Five Reasons Why Millennials Trust Cryptocurrency More Than Stocks

Cryptocurrency is also referred to as digital assets, used as a form of exchange and also as a store of value. Lately, millennials are adopting digital currencies, even though cryptocurrencies had come into existence just over a decade ago, as a substitute for traditional financial systems. This implies that cryptocurrencies can be bought, sold, stored, exchanged only digitally. 

Currently, it has established itself as a new form of an asset class in the investment sector. According to a recent survey, 66% of millennials have more trust in cryptocurrency, than the stock markets. Moreover, it was found that millennials would prefer to trade in crypto exchange instead of stock exchanges. Let’s dive into the reasons why millennials trust cryptocurrency more than stocks.

Millennials and Cryptocurrency

Millennial’s spontaneous nature is closely related to the cryptocurrency market where it opens 365 days a year and operates 24×7. The user need not have to wait for business hours to open for trading or investing in a particular asset, as they operate round the clock. According to a survey, 90% of millennials said that they would invest more money into cryptocurrencies like Bitcoin than investing in the stock market. These factors say that cryptocurrency, even though it is a new asset class, perfectly fits into the millennial’s lifestyle.

Five Reasons Why Millennials Trust Cryptocurrency More Than Stocks

Millennials are interested in cryptocurrencies, and they have the needed tools to invest in this industry. Further, cryptocurrency transactions are becoming highly reliable and more people are moving towards cryptocurrency transactions. In the future, they might not need traditional financial establishments like banks and payment institutions for executing the transactions. In the long-term, millennials might use cryptocurrency transactions that offer advantages like anonymity and privacy. Here are the five reasons why Millennials trust cryptocurrency more than stocks.

  1. Yield high and faster returns

In 2009, Cryptocurrencies came into existence, and currently, it has outgrown gold and has become the top-performing asset class. Millennials are highly ambitious, and they look for investments that offer high returns in the short term. Even though there are not many assets that generate quick returns, we can say that cryptocurrency is an exception.

  1. Increased risk-taking

Cryptocurrencies are also known as highly volatile assets, as they offer huge profits and also huge losses that might wipe out initial investment. This implies that the risk and the returns are high; for millennials who prefer to take risks and like to try new assets to grow their portfolio, investing in cryptocurrencies is the best choice.

  1. An Alternative Investment

Alternative investment can be described as non-correlated assets; this means the performance of alternative Investments is not related to bonds and stocks, which comes under the traditional asset class. As an alternative investment, investing in cryptocurrencies can be taken as the best choice for the short term as well as for the long term. This can help the investors to pull through any monetary-financial crisis that might come up in the future. 

  1. Bitcoin – Strong Asset

Bitcoin is emerging as a strong asset to hold in 2021, as this cryptocurrency has surged over by 800%, by becoming the number one cryptocurrency according to coinmarketcap.com. Compared with the last few years, this year has seen a huge upsurge of crypto coins, people have started to invest in Bitcoin and have gained more profit than stocks. Experts believe that this rise may continue through the next few years, but they also remark that investors should be cautious.

  1. Constant Access

As cryptocurrency market trading sessions operate round the clock, millennials do not have any time constraints and they have constant access. When compared to a stock market that operates with stipulated business hours, that does not work on public holidays, and weekends, millennials can take advantage of the cryptocurrency market and capitalize on it.

Sum Up

To sum up, millennials can start trading with cryptocurrencies through a crypto exchange. Cryptocurrencies can be taken as an alternative investment for the long term.  Millennials can buy Bitcoins and other cryptocurrencies in any cryptocurrency exchange in India to invest and earn profits. Also, there are few Bitcoin exchange in India where millennials can purchase Bitcoins as a form of investment. Even though millennials can buy cryptocurrency in India, they need to proceed with caution as the cryptocurrency market is highly volatile.

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