BigONE’s View: Why Do So Many Young People Invest in Cryptocurrency?

We’re currently witnessing a significant shift in investment behavior, as many young people are looking to invest in cryptocurrencies rather than regular stocks or bonds. In addition, the 2020 cryptocurrency boom opened a younger generation of investors’ eyes to the high performance of crypto products. BigONE would like to discuss why young people are increasingly choosing to put their money into cryptocurrency and how they can further maximize returns from this asset class.

Young people see cryptocurrency as a get-rich-quick scheme

Many young individuals consider cryptocurrency trading a quick path to success and a sure way to make their financial aspirations a reality. The advent of popular meme coins such as Dogecoin, which has risen in value by more than 6,000% in 2021, has also contributed to this perception. This surge in popularity of meme currencies like Dogecoin, Baby Dogecoin, and more recently, DogeCola has prompted many people to put all their money into cryptocurrency trading with the belief that they will reap big profits that would change their life.

Unfortunately, this ‘dream’ has resulted in several financial blunders for younger, newer investors. Even though some people have gained a lot of money from their investments in meme coins, BigONE believes that, as a rule putting all your money into meme coins is too reckless. We also want our users to know that young people take these risks because they are inexperienced in handling risk. While many young investors are prepared to accept a high-risk approach because they rationalize that they don’t have a lot of responsibilities at this point in their lives, this is not a sensible basis for an investment strategy.

The impact of new technologies

We want you to understand that social media can influence behavior. Social media has played a significant role in the acceptance of bitcoin by the younger generation. Because their generation is more comfortable with technology, these highly engaged social platforms disproportionally target young people to encourage them to use cryptocurrencies. The obvious fact is that young people have grown up in a digital world, so it’s no wonder that they prefer to invest in and trade with digital currencies. While social media can deliver many benefits, the risks remain because of the diverse quality of online experts and influencers and the likelihood that some will use these channels for their own gains rather than educate their followers.

How has the COVID-19 pandemic influenced cryptocurrency trading?

Before the pandemic, Bitcoin, the world’s most popular cryptocurrency, was worth roughly $7,300. A year later, the market appears to have risen by almost 640%. Among many other things, the simple fact of life people had to deal with was that everyone had to stay at home while high street financial institutions were often closed or operating with restricted hours. Conversely, because of their decentralized nature, cryptocurrencies have gained popularity as a payment option. As cryptocurrency prices began to rise, many young people could take advantage of them because of accessible technologies such as smartphones. Because they have been either unemployed or working part-time, primarily indoors during the pandemic, it’s given them time to explore money-making opportunities. Furthermore, the cryptocurrency investment and trading boom have made several young people millionaires, news of which has been widely shared on social media.

Trading cryptocurrency can be profitable, but it is essential to trade cryptocurrencies on the right cryptocurrency platform that gives people the opportunity to learn at a pace that suits them. BigONE has many useful features available for young people interested in trading cryptocurrency to guide them through the volatile market and help them understand and capitalize on every trading opportunity. Some of these key features include:

● Demo trading feature

BigONE has implemented a demo trading feature for new users to enable them to get a feel of cryptocurrency trading in a live market, but without the risk of losing money. This allows you to understand topics such as different order types and overall market dynamics by using this tool. Crucially, this is designed to help new users develop their cryptocurrency trading strategy before investing their money.

● BigONEpedia learning

BigONEpedia learning is a set of expert resources to help educate new users on trading strategies and important cryptocurrency processes and procedures for using an exchange, for example

● Support center

The BigONE support center is always available to help with any issues encountered with crypto, from account set up and beyond. The support center aims to create an effective communication channel with its users to help them maximize cryptocurrency trading, complementing our online communities such as on Telegram.

Closing thoughts

It’s okay to be ambitious and try to make a good return on your investment when you start as a young person. Still, it is also essential you minimize the risks by educating yourself about cryptocurrencies and trading strategies. Cryptocurrency trading on its good day is an extremely profitable venture, but it’s important to minimize the risks to sustain your gains in the long run. It’s also key to trade on a safe and reliable platform like BigONE, where you are supported with all the resources you need to succeed.

About BigONE

BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.