Young people chasing thrills are using internet applications to invest in high-risk crypto-assets and foreign exchange, despite the fact that most are unable to handle large losses, according to the Financial Conduct Authority of the United Kingdom. The findings show that young people are becoming more and more involved in high-risk investments.  They are mainly young, under 40, and from a BAME background, according to the FCA, and they use social media for tips and news for making decisions. A lot of countries have made special warnings in order to prevent them involving in high-risk virtual coins, for example, bitcoin which is very volatile and risky for not only young people but professionals as well. One of the main reasons for their active involvement in the crypto-industry was due to the global pandemic and people were stuck at home during the lockdown and had a lot of time to try themselves in many different aspects.

The published statement says that emotions and thoughts, such as the excitement of investment, and social considerations, such as the prestige that comes with a sense of ownership in the businesses they invest in, were found to be important factors in many investors’ decisions to invest, according to the study. Sheldon Mills, executive director of the FCA’s market and competitiveness group announced that they were concerned that some investors are being enticed to purchase higher-risk goods that are unlikely to be appropriate for them, often by online advertisements or high-pressure sales strategies. The Financial Conduct Authority is planning to launch a campaign that would make it clear for the newcomers, how important it is to find out valid information about the possible risks prior to investing.

Gen-Z involvement in the crypto-industry

According to the 2019 research, Generation-Z is the largest generation in the world. Du to the fact that they are dominating demographically, they are considered as an important role-player in the crypto-industry and blockchain system.  While just 9% of the overall number owned Bitcoin, 18% of the 18-34-year-olds polled had an interest in the digital currency, according to a Blockchain Resources study of more than 2,000 adults in the United States. Despite the fact that this involves both Gen Z and millennials, it demonstrates that crypto awareness and participation are strongly biased towards the younger generations. For some people, it might sound bizarre that become involved in the financial market in the 20s is very not serious because they do not have enough knowledge and just dependent on luck, however, they are using the tools more wisely in this case and the industry gives them that opportunity too. They receive great help from the specially created software which has implemented different tools, for example, such as Forex news trading signals that are a series of analyses that assist a trader in determining whether to purchase or sell a currency pair at a certain time. They can be based on charting instruments, news-based activities, or technical analysis, and are also known as Forex signal systems.

However, it becomes very difficult to understand what are the main reasons for their interest in the crypto-industry as they prefer to stay anonymous, and more often their voices are not heard about that. However, one of those reasons is to achieve financial independence at a younger age, than it would be possible with using other sources and tools for that.

According to some assumptions, generally young generation should not be able to start the active investment in cryptocurrencies, because it demands savings and they do not have enough income for that. However, they did not take into account that they are well-educated and politically active, have an access to a lot of information that helps them to define the exact steps. Moreover, they are very advanced in using new technologies and software that make them superior to the older generation. Moreover, the field itself gives them the opportunity to become involved in it, as it does not require any age verification, identity cards, or so on, as every step are conducted anonymously, so it does not matter for the system who is executing the exchange, 40 years old person or someone in his/her 20s. Compared to the millennials, Gen-Zs are more GIY generation, which means that they are using different sources or platforms, such as Youtube or TikTok to find out about different strategies and they share the information and tools more often than other generations.

Summing it up

Finally, to sum up, there are a lot of new changes in many different fields and digitization of many of them is a common characteristic. Due to the fact that new generations are primarily raised with contact to many different technologies, it is easier for them to adapt to such kind of changes. When it comes to the financial market, only advanced technical skills are not enough as it is a matter of their own capital and savings and it is way riskier, but we should not forget that they are the DIY generation too and have the ability to absorb the information form anything and anywhere, most commonly online platforms that give them the possibility to share different information and tips widely.

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Source: https://cryptoverze.com/young-people-involvement-in-crypto-industry/