The crypto trading realm has seen a surge of fresh, young faces. The Bitget study suggests that Gen Z, the digital natives, are the new enthusiasts in copy or social trading, where an investor’s moves mirror another’s. It appears that youngsters tend to dip their toes into this trading style more than any other demographic.
Bitget dropped a bombshell on Aug. 3, shedding light on the intriguing world of copy trading. The revelations are startling. Almost half, 44% to be precise, of all copy traders on Bitget were whippersnappers under the age of 25. Hot on their heels were those between 25 and 35, who constituted just shy of one-third of the entire copy trading population.
Older folks, spanning the 35 to 55 age group, constituted a mere 17% of the copy trading community, and those above 55 barely scraped together 7% of the total population.
Copy trading, or its trendier cousin social trading, has been a mainstay feature on traditional stock exchanges as well as crypto platforms. eToro, Bybit, and MEXC are a few examples of crypto exchanges where investors can play follow-the-leader with their trades.
The idea is simple. Select a trading maestro, use an automated tool, and voila, you’re now echoing their every move in the market.
Bitget’s report hints that Gen Z’s fondness for social media could be the secret ingredient in their copy trading recipe. Gen Z is known for having their finger on the pulse of trends, so it’s no surprise that they’re turning to influencers for investment advice.
Earlier in the year, Forbes Advisor revealed in a survey that a whopping 80% of Gen Z and millennials trust financial advice from social media, with half of them claiming to have made a tidy sum from such advice. YouTube, Reddit, and TikTok were the darlings of these digital trendsetters.
Crypto emerged as Gen Z’s top investment choice in a report published in May by the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation. Roughly 44% of American Gen Z investors had their maiden investment voyage with crypto, followed closely by 35% of millennials. Crypto was also the first investment for 43% of British and 35% of Canadian Gen Z investors.
Bitget’s report revealed that most of its copy trading users were from Western Europe, making up nearly one-third. However, the combined numbers from East and Southeast Asia nearly matched Europe’s, showing the region’s growing interest.
Africa, despite representing a mere 1% of Bitget’s global copy traders, boasted the highest interest in copy trading with a staggering 62% of users from the continent showing interest. The fascination with this trading style seems to have spread across the globe, from the African plains to the bustling streets of Asia and the historical cities of Europe, with Generation Z leading the charge.