According to a study by the Australian Securities Exchange, 46% of next-generation investors say they prefer stable returns. Around 31% of them have invested in crypto. The next generation is made up of investors between the ages of 18 and 24.
Among young investors, 28% prefer guaranteed returns, 46% prefer stable and reliable returns, 16% accept moderate variability in returns, and only 10% accept higher variability with the potential for higher returns.
The researchers said the reason behind this is that young people want to do something different from their parents. Since they are more tech-savvy and connected to social media, the next generation holds the most crypto, but when it comes to wealth accumulators, i.e. people between the ages of 25 and 49 , maximally accept higher variability with potential for higher returns.
Crypto Risk Aside, Young Aussie Is Interested in Crypto Investing
The study highlighted the fact that 29% of potential investors plan to invest in crypto in the next 12 months. Only 9% of investors have bought or sold virtual currency in the last 12 months. When it comes to the sex ratio, almost 69% of men have invested in digital assets, while only 31% of women have invested in crypto.
Thinking about crypto investing, the next generation contributes 13%, wealth accumulators (25-49 years old) contribute the most at 69%, pre-retirees contribute 15%, and only 4% retiree contribution.
The report shows that despite the inclusion of cryptocurrency as an asset, it highlights that people have shown interest in digital currency in addition to its volatile nature. Centralized virtual currency exchanges appear to be hampering the growth of the digital asset industry. The reason for this is the harsh rules and regulations implemented in the countries.
Stricter Rules Prohibit Crypto Transactions
The United States Security Exchange Commission (SEC) has put in place regulatory laws that still do not find favor with companies. Some of them, like Coinbase, face legal challenges. This shows the challenges faced by centralized exchanges.
In Australia, central exchanges are also facing some challenges. Australia's largest bank has taken a big step by blocking crypto transactions citing the reason as a security issue. The Commonwealth Bank of Australia has blocked payments from some digital asset exchanges as part of anti-scam measures and will limit customer payments in virtual currency.
Certain payment amounts are held for 24 hours and monthly transfer limits have also been set. All of this is implemented in order to spare the customer the potential risk of getting scammed. Bank Westpac has also blocked virtual currency payments.
Overall, the ASX survey study reveals that the younger generation is much more interested in digital assets in addition to nascent regulations. They are not afraid of risk and thus hold the crypto for a long time.
