Studies have shown that there is a significant gender divide when it comes to cryptocurrency investing. For example, a survey conducted by financial website Finder.com in February revealed that nearly twice as many men as women invest in crypto (24% of men vs 13% of women).
However, according to data from one cryptocurrency exchange, the number of women investing in cryptocurrency is growing. Here’s the lowdown.
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Why do fewer women invest in cryptocurrency than men?
It is likely that female crypto investors lag behind their male counterparts for the same reasons that women have historically lagged behind men in more traditional investments.
For example, it could be because of the gender pay gap, which has traditionally left women with less disposable income. This translates to less financial security. As a result, women are more likely to protect their money and save what they can for the future rather than try to grow it through investments.
Another factor is that women are more risk-averse than men in general. Given that cryptocurrencies are among the riskiest investments, it’s no surprise that many women prefer to avoid them.
Lack of knowledge and confidence could also be holding women back from investing in crypto and other investments. Research shows that far more men than women express confidence and adequate knowledge about investments.
What’s happening with female crypto investors?
Recent data from Bitstamp, a leading European crypto exchange, shows that the number of women investing in cryptocurrency via the platform rose by 198% in the first three quarters of 2021 compared to the same period in 2020.
Further, the data shows the share of trading volume generated by female investors rose by 58% over the same period.
Age-wise, the biggest percentage of Bitstamp’s female traders were women aged 30 to 35. Meanwhile, the greatest volume generated came from women aged 55 to 60. These were found to be trading larger amounts of crypto than any other age category.
Commenting on these figures, Bitstamp’s chief commercial officer, Mel Tsiaprazis, said, “It is a great step forward to see increasing numbers of women participating both as individual investors, and founding their own trading firms.”
She added that the increased number of female investors in crypto is an indicator that “cryptocurrencies are becoming increasingly mainstream and they are here to stay, with more and more people wanting to access the benefits of crypto.”
What do you need to know before investing in crypto?
Cryptocurrencies seem destined to become an important part of the global financial system in the future.
However, for now, the big problem with crypto is volatility. Wild swings in prices are quite common in the crypto market. The Bank of England has previously warned that anyone who buys digital assets should be prepared to lose their money. In some countries, like China, crypto has been banned completely.
When it comes to crypto, you should only invest what you are willing to lose. If you are looking for a less risky way to invest your cash, then consider alternatives such as investing in stocks and shares.
Investing in Cryptocurrency is extremely high risk and complex. The Motley Fool has provided this article for the sole purpose of education and not to help you decide whether or not to invest in Cryptocurrency. Should you decide to invest in Cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.