Why Do the 13 Year Olds and the Hamsters of the World Do Better Than You in Crypto?

  • Young adults are more receptive to new information found on social media.
  • Trading with lower capital transforms crypto investing into a gambling-like mentality, which often pays dividends.
  • Joining like-minded communities with similar mentalities helps young investors combine their efforts in making joint decisions.

Crypto trading is irrational, atypical, and often understood by those who spend enough time on the internet. Unfortunately, global mass media outlets do not disseminate information on crypto markets thoroughly and entirely. Instead, it is typically spread through enclosed, niche, digital locales such as Reddit or Twitter (NYSE:TWTR), places where young adults often spend most of their time.

Young Luck

Cryptocurrencies draw young adults in because they are “simple to understand” and provide higher financial yields than any centralized forms of investment. NFTs, DeFi staking, and meme coins are simple investing methods that do not require capital floor, or KYC requirements.

Platforms such as Robinhood (NASDAQ:HOOD) and eToro don’t allow teenagers to interact with their products because of the perceived financial losses teenagers could incur. Meaning that they instead turn their funds towards crypto, which the SEC has referred to as ” a wild west” because there are no safeguards in place.

Still, reports show that young adults, and even inexperienced traders, have made millions from investing in cryptocurrencies. For example, Erik Finman bought Bitcoin at the age of 12 and became a millionaire by the age of 18. Similar Reddit reports show that kids who are still in high school have become “investment gurus,” simply by investing in Ethereum or Dogecoin.

A Motley Fool survey showed that Gen Z investors are more likely to invest in cryptocurrencies. For example, 47% of Gen Zers hold crypto, compared to 39% of Millennials. Moreover, young adults distrust traditional institutions, which catalyzed Bitcoin’s surge amid the 2008 stock market cras

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