Wealthy millennials are getting their money advice from TikTok — and they’re pouring cash into crypto

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A diverse group of young people looking at their phone.
53% of individuals ages 21-42 get their cryptocurrency advice from social media, in response to a brand new report by Bank of America.

  • The crypto market crashed in May 2022 and bitcoin has misplaced nearly half its worth within the final six months.
  • But rich buyers between ages 21-42 are nonetheless investing in crypto, says a brand new research by Bank of America.
  • Over half of younger individuals investing in crypto get their advice from social media platforms, like TikTok.

The worth of bitcoin has dropped 48% within the final six months. But in response to Bank of America’s 2022 Private Bank Study of Wealthy Americans, rich millennials are nonetheless pouring cash into crypto. 

Stories of people losing their life’s savings when the crypto market crashed earlier this 12 months in May did not scare individuals ages 21 to 42.

According to the research, carried out between May and June 2022, 75% of rich younger individuals — outlined as excessive web value and extremely excessive web value — agreed that it is now not attainable to realize above-average returns in conventional investments like stocks and index funds, in comparison with 32% of rich individuals ages 43 and up.

Rich younger buyers consider crypto might help them construct extra wealth

In the research, 29% of rich younger buyers stated crypto presents a number one alternative to construct wealth, with actual property as a detailed second at 28%. On the opposite hand, 41% of older buyers stated conventional investments, comparable to shares, index funds, and mutual funds, are the main technique to construct wealth.

Despite the volatility of cryptocurrency, thrice as many younger buyers consider that cryptocurrency is an efficient long-term funding automobile in comparison with older buyers. 

Financial experts suggest that crypto buyers stability their riskier bets with safer, extra conventional investments like shares and bonds, and say crypto ought to make up a really small portion of your portfolio, ideally less than 5%.

Young buyers surveyed by Bank of America stated they allocate 15% to cryptocurrencies, whereas these aged 43 and up stated they solely make investments 2% of their cash in crypto.

Over half of younger buyers get crypto advice on social media

More than 60% of younger individuals stated they perceive cryptocurrency fairly nicely, in comparison with 12% of rich individuals ages 43 and up; younger buyers stated they get the vast majority of their crypto advice on social media platforms like TikTok, Instagram, or Reddit. 

Older buyers stated they flip to web analysis or skilled advisors at larger charges than younger individuals.

There’s no technique to know the way the crypto market will react to rising inflation rates and a looming recession. But for those who resolve to begin investing or proceed investing in crypto, simply know many rich millennials are on the journey with you.

Read the unique article on Business Insider

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