According to a report from review platform Clutch, 88% of millennials are currently making financial and stock investments for their retirement. Based on the survey, most millennials — who are between 25 and 40 years old — are choosing to invest in 401(k) plans, Roth individual retirement accounts, stocks, and mutual funds, to live comfortably in the future.
The dream of financial freedom is also driving tech-savvy millennials towards cryptocurrency investments. Cryptocurrency is attractive for a number of reasons: novelty, passive income, low-effort investing, and detachment from financial markets. It is also a big risk, especially as the crypto market is still in its volatile infancy stage. Regardless, a subgroup of millennials is now quitting their jobs in the hopes that they make it big with crypto investments.
Going Crypto: The Rise of the Millennial Investor
While there are countless stories of traders going bankrupt from cryptocurrency speculation, some millennials are trading crypto tokens without relying on any other source of income. Current studies pin this subgroup to millennial males who have degrees in higher education. But why them? And what exactly is the appeal?
Millennials are native to Web 2.0 and 3.0, which is why understanding how cryptocurrency and blockchain technology works comes very intuitively to them. Compared to tech-averse older generations, millennials are more likely to embrace crypto completely, rather than treating it as another investment to diversify their portfolios. Although younger Gen-Zs grew up in the same environment, they may not have the same level of maturity, knowledge, or financial resources to dabble in cryptocurrency.
Cryptocurrency also leans into the idea of quick, easy money. Many investors also like the fact that you can buy crypto, then leave their investment to accumulate value. And perhaps the biggest appeal of cryptocurrency for millennials is that it is decentralized. Everything on the blockchain is visible and transparent, which is a key advantage for a generation that is largely skeptical of governments, banks, and other institutions.
With all that said, cryptocurrency is still a risky choice for investments. In May 2021, leading token Bitcoin fell from bids of $50,000 and bottomed-out closed to $42,000, which was the biggest drop since February. So if you’re determined to take the risk, it’s best to be prepared.
3 Resources to Guide You Into the Investment Boom
There are plenty of podcasts, guides, blogs, and articles that offer tips for investors — crypto and otherwise — but here are a few to get you started:
Vlogs and videos: Plenty of content creators are giving financial tips in engaging video formats. The financial advice community on TikTok, for example, is rapidly growing with its #investing tag racking up hundreds of millions of views. Videos are a good way to learn basic financial tips, although it’s best to supplement your knowledge with plenty of fact-checking. Check out Andrei Jikh on YouTube, where he goes through personal finance topics like stocks, trading apps, passive income, real estate, and general thoughts about the market — while adding a few magic tricks to boot.
Advice sites and books: Websites and books are a great place to start your investing journey because they’re well-researched and offer a lot of practical information to try. There are plenty of sites that cover a wide range of topics related to investing, so make sure you use an authority site. Finance site AskMoney has a number of detailed posts on every field covered in this article that will give you a good understanding of each topic. If you are looking for a good starting book, “Broke Millennial Takes on Investing” by Erin Lowry is especially helpful. This audiobook serves as a nice primer on terminology you need to know, and answers questions about a wide variety of concepts. You’ll have a better idea of how the market works once you’re done with it.
Trading apps: If you’re on the more advanced side, you may want to look into trading apps that allow you to research investments, track your portfolio, and enter orders to buy or sell. Based on a write-up on the Best Stock Trading Apps of 2021, SoFi Invest is a simple-to-use app for new traders. Aside from investment products and other savings accounts, you also get educational guides so you can learn as you go.