eToro Research Study About “Who Are The Cryptocurrency Investors”?
Virtual currencies expanded everywhere around the world, and when they skyrocketed the last year, they attracted the attention of several investors. Billions of dollars have entered the market, and volatility helped an unknown number of traders to profit from it.
But some questions arise: who are the investors behind these new projects? One of the most important financial platforms, eToro, decided to conduct a research where they analyzed crypto investors and their characteristics.
One of the first points that has been analyzed by eToro was the age range of crypto investors. They separated four age groups (18-23, 24-35, 36-54 and 55+) and linked that with the favorite cryptocurrencies purchased. It is surprising to discover that most virtual currency investors are not linked to a specific age range. There are no big swings between groups or virtual currencies. This is important because crypto investments are generally related to younger generations.
What the study found is that the majority of the investors is novice, and they are trying to learn on the way. Just a small fraction of the traders and investors has an intermediate or advance knowledge.
Another interesting fact that eToro unveiled is that investors come from different industries. There is no defined economic sector that has invested in virtual currencies. For example, the most important occupations investing in the market are Computer/IT Services, Sales/Marketing, Students and Finance Industry.
The other half is composed by ‘no specific occupation,’ building and construction, architecture/engineering, social services and education, health care, tourism, legal, arts and design, retired, and real estate.
It is important to mark that the study confirms that most of the investors are males. Only 8.5% of the total investors are women, which is a very low number.
At the same time, Women are more likely to invest in some specific cryptocurrencies than others. For example, Ripple (XRP) and NEO (NEO). Stellar (XLM) and Ethereum (ETH) are almost neutral. While Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum Classic (ETC) are preferred by males.
eToro was also measuring the average profitability of the investments performed by the investors. We can see that Ripple was able to yield 8% profits, Ethereum 6%, Litecoin 3% and Bitcoin near 2%. Bitcoin Cash, was the worst performing with -4%.
eToro was able to perform an interesting study about virtual currency investors that proved some of the things that most of us thought about (males participate more in the market than women). But at the same time, it showed that there is now defined age for investing in the crypto market.