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, 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 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 crash.
On The Flipside
- The hamsters of the world do not trade with high capital, and likely face little to no repercussions if they are liquidated.
- Trading has transformed into a form of cryptocurrency gambling, where decisions are based on intuition rather than data.
How Do They Do It
Research shows that younger generations have less understanding of blockchain’s technological aspects. However, through their digital native nature, they understand the underlying future possibilities such technology brings to the fore of a digital ecosystem. While adults gather news from established sources, the hamsters of the world gather their information from social media channels, and watch as NFTs get applied to virtual worlds like Roblox.
With NFTs snatching every inch of crypto attention, one 12 year old earned more than $400,000 selling digital artwork named ‘Weird Whales.’ Furthermore, two siblings have made over $30,000 after building a piece of mining equipment.
Other non-mediatic avatars are reportedly making millions, despite still being in high school. NFTs are built on community initiatives, and a glance into a successful project shows that most of the individuals trading NFTs are young adults without much financial expertise. According to Discord discussions, Shamdoo, an NFT trader, is younger than 18 years old, illustrating that age is not essential when trading new blockchain byproducts.
To that end, blockchain is demonstrably age agnostic, permitting anyone to interact with the novel technology. While a technical understanding is essential when handling high investment capitals, lower capital inputs are fueled by ‘YOLO’ and ‘APE-ing,’ which have been unspokenly added to official crypto trading lexicon.
Why You Should Care?
Younger investors can better understand the usability of blockchain because they are constantly interacting with new technologies and are building new expectations about how Web 3.0’s infrastructure will develop.
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Analytical, crypto, Crypto Hamster, Cryptocurrency, InvestingRead More
OhNoCrypto
via https://www.ohnocrypto.com
, Khareem Sudlow