Are you wondering who else is interested in investing in cryptos and how the demographics look across the board? Well, you most probably know that the average crypto investor is a millennial, probably a male. There is much more than just age and gender; crypto investors share common affinities and interests.
As expected, the most common interest among these investors is investing and financial services. A good number have an interest in software design. Beyond the trading, software, computers, and trading apps, crypto investors are your ordinary guys in jeans and T-shirts. They are not drawn from any income level, nor are they the book geeks with several degrees.
With regard to affinities, it is almost obvious; they have a direct relationship with the interests. Most crypto investors are technophiles and avid investors. Among them, though, you will get a few movie lovers, digital nomads, and political fanatics.
Now, let’s get the truths, the half-truth, and ultimately smash the lies on the demographic of crypto investors and how that impacts the industry.
The gender question
Generally, women tend to show risk aversion tendencies, which accounts for a natural imbalance in crypto investors. As such, men are more likely to put their money in crypto than women. In fact, research published by Raphael Auer and David Tercero-Lucas for the Bank of International Settlements shows that only 0.8% of women own one or more digital currency, compared to 3% of male respondents. The last gender parity in crypto investors was in 2017, but the gender gap has been widening.
Most cryptocurrency investors are between 18 to 45
Not surprisingly, age has a negative correlation with cryptocurrency ownership. As such, as people get older, they tend to find cryptocurrency less attractive. Cryptocurrency is a “youth gig” to most. In 2018, the average age of crypto investors was 40, and 35 in 2019. For instance, millennials make up the lion’s share of Bitcoin users, making up almost 50% of the investors. About 28% of bitcoin users are between 35 and 44, and just a mere 1.4% are over 65 years. Maybe this can be explained by the fact that older people have some sort of hard investment and are less likely to consider investing elsewhere for returns.
Geographical location
Acceptance of cryptocurrency has grown across the globe. Over 300 million people are now crypto users, and about 18,000 businesses are accepting digital currency for the payment of goods and services.
In terms of the number of cryptocurrency owners, India is the top location for cryptocurrency investing in all three categories of past, current, and planned ownership. The U.S., Nigeria, Vietnam, and the United Kingdom follow in that order in the top five countries in crypto adoption.
Cryptocurrency investors are overwhelmingly tech-savvy
A significant number of cryptocurrency investors are eager to embrace new technology. Most invest in new technology immediately after it is launched. The technology may include smart security, smart appliances, software, and home assistant. And a rather interesting fact, a study found that an impressive 62.5 % of people who own a hybrid or electric car holds or have held cryptocurrencies compared with a mere 6.9% of people who are not interested in cryptos.
Can this be because the moment you invest your time and finances in cryptos, it is just impossible to go back to the “conventional” ways of doing things? There is no scientific data to support this, but you can make your conclusion based on your experience or that of your friends.
Income and education
Most people think that crypto investors are affluent and earn an above-average income.
However, is this true, or should it be ignored like any other cliché?
Income status does not significantly affect the decision to invest in cryptocurrency. About 15% of lower-income earners have invested in cryptos, while 17% of upper and middle-income earners have held crypto portfolios.
Nonetheless, more affluent people may own more significant amounts of cryptocurrency than their counterparts in the lower-income strata. Moreover, if cryptocurrencies continue along with the current upward trend, there are chances of wealth transfer among crypto investors.
Interestingly, there is also a temptation to think that most crypto investors are book nerds with degrees and diplomas. In the U.K, for instance, just about a third of investors hold a bachelor’s degree. Over half of the investors have no degree or advanced degree. It is fair to conclude that your level of education does not increase your propensity to succeed in cryptocurrency investment.
The world is ready, and partners like IXFI are taking strides in helping all crypto investors by offering a highly secure crypto trading platform, even if you fit the stereotypical profile of the average investor or you don’t.
If you found this article interesting, insightful or just generally helpful, follow our blog for more good reads, brought to you by Your Friendly Crypto Exchange, IXFI.
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