Economy

Why has crypto become so popular among Millennial parents?

The topic of investing in cryptocurrency has been a hot topic for the past weeks due to the volatility in virtual coin trading. A decade ago, cryptocurrency was virtually non-existent when Bitcoin, the first virtual currency, appeared. Its value was $0 in 2009 when it was first introduced. Two years later, Bitcoin reached $1. In two years, its value soared to $1,000.

Analysts believe that cryptocurrency has made a significant leap in its market and is now slowly making it the mainstream. Although it is not yet able to replace traditional currency, younger investors have been attracted to it over the last few years.

Particularly important for cryptocurrency was 2020 when valuations rose sharply during the coronavirus pandemic. The weakness of traditional assets around the world was one of the key reasons investors gravitated towards virtual coins last fiscal year.



The rise in crypto trading is a result of young millennial parents who are meticulously planning their finances. Instead of the thrill of making a quick buck, they commit to long-term plans. Usually, these groups of people tend to invest a small portion of their salary in Bitcoin, Dogecoin, and other hyped cryptos, mainly via the online trading platform Robinhood or the OspreyFX online brokerage company. There are few regulatory restrictions. They don’t expect to see a quick profit, but they are happy to trade cryptocurrency with the hope of future profits.

After facing increasing student debt and stagnant incomes, young Americans view the plan as a great opportunity to invest long-term. Young millennials are jumping on the crypto train despite their limited knowledge of crypto trading. While some take a more calculated approach to crypto trading, others risk their financial security by investing large amounts in volatile markets in the hope that they will reap great returns.

The Harris Poll data, published by USA Today, shows that 29% of all millennial American parents have cryptocurrency, compared to 13% of Americans. The largest generation of parents in America are millennials, but they only own 5% of the country’s wealth. Many of these parents are driven to fill their savings and retirement accounts quickly, so they can buy homes and become wealthy.

According to Isabel Barrow, a financial advisor at Edelman Financial Engines, crypto investing is a risky bet due to the volatility and lack of regulation. Barrow advised that those who are investing in crypto as a long-term investment plan should prepare a personal financial roadmap: set long- and short-term goals, create an emergency fund, budget, pay off high-interest debts and ensure they have health and life insurance coverage. Also, make sure to do estate planning and create wills.

Why do people love crypto so much?

Because it is so easy to trade digital assets, more people are getting into cryptocurrency. After stocks, mutual funds, bonds, and real estate, digital coins are the fourth most popular.

About 65% of these cryptocurrency investors have jumped into the asset category in the past year. In the same period, prices for some of the most popular cryptocurrencies have shown trademark volatility. Bitcoin rose to an all-time record high of $63,000 in April. It then plummeted to near $50,000 after which it rebounded.

The top reasons that people trade cryptocurrency are easy trades, excitement to invest in, and the potential for high growth over a short time. There is always a risk when investing in cryptocurrency.

Experts recommend that anyone who is interested in investing in cryptocurrency do their research first to ensure they fully understand the product.

Although cryptocurrency investing is still a complex space, it’s not impossible to invest in. However, price movements can now be explained and analyzed. Wild price fluctuations in crypto trading have a reason. It could be a tweet by a prominent crypto investor, or a country that enforces regulatory actions. Price movements in crypto trading were difficult to predict, and often caused by unknown factors.

This is why we don’t know the exact reason for the sudden rise in Bitcoin prices in 2017 and subsequent plunge within one year.

One reason cryptocurrency trading is becoming more accessible is that there are many crypto exchanges all over the globe. It is easy to create an account with your phone and begin investing. Many crypto-dedicated apps allow investors to create portfolios that can help diversify assets. This allows investors to invest in a variety of cryptocurrencies, allowing them to maximize their earnings and reduce overall risk.

One factor that has made cryptocurrency trading more attractive is the increased availability of insights from analysts on how to approach it — something that was unavailable a few years back. However, there are some critical obstacles that can prevent cryptocurrencies traders from achieving their goals.

What are the risks associated with the crypto-trading market?

Cryptocurrencies have evolved from a niche asset that was only accessible to tech billionaires and coders to a mainstream asset with millions of people investing in virtual currencies. There are many issues that can prevent cryptocurrency from becoming a popular asset class.

Important transactions may be delayed in the crypto trade, where price fluctuations are fast. Crowding is another critical problem that cryptocurrency investors must deal with. It is alarming that novice investors often invest in low-value cryptos believing they are worth something. Analysts make it clear, however, that these coins are unlikely to have a long-term value and will likely fall after a period when they surge rapidly.

Analysts believe that the next step in the evolution of cryptocurrency trading is creating awareness among investors. It is unregulated and there are many ways investors could be scammed. This is why it is important to remain cautious when trading cryptocurrency. Investors should be patient and informed about the evolving trends because of the volatility.


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