eToro Conducts Massive Study on the Demographics Behind Crypto Investors
Online trading platform eToro recently completed a massive study on the demographics behind cryptocurrency users. According to eToro, the average cryptocurrency user is either a male student, a male IT services professional, or a male salesperson.
eToro published the full results of the study online at their blog here.
The study used data collected between March 2017 and February 2018. eToro analyzed the profiles of those investing in cryptocurrencies using their platform. They looked at everything from age to gender to job sector. They also viewed how cryptocurrency investors see themselves – and how users perceive the average crypto user.
Ultimately, as mentioned above, the study’s main results weren’t too surprising: cryptocurrency users are overwhelmingly male. They’re typically employed in sales, marketing, or IT roles. Some are students. Some are retired. Let’s take a look at some of the notable information from the study:
Portfolio Allocations Hardly Vary with Age
The proportion of your portfolio allocated to different cryptocurrencies changes slightly with age – but probably not as much as you think.
Ripple, interestingly enough, was the most popular cryptocurrency across all age groups. Investors in all four measured demographics held more Ripple as a percentage of their portfolio than other currencies. Approximately 20 to 25% of the average investor’s portfolio was devoted to Ripple.
Meanwhile, the proportion of an average portfolio allocated to bitcoin changed with age as well. Younger investors between ages 18 and 23 held approximately the same amount of bitcoin (20%) as investors age 55 and older, while the number dipped to around 16% for investors age 24 to 54.
All other cryptocurrencies remained largely the same across investors’ portfolios in terms of age. Litecoin was slightly more popular with younger investors and NEO was slightly more popular with older investors. Aside from small differences, however, older and younger investors are investing in cryptocurrencies in a very similar way.
Most Investors Are Inexperienced
You might think of cryptocurrency investors as looking like expert analysts and quant traders; in reality, this isn’t the case.
Most cryptocurrency investors have little background in cryptocurrency investing. The vast majority of users surveyed in the eToro study ranked themselves as “novice”, with only about 10% rating themselves as “intermediate” and 5% rating themselves as “advanced”.
Crypto Investors by Occupation
The top five most common occupations for crypto investors were:
- Computer/IT Services
- Finance Industry
Other listed occupations, in descending order of commonality, included “building construction”, architecture/engineering, social services and education, healthcare, tourism, legal, arts and design, retired, and real estate. Yes, “building construction” was the next most-likely occupation after “finance”. That’s surprising.
The Vast Majority of Cryptocurrency Users Are Male
The cryptocurrency industry has always been overwhelmingly male, and the eToro study certainly reinforced that idea.
- Among eToro crypto users, 91.5% are male and 8.5% are female.
- Women Prefer Investing in Ethereum Classic, Bitcoin Cash, and Litecoin
- The gender breakdown wasn’t surprising. However, what was surprising was the difference in how men and women invest.
- Across most currencies, men and women were pretty much equal in their investing behavior. However, there were some small differences in certain cryptocurrencies:
- Men were 2% more likely to invest in Ripple (XRP) compared to women
- Women were 0.5% more likely to invest in Ethereum Classic, Bitcoin Cash, and Litecoin
- Women were also slightly more likely to invest in Dash, Ethereum, and Stellar, although the difference was very small
Cryptocurrency Users Generated the Most Profits from Ripple, Ethereum, and Litecoin
eToro looked at the average yields across cryptocurrency users in an attempt to rank cryptocurrencies by their profit margins.
- Ripple was the most profitable cryptocurrency for investors on average, generating an average return of 8%
- Ethereum (6%) and Litecoin (3%) were the next two most-profitable cryptocurrencies by average yield
- The only cryptocurrency to provide users with a significant loss, on average, was Bitcoin Cash (BCH); BCH holders lost an average of 3%
Ultimately, the eToro study isn’t very detailed. The company hasn’t published any hard data that it collected, and the graphs don’t even come with numbers beside each entry, making it difficult to get specific information. Nevertheless, you can view the full results of the study here.