Significantly, the report reveals not only the growing number of Gen Z investors, but also the ways in which they differ from the older generation of investors. Traditional investors usually hold a long-term approach, holding Bitcoin and other cryptocurrencies without selling them. Unlike them, Gen Z investors remain comfortable in placing frequent trades, based on the changing market conditions.
Changing Crypto Trading Practices in India
Notably, Gen Z investors are showing stronger selling activity compared to the older generations. This indicates that these people are seeing crypto as a more dynamic asset class. They no longer want to hold cryptocurrencies through every market cycle, without selling and making profits frequently. India’s Gen Z investors are more confident in booking profits, cutting losses, or moving their funds into other assets according to the market trend.
One of the main benefits of Gen Z investors is that their frequent crypto trading makes the Indian market more active. As they are more familiar with mobile trading platforms, social media trends, and real-time market information, they will be able to make faster reactions to crypto price movements.
However, active crypto trading cannot always guarantee profits. It also comes with risks. Frequent buying and selling activities can expose even experienced traders to sudden volatility. When it comes to Gen Z, their sudden emotional decisions could lead to trading losses.
Why Bitcoin and Dogecoin dominate investor interest
Surprisingly, Bitcoin and Dogecoin continue to be popular among the Gen Z group as well as the older investors in India. Other popular combinations included Bitcoin + Shiba Inu, Dogecoin + Shiba Inu, and Bitcoin + Ethereum. Investors between the 36 and 45 age group look for Dogecoin + XRP. At the same time, those aged 26-35 and above 46 are interested in Dogecoin + Ethereum.
Bitcoin still appeals to investors owing to its popularity and strong market presence. Dogecoin is the more popular option among people who are influenced by social media trends and online sentiment.
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Can Younger Traders Increase Short-Term Volatility?
The answer to this question is possibly yes. As Gen Z’s crypto trading style is active, their frequent buying and selling can increase short-term trading activity. This may also result in more price movements, especially during periods of high market uncertainty.
For traders, this could be seen as more short-term opportunities. But it has more risks as well. While quick trading decisions can bring gains, losses are also equally possible.
However, Gen Z alone cannot be blamed for market volatility. Global market trends, major investors, and macroeconomic events are the major drivers of crypto market movements and volatility.
Related: Crypto Trading Is Trending in India: What’s Driving Traders Toward Binance and Delta Exchange?