It appears that Gen Z investors are most likely to use copy trading and trust financial advice received on social media.
Crypto exchange Bitget's recent report revealed that Generation Z (Gen Z) is at the forefront of the rising trend of crypto copy trading, with nearly half of all such traders falling into this age group.
The report, released on August 3rd, details the distribution of crypto copy traders across different age groups. Among Bitget's copy trading users, 44% are under 25, making them the largest group engaged in this investment strategy. They are followed by those aged between 25 and 35, comprising just under one-third of all copy traders.
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Crypto copy trading is a practice where one individual copies the trading actions of another individual. It is an approach that has taken root both in the traditional stock markets and in the crypto world, with exchanges like eToro, MEXC, and Bybit among those offering this service.
The reasoning behind Gen Z's preference for copy trading seems to be their tendency to rely on social media influencers for investment decisions. It is worth noting that this idea was also supported by the Forbes Advisor survey published in January.
According to the survey, around 80% of both Gen Z and millennials admitted to taking financial advice from social media platforms, with YouTube, TikTok, and Reddit being the most trusted. Additionally, half of the respondents claimed to have profited from this advice.
The popularity of crypto as an investment among Gen Z is also supported by other data. A May report by the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation highlighted crypto as the top investment choice for this generation.
Geographically, Bitget's report also sheds light on the regional distribution of copy trading users. Nearly one-third of these users were from Western Europe, while almost half were from East or Southeast Asia. Interestingly, although African users made up only 1% of Bitget's global copy traders, they displayed the highest regional interest in copy trading at 62%.
Gen Z's attraction to crypto copy trading, strongly influenced by social media, paints a compelling picture of changing investment trends. This affinity for new investment methods, tied with a willingness to explore alternative financial advice channels, underlines a shifting landscape that could redefine how future generations approach investing.
