4 Main Reasons Why Millennials Are Switching To Cryptocurrencies Like Bitcoin

In 2021, almost half of millennial millionaires have at least 25% of their wealth in cryptocurrencies. But why?

4 Main Reasons Why Millennials Are Switching To Cryptocurrencies Like Bitcoin

In 2021, almost half of millennial millionaires have at least 25% of their wealth in cryptocurrencies. The CNBC Millionaire Survey also said that more than a third of them have at least half of their wealth in crypto and owns NFTs.

Growing up surrounded by technologies, it’s only natural that millennials are more inclined towards newer investment methods that provide higher yields. Moreover, the abundance of investment tools has also drive millennial investors into the cryptocurrency market as this AI-integrated technology guarantees better returns, unlike traditional investments.

As alternative investments are taking a stronger hold on millennials, let’s take a closer look at why millennials are investing in cryptocurrencies and why they put their trust in them.

1) The Crypto Ecosystem Is More Inclusive

Physical banks have always been the gatekeepers of money all over the world. However, most banks require a minimum deposit to open a bank account, which simply isn’t ideal for the 1.7 billion people in the world who are still unbanked because they couldn’t afford to open a bank account.

Even though many banking institutions have been offering online and banking apps on smartphones, a lot of them still don’t have the financial on-ramp that banks provide, causing them to be segregated from modern society.

This led to the emergence of decentralised finance (DeFi) that operates outside of government and centralised authorities’ control and utilises smart contracts on blockchain and cryptocurrency for transactions. Cryptocurrency is money, but it’s also more than that.

Cryptocurrencies like Bitcoin allows free, public access to financial networks without restriction, anywhere, any time. With access to decentralised finance, many are able to hold USDT, USDC in their e-wallet or other cryptocurrencies and integrate into modern society to earn a living.

At the time of writing, many organisations and developers have started establishing open, decentralised payment protocols that are able to bridge the gap that prevented individuals from getting loans and payments. Decentralised institutions are also much faster and affordable for people who do not own a bank account or have good governments.

Ultimately, millennials’ distrust for traditional institutions and investments has driven them to invest in cryptocurrencies as they genuinely have a positive outlook on blockchain technology.

2) Millennials Are Risk Takers

Studies have shown that young investors view cryptocurrency as a less risky investment as compared to traditional investments like stocks and fixed deposits (FD).

While they are aware of the risk of investing, they are able to afford to take risks and have more time to invest in new assets to gain experience. Another study showed that the Covid-19 pandemic has increased the risk appetite of millennials than ever before.

3) High & Quick Returns

The increasing interest in cryptocurrency investment also can be partially attributed to millennials being a highly ambitious generation. Millennials are hesitant with traditional forms of wealth building therefore they seek investments in cryptocurrency that yield high returns in a short span of time.

Since its inception in 2009, cryptocurrency has grown in value and outperform many traditional investments, not to mentioned that it is often called the new digital gold. Compared with FD which give an average return of around 7%, Bitcoin has seen a 400% surge, reaching an all-time high of $64,805 on April 14 this year while Ethereum, the second-largest cryptocurrency has increased by 1,000%.

Other than investing, many young investors are also earning passive income through staking. By staking, they lend their cryptocurrencies to the exchanges in return for some extra tokens. It’s not like FD where your funds get locked for a specific period because staking enables you to still trade and earn while holding with the exchange. The annual return rate for staking ranges from around 7 to 16%.

4) Retirement Portfolio

While there are more reserved people with the idea of adding crypto to their retirement plans due to its inherent volatility, young investors, including Gen Z and Millennials, are more willing to add cryptocurrency into their retirement portfolios.

In fact, research stated that they are approximately five times as likely to prefer cryptocurrency in their retirement plan as the oldest generation. That being said, having a small allocation to speculative investments as such can be profitable as the whole point of retirement investing is to ensure it’ll grow over the next several decades.

How To Invest In Crypto Safely

Millennials are more interested than ever in cryptocurrency. While some may say crypto is still in its early stages of development and adoption, investing in cryptocurrency is no longer technical. Many platforms and exchanges have greatly ramped up their security and accessibility for a simpler interface, faster transactions and a safer trading experience.

If you are looking to maximise profit while maintaining risk at a minimum, Altimates offers a platform that facilitates arbitrage trading powered by secured Blockchain and Altimates Intelligence. Being one of the leading arbitrage trading platforms, Altimates offers an array of AI-integrated features and exciting rewards for their users.

Arbitrage trading can be zero-risk with Altimates leading you through the way. In your perilous journey to reap a fortune, let Altimates be the one to guide you forward.

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