With crypto becoming such a hot, albeit polarizing, topic of discussion and such an unexpectedly influential financial instrument, increasingly integrated into the mainstream, it may seem like everyone wants to take part in the crypto market. You can find plenty of online guides teaching you how to buy cryptocurrency, with detailed information about all the steps you have to follow to purchase coins and add them to your portfolio.
However, not everyone is as keen on embracing digital currencies. Some remain reluctant to invest in crypto, unconvinced of their worth, reliability, and potential, while others downright refuse to acknowledge or accept crypto as a viable asset class. These mixed attitudes are understandable, considering the novelty, volatility, and technical complexity that crypto exhibits.
When it comes to the demographic composition of those who do trust and invest in crypto, studies point to Gen Z as the biggest supporters. People in this cohort appear much more likely to invest in digital currencies than older generations, so let’s look into their motivations and mindset and see what drives this behavior.
Gen Z and their financial inclinations
Gen Z or Zoomers, as they’re also referred to, represent the population segment comprised of people born between 1997 and 2012, following Millennials and preceding Generation Alpha. This means they are currently between 13 and 28 years old, being the youngest generation that actively participates in finance.
YouGov’s 2025 US Investments Trends Report, a study that examines generational differences in an investment context, reveals that almost half of Gen Z investors (48%) engage in crypto trading on dedicated exchanges, considerably more than other demographic groups. The percentage of Zoomers who invest through banks and credit unions is notably lower, at 40%, and even fewer seek assistance from financial advisors (32%). Gen Z is also four times more likely to own crypto than to have a retirement account.
Another study, from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the CFA Institute, shows that most Gen Zers get their financial information from the internet, with social media being the go-to educational source for 48% of them.
Digital by default
Like all generations, Zoomers have their own distinct characteristics, and perhaps their most defining trait is being the first digital-native generation. And here is the first clue that might explain their financial habits and their proclivity to invest in crypto.
The world that Zoomers were born into was already steeped in digitalization. Access to the internet, which other generations didn’t benefit from, is something they take for granted, as they’ve never known life without it. They’re not just more comfortable around digital tools and innovations than their older counterparts, but they’re inherently drawn to them. This tech savviness might be at the root of their crypto acceptance.
Crypto has introduced a new paradigm for money, one that is fundamentally different from traditional financial products, such as stock, bonds, or commodities, which are controlled by central institutions and governed by long-established regulations. Since digital currencies don’t follow the same rules or have the same structure as conventional assets, it’s not surprising that many struggle to comprehend how crypto functions or what it represents, despite its growing popularity.
However, for most Gen Zers, crypto isn’t as big a mystery as it is for Millennials, Gen X, or Baby Boomers. While crypto’s intricate architecture and fear of the unknown might act as a deterrent to invest in crypto for older demographics, Gen Z is more knowledgeable of digital tools in general, and therefore less reluctant to adopt them.
That’s not to say all Zoomers are tech whizzes, but the fact that they’ve been surrounded by and interacted with digital products all their lives certainly makes them better prepared to engage with technical innovations such as crypto, and understand all the aspects it involves, such as blockchain technology, creating wallets, buying crypto on an exchange, reading whitepapers, and so on.
Risks vs rewards
If there’s one thing crypto is known for – aside from its remarkable growth – it is its volatility. Crypto may have had a meteoric rise and may be able to address a lot of issues, but for all its potential and popularity, it remains risky and unpredictable. Prices can suffer dramatic shifts in a very short timeframe, with no prior warning, and while that might offer opportunities for profit, it can also lead to huge losses.
Gen Z is well aware of this reality. The YouGov report shows that 83% of American investors think that crypto is a risky option. They know that the price performance of digital currencies can be influenced by a multitude of factors that no one can control, and that can have dire consequences for those who don’t take the necessary precautions. And yet, according to the FINRA study, 55% of Gen Z investors have included crypto in their portfolios, while only 41% have invested in stocks.
So, if Gen Z is not oblivious to the risks of crypto investing, why do they do it anyway? Well, the same study explains that the cohort has a relatively high risk tolerance, with 46% of them demonstrating moderate or high risk tolerance, which is rather unusual for such a young population that hasn’t had time to gain much experience in the investment realm.
Then again, one has to recall that Gen Z is no stranger to financial challenges, having been impacted by two recessions: the one caused by COVID-19 in 2020 and the Great Recession, between 2007 and 2009. So, it’s not just their familiarity with digital innovations that drives their interest in crypto, but also their lack of trust in the traditional financial system, whose shortcomings they’ve experienced firsthand. Besides, 70% of Gen Zers express confidence in handling their own investments as they see fit, as shown by YouGov’s report.
Gen Z and crypto have both emerged and grown in the era of the internet, and lived through similar hardships, which helped create a bridge between them. But even though Zoomers may feel confident about engaging with crypto, they should remain wary of the existing issues and consider diversification to reduce risks and protect their portfolios.
