Alternative Investments: How Millennials Invest: Research Finds Cryptocurrencies More Popular Than Mutual Funds | News

The report “How Millennials See Their Financial Future” surveyed 1,200 millennials about their investments
Result: Most would like to invest more in alternative forms of investment such as cryptocurrencies, real estate and the like

But it’s not easy – more than half of millennials don’t know how to approach investing

39 percent of millennials (aged 25-40) invest in cryptocurrencies such as Bitcoin & Co. A similar number (42%) of own shares, investment funds are much less popular. Here are the results of the research of the investment company Alto: In the report “How Millennials See Their Financial Future” published in the first half of 2022 (Ger. earn $ 35,000 in annual household income.

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Report: Alternative forms of investment need to be more accessible

Although, according to the survey, 89 percent. I don’t know how to make such an investment. However, most (85 percent) would like to learn it – only eight percent of millennials with financial advisers said they were not interested in investing in cryptocurrencies and the like.

That is why Alto writes in the report: “There is a desire, but to realize it, it is necessary that the subject of alternative investments becomes more accessible and understandable.”

Crypto is becoming more and more important in retirement planning

This is especially important as cryptocurrencies and other alternative investments play an increasing role in retirement planning: as many as 70 percent of cryptocurrency and IRA (Individual Retirement Account) holders have placed some of their cryptocurrencies on an IRA. About 76 percent, the vast majority of millennials who invest in stocks, fear that the crash will throw their savings into the air. Slightly fewer millennials (74%) consider investing in stocks to be as risky as gambling for the layman.

Millennials do not have enough money to save for retirement

However, people between the ages of 25 and 40 must first have the means to maintain their retirement pension. “In a world of relentless consumption, rising costs of living and rising student loan debt, it is difficult for them to invest in the future because they can hardly afford the present.”

In addition, as with wages, there is also a gender gap in the area of ​​alternative investments: while 39% this. Similarly 38 percent. of men assume that thanks to their investments they will have sufficient funds for retirement, which was confirmed only by 15 percent. women. And while 28 percent of men have assets worth more than $ 250,000, only 17 percent of women can say the same for themselves.

Cryptocurrencies are gaining popularity faster than the internet

Overall, however, according to a Blockware Intelligence report, cryptocurrencies have become much more popular than other innovations – such as cars, electricity, cell phones, and the Internet. According to the report, “All breakthrough technologies have a similar exponential S-curve pattern.” [] Newer, web-based technologies are still being adopted much faster than the market would expect. ‘ This could fall into the hands of millennials who have already invested in cryptocurrencies – because the greater the demand, the more expensive the commodity and the greater the profit investment value of the younger generation.

Editors of finanzen.net

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