Are You a Crypto Addict? Freetrade Executive Says Bitcoin is a ‘Gateway Drug’ For Millennial Traders
Whether it's short or long position trading, cryptocurrency investment is a highly absorbing field for new and existing buyers alike. But with the respective boom and bust of BTC this year, the generation of Millennials that have grown up around cryptocurrency are at risk of it becoming a ‘gateway drug,' leading them into other areas of stock market trading.
This is according to Adam Dodds, the founder of the new and emerging Fintech company, Freetrade, in which he comments on the impact it has on a younger generation of investors.
“It operates like a gateway drug, but rather than something more commonly known like Marijuana or Heroin, it was a drug leading to something better,” according to the entrepreneur, who officially launched the company last month.
Across the span of December 2017 right to now, Bitcoin has undergone a dramatic, negative roller coaster, surging to hit a peak of roughly $20,000 in December 2017, falling to hit $3,100 in the same time this year.
The surge in the value of Bitcoin and its tumultuous rise and fall has served as a gateway drug, with the crash causing a respective one in its young users, compelling many of them to move over to more conventional investing.
Dodds went on to argue that this has caused young people to move from a digital asset which is volatile, to the more tried and tested varieties.
“Young people are waking up to the fact that they can invest their money in a smarter way, moving to a system of investing after the crypto fad.”
Freetrade, the startup based in the UK has officially developed and has launched an app which allows its existing, newly youthful consumer base of over 10,000 to take part in the trade of UK-based stocks from the various FTSE branches. The plus side of using this app is that they come with no transaction fees to buy and sell, and there are no minimum portfolio sizes.
While this method of investing does provide more in the way of solidity in stark contrast to the volatility presented by the likes of Bitcoin and Ethereum, they are not without their issues. Stocks within the United Kingdom have since been hit on a constant basis with the repercussions of uncertainty thanks to the ongoing developments surrounding Brexit.
While this is something that may turn off a number of people from getting involved in stock trading, Mr Dodds doesn't believe it will have a significant impact on the app.
In this period of uncertainty from the crypto market, Dodds continues,
“Traders should realize that there is a serious opportunity for getting stocks cheap not and capitalizing on their rise as the Brexit uncertainty begins to recede.”
“The stock market is not the hottest thing right now. There are market ups and there are market downs, but it is actually the best time to start buying, because you know it is going to go up again,” said Mr Dodds.
He argued that people should still take the opportunity to “Experiment” with various cryptocurrencies, and investing in it as a “bit of fun.”