crypto has allowed them to enter the investment sector mainly dominated by baby boomers. They can quickly join the crypto market and earn in the same way as venture capitalists. Therefore, crypto levels the playing field to some extent. Unlike traditional assets, they do not need a lot of money to buy and invest in cryptocurrencies. Crypto has democratized the investing space – enabling and empowering people to invest. Also, the younger generation is more internet and tech-savvy, so they feel at ease while investing in crypto compared to using a brokerage. 

The younger generation is also worried about their retirement wealth plans. They do not want to invest in traditional vehicles as their parents did. They have seen its inefficiencies which have made them believe that traditional investments cannot be trusted. Therefore, they are driven towards an investment vehicle that gives them more control, financial freedom, and independence from the intermediaries. A decentralized cryptocurrency coin offers them all, thereby making it attractive to youngsters. Another feature of cryptocurrency which lures younger investors is – the fun. You can have fun with your cryptocurrency investment. This is relatively evident when we think about the case of dogecoin, which is a Shiba Inu dog meme. But it became so popular that even Elon Musk, Founder of Tesla, promotes it now. Currently, it is amongst the top 10 cryptocurrencies in the market. It was created as a meme not to be taken too seriously. But the fact that it takes away the scary aspects of investment makes it so attractive. People usually think of a suited-up middle-aged guy when they think of the stock market. Look at dogecoin, and you get a completely different image about financial investment. Many younger investors started investing in cryptocurrencies just for “fun” initially and then later became long-term investors after they reaped its benefits. 

At Unbanked, we believe cryptocurrencies can revolutionize financial technologies and investments. To know more about how you can enter the crypto market, visit us today!

The Latest

Unlocking the Secret Language of Crypto: Your Ultimate Slang Guide

The world of crypto is admittedly confusing. Some people have trouble understanding how it works and what it even is. Others have trouble understanding how they can operate within this world.  To make matters worse, crypto has so much slang associated with it that it has effectively formed a new language. Terms like FOMO, FUD,… Read Article

Unleashing the Power of ApeCoin: How One Cryptocurrency is Disrupting the Market

If you’ve been paying attention to the world of crypto or digital media, chances are you’ve heard of Bored Ape Yacht Club. Bored Ape Yacht Club is a massively popular NFT collection released by Yuga Labs. Now, the ApeCoin cryptocurrency is set to make as big of a stir as the NFT collection did.  So,… Read Article

The Future of Cryptocurrency: Proof of Stake and How it’s Changing the Industry

Cryptocurrency is constantly changing. However, one of the biggest recent changes is the shift away from proof-of-work and toward proof-of-stake. This has a pretty massive impact on how cryptocurrencies work.  But what is proof of stake? How will it change crypto? What do you need to understand about it? Keep reading to find out the… Read Article

Revolutionizing Transactions: How Smart Contracts are Changing the Game

Negotiating any sort of contract can be intimidating, especially when you are transferring money or other assets. In these cases, you want to be sure that the deal you are making will go through and that everyone will hold up their end of the deal. Otherwise, you may end up getting ripped off. Smart contracts… Read Article


6.38%

Crypto Rewards
on Spend

You also have access to:

BANK ACCOUNTS
DEBIT CARDS
BUYING, SELLING, & SPENDING CRYPTO


ARE YOU READY TO GET UNBANKED?


Nah, I enjoy high fees...

x
Want to be an owner in Unbanked? Limited shares available at a 20% discount. 🔥
This is default text for notification bar