Nearly half of crypto copy traders are Gen Z, says Bitget report

Generation Z crypto investors are more likely to engage in copy trading or social trading, an investment method that involves mirroring someone else’s trades, according to a report from crypto exchange Bitget.

In an Aug. 3 report on copy trading by Bitget, the firm revealed that out of all of its copy traders, 44% of them were under 25 years of age. This was followed by 25- to 35-year-olds, who accounted for just under one-third of all copy traders.

The older generation, 35- to 55-year-olds, made up 17% of copy traders, while those over 55 were only 7% of the total.

Copy trading or social trading has been offered by exchanges in both traditional stocks and crypto. In the crypto space, it is currently offered by exchanges including eToro, Bybit and MEXC, among others.

Users can choose to use an automated tool that essentially copies positions opened and managed by a chosen individual.

Bitget suggested Gen Z’s inclination to look to social media influencers for investment decisions could explain their affinity towards copy trading.

A January Forbes Advisor survey said around 80% of Gen Z and millennials took financial advice from social media. Half claimed to have made money from the advice received and YouTube, Reddit and TikTok were the most trusted platforms.

Crypto was found as the most popular investment for Gen Z in a May report from the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation.

Some 44% of United States Gen Z investors started with a crypto investment, compared to 35% of millennials. 43% of British and 35% of Canadian Gen Z investors also said crypto was their first investment.

Related: Crypto trader weighs in on possible Bitcoin extinction scenarios

Bitget’s report claimed most of its copy-trading users — nearly a third — were Western European but nearly half hailed from either East or Southeast Asia, its next two largest geographic segments.

Despite making up 1% of Bitget’s global copy traders, 62% of African users were interested in copy trading — the highest proportion of any region.

NFT Collector: On-chain music sounds off with latest raise, artistic duo Hackatao find their lane

Source: Read Full Article