Breaking stereotypes in cryptocurrency markets

More women and older Australians are investing large amounts in cryptocurrencies, breaking the stereotype that traders are mostly younger males, according to a new report by BTC Market (BTCM).

An analysis of data from BTCM’s cryptocurrency platform and a survey of its users, shows that almost one in four of today’s crypto investors is over the age of 44.

BTCM found that there was a 15 per cent growth in cryptocurrency investors aged over 60 years in the past financial year, the biggest increase of any age group after 18- to 24-year-olds on the platform (up 24 per cent).

BTCM CEO Caroline Bowler says a low interest rate environment is a key factor behind older Australians seeking investment opportunities in alternative assets like cryptocurrency.

Breaking another stereotype, BTC Markets has also picked up increased activity from female investors, with 172 per cent growth in new users compared to 79 per cent growth in male investors.

In the 2021 financial year, female investors traded twice daily on average, compared to five times for males, suggesting a structured trading strategy with a smaller range of more focused positions.

“More women trading cryptocurrency dispels misconceptions around cryptocurrency investors being risk lovers,” says Bowler.

“This is because behavioural finance studies have found women to be more risk-averse in their investment decisions than men.”

Female investors also deposited larger amounts at the outset ($2,381) compared to their male peers ($2,060).

The BTCM survey found that the number one motivation for Australians investing in crypto was to build wealth (70 per cent), followed by a third (34 per cent) looking to retire early and for portfolio diversification (28 per cent).

A smaller proportion relies on cryptocurrency for short or medium-term goals such as paying down debt (12 per cent), holidays (6 per cent) or as an investment to start a business (4 per cent).

Bowler says the number of companies using the BTCM exchange during the 2021 financial year grew by 63 per cent.

“Companies that invest and trade with us are generally in the small to medium-sized enterprise category," she says.

Looking forward, she expects more companies to follow suit in adding digital assets to their balance sheets, whether as a natural hedge against fluctuating fiat currencies or as part of a corporate strategy to embrace modern, open technologies.

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