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- The crypto market crashed in May 2022 and bitcoin lost half of its value in the last six months.
- But wealthy investors between the ages of 21-42 are still investing in crypto, according to a new study by Bank of America.
- More than half of young crypto investors get their advice from social media platforms, such as TikTok.
The price of bitcoin has fallen by 48% in the last six months. But according to Bank of America’s 2022 Private Bank Study of Wealthy Americans, wealthy millennials are still pouring money into crypto.
Stories of people losing their savings when the crypto market crashed earlier this year in May didn’t scare away 21- to 42-year-olds.
According to the survey conducted between May and June 2022, 75% of the young affluent — defined as the highest and highest net worth — agreed that it is no longer possible to earn above-average returns on traditional investments such as stocks and index funds. , compared to 32% of the wealthy 43 and older.
The young rich believe that crypto can help them build more wealth
In the survey, 29% of young affluent investors said crypto offers a great opportunity to build wealth, with real estate a close second at 28%. On the other hand, 41% of former investors say that traditional investments, such as stocks, index funds, and mutual funds, are the primary way to build wealth.
Despite the volatility of cryptocurrency, three times as many young investors believe that cryptocurrency is a long-term investment vehicle compared to older investors.
Financial experts recommend that crypto investors weigh their riskier bets against safer, more traditional investments such as stocks and bonds, and say that crypto should will make up a small portion of your portfolio, ideally less than 5%.
Young investors surveyed by Bank of America said they put 15% into cryptocurrencies, while those 43 and older said they only put 2% of their money into cryptocurrencies .
More than half of young investors get crypto advice on social media
More than 60% of young people said they understand cryptocurrency well, compared to 12% of wealthy 43-year-olds and older; Young investors say they get most of their crypto advice from social media platforms like TikTok, Instagram, or Reddit.
Older investors say they turn to Internet research or professional advisors at higher rates than younger ones.
There is no way to know how the crypto market will react to the impending inflation and recession. But if you decide to start investing or continue investing in crypto, just know that many wealthy millennials are right there with you.