Millennials are the generation group that invests the most in cryptocurrencies while xennials earn the most profits, a study revealed.
According to a recent survey, millennial investors have allocated 12% of their wealth in the digital asset market while xennials and generation X have respectively distributed 9.2% and 6.3%. However, those born between the late 1970s and the early 1980s have profited the most from those investments.
Crypto Trends among The Generations
The cryptocurrency exchange CryptoVantage conducted a study to determine what digital assets each generation favors, why they have entered the crypto space, and what part of their wealth they have allocated in the market.
Per the results, millennial investors have 12% of their total portfolio in virtual currencies. Thus, they ranked first in that statistics. Xennials, or those around 40-years-old, allocated 9.2% of their funds, while generation X’s exposition is approximately 6.3%.
Despite investing the most, millennials are not leaders in terms of making crypto profits. Nearly 76% answered they have gained from their investments, while xennials ranked first with 80.5%. As for Generation X, the numbers stood at 71.5%.
Bitcoin is the most preferred investment asset for all as around 60% of each group chose it. Ethereum is second for millennials and Generation X. Interestingly, it is the fourth choice for xennials who tend to go for Bitcoin Cash and Dogecoin.
The most popular trading platforms among the youngest age group are Coinbase and Binance. Xennials deal with digital assets on Bitcoin Ira and Binance, while Generation X prefers Bitcoin Armory and Coinbase.
CryptoVantage asked the participants what are their reasons for investing in cryptocurrencies. Curiosity was the top answer of all groups. The belief of high returns ranked second. Somewhat surprisingly, 18.5% of the oldest investors believe that virtual assets will be the currency of the future and placed this answer as the third most important reason to jump on the crypto bandwagon.
Rich Millennials Are Keen on Digital Assets
According to another survey, 47% of millionaires born between the early 1980s and the early 1990s have invested at least 25% of their wealth in the cryptocurrency market. In comparison, more than 30% of them have allocated at least half of their assets in digital currencies. George Walper – president of the analysis company Spectrum Group – explained:
“The younger investors jumped on it early when it was not well known. They were more intellectually engaged with the idea even though it was new.”
On the other hand, the majority of older investors owning at least $1 million are not that fond of cryptocurrencies. 83% of them do not believe in the market and have not distributed any funds in it. Only 1 in every 10 keeps more than 10% of their wealth in virtual currencies.
“Older investors and the boomers were largely saying ‘Is this legit?’ Older generations are further behind on the understanding,” Walper concluded.