The crypto exchange found that younger investors are more inclined to participate in copy trading or social trading and seek guidance from social media influencers.
According to a recent report from crypto exchange Bitget, Generation Z crypto investors are more likely to engage in copy trading or social trading, which involves mimicking someone else’s trades.
Bitget’s report, published on August 3, revealed that among all its copy traders, 44% were under 25 years old. The next largest group was the 25- to 35-year-olds, making up just under one-third of all copy traders.
On the other hand, the older age groups had a smaller representation in copy trading. The 35- to 55-year-olds constituted 17% of copy traders, while those over 55 were only 7% of the total.
Bitget’s copy trade user figures show Gen Z and millenials make up the bulk of users. Source: Bitget
Copy trading, also known as social trading, is a feature available in both traditional stock markets and the cryptocurrency space. Several crypto exchanges, such as eToro, Bybit, and MEXC, offer this service to their users.
With copy trading, investors have the option to use an automated tool that replicates the positions opened and managed by a specific individual of their choice.
This means that if a skilled trader makes certain trades, the tool will automatically copy those trades for the users who opt to follow them. This way, users can benefit from the expertise of experienced traders without having to actively manage their own portfolios.
Gen Z’s Attraction to Copy Trading and Crypto Investments
According to Bitget, Generation Z’s preference for social media influencers as sources of investment advice might explain their inclination towards copy trading. Around 80% of Gen Z and millennials, as revealed in a Forbes Advisor survey in January, seek financial advice from social media, with platforms like YouTube, Reddit, and TikTok being the most trusted.
Crypto emerged as the top investment choice for Gen Z, as per a May report by the CFA Institute and FINRA Foundation. In the United States, 44% of Gen Z investors began with crypto investments, compared to 35% of millennials. In the UK and Canada, 43% and 35% of Gen Z investors, respectively, also opted for crypto as their first investment. This shows the growing popularity of cryptocurrency investments among younger investors.
According to Bitget’s report, the majority of its copy-trading users, almost one-third of them, were from Western Europe. The next two largest geographic segments consisted of users from East Asia and Southeast Asia, which together made up nearly half of the copy-trading users.
Bitget’s copy traders by region show Latin Americans were the fourth largest group. Source: Bitget
Even though African users comprised only 1% of Bitget’s global copy traders, a significant 62% of them expressed interest in copy trading. This was the highest proportion among all regions, indicating a strong appeal for this investment method in Africa.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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