In the constantly changing world of crypto, a new trend is taking root, and Generation Z is at the helm. Recent report from Bitget, a leading crypto derivatives and copy trading platform, reveals that Gen Z, those under 25 years of age, account for a whopping 44% of all copy trading users. This trend underscores the growing influence of the youngest generation in the crypto market, as they navigate the volatile seas of digital currencies.
Copy trading, or social trading, is an investment strategy where investors mirror the trades of experienced traders. This method has gained traction in both traditional stocks and crypto markets, with services like eToro, Bybit, or Bitget offering these options. One of the most innovative players among them is Iconomi, a prominent digital asset management platform, often chosen by young people. Thanks to their easy-to-navigate interface and app, Iconomi appeals to the tech-savvy generation that values quick access, transparency, and the ability to customize their investment portfolios on the go.
The Bitget report shows that Gen Z's affinity for social media and influencers is a significant factor in their preference for copy trading. A January Forbes Advisor survey found that around 80% of Gen Z and millennials took financial advice from social media, with half claiming to have made money from the advice received. Platforms like YouTube, Reddit, and TikTok were the most trusted sources.
Interestingly, the older generation is not left out of this trend. Those aged 35-55 make up 17% of copy traders, while individuals over 55 account for 7%. Despite their smaller numbers, these older traders show a high interest in copy trading, seeking professional investment insights.
The first half of 2023 saw over 109,000 followers reap profitable returns from copy trading techniques, resulting in more than 74 million in cumulative profits in USDT terms. Bitcoin was the most common asset traded via copy trading, accounting for 52%, followed by ETH with 44%.
The rise of copy trading is part of a broader trend in the crypto world. The Insight Partners project that the social trading industry will grow at an annual rate of 7.8%, reaching a valuation of $3.77 billion by 2028. As the crypto market continues to evolve, the influence of Gen Z and the trend of copy trading are likely to shape its future.
