Coinbase's latest "State of Crypto" report reveals a significant shift in the investment behavior of young investors in the United States. CEO Brian Armstrong points out that the traditional financial system can no longer meet the needs of the younger generation, and more and more young people feel "excluded from the traditional ladder of wealth accumulation," thus turning to non-traditional assets such as cryptocurrencies as alternatives.
While their stock holding rates are similar, there is a generational gap in asset allocation.
The report surveyed 4,350 American adults and found that the proportion of stock ownership across different generations was actually similar, with about 47% of younger investors and about 50% of older investors.
However, the report did not clearly define the age ranges for young people and older groups, but instead used Generation Z and Millennials, Generation X and Baby Boomers for comparison.
However, the real difference lies in asset allocation structure. On average, younger investors allocate 25% of their portfolios to non-traditional assets such as cryptocurrencies, derivatives, and private equity investments, while older investors allocate only about 8%, a difference of more than three times.
(Note: Generation Z is approximately 18–27 years old, Millennials are approximately 28–43 years old, Generation X is approximately 44–59 years old, and Baby Boomers are approximately 60 years old and above. Young people are roughly 18–43 years old, while older groups are roughly 44 years old and above.)
Young people are willing to try investing and expect the platform to offer more options for trading assets.
The survey shows that the younger generation is highly open to new investment opportunities, with 4 out of 5 young investors saying they are willing to try new investment targets earlier than others.
Meanwhile, 84% of young respondents expect investment platforms to offer more diverse asset options, rather than solely focusing on the traditional stock market. This can be seen from the chart below:
"Young investors are generally more optimistic about their own financial situation and the prospects of the US and global economies than older generations. Because they still have confidence in the future, they are more actively looking for new ways to get rich, such as embracing emerging assets like cryptocurrencies, rather than relying solely on the traditional financial system."
Younger people trade more frequently and are willing to take on higher risks.
In practice, younger investors trade significantly more frequently than older investors. The survey indicates that nearly 30% of young investors trade at least once a week, compared to only about 10% of older investors.
In addition, younger people are more likely to use margin trading and high-risk strategies, with 19% having used leverage and 26% deliberately choosing high-risk investments to pursue returns, both higher than older people.
The demand for 24-hour trading has become a mainstream expectation of the new generation.
The report shows that young investors have a very clear demand for a "24/7 market".
63% of young respondents hoped that the stock market could provide a 24-hour, 24/7 trading mechanism, and also showed great interest in new financial instruments such as cryptocurrency derivatives, leveraged products, and DeFi lending.
Traditional ways of getting rich are becoming increasingly difficult, and crypto assets are seen as an outlet by the younger generation.
At the level of public opinion, the younger generation's confidence in traditional ways of accumulating wealth has clearly declined. The survey indicates that 73% of young adults believe that accumulating wealth through traditional means is more difficult for their generation, compared to 57% of older adults who hold the same view.
Meanwhile, young investors hold twice as many cryptocurrencies as older investors, and 80% of young people believe that cryptocurrencies offer more financial opportunities that were previously unavailable.
The development of investment communities is accelerating, and the transformation of financial platforms is imminent.
In terms of investment decisions and information sources, young investors tend to rely more on self-research and community references rather than entirely on traditional financial advisors. They often get investment inspiration through TikTok, YouTube, Reddit, podcasts, and their social circles.
The survey also shows that over 60% of young investors are willing to try copy trading or social trading. Coinbase CEO Armstrong pointed out that these trends reflect the current financial system's failure to meet the expectations of the younger generation, making 24/7 markets and tiered risk products important directions for future platforms.
This article, "Coinbase's Latest Report: Traditional Finance Fails, Younger Generation Turns to Crypto Assets for a Way Out," first appeared on ABMedia, a ABMedia .
