College Students Love Crypto! Long Game Means Many Young Investors Aren’t Nervous … Here’s Why

Last Updated on May 31, 2021

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College students and 20-somethings adore crypto, and the love affair may not be ending anytime soon. Despite the huge dip in the last few days, many investors between 18 – 28 are playing a long game. They’re not planning on cashing out this year. So they’re willing to ride it out. 


Studies Show…


According to research, Gen Z and millennials make up the bulk of crypto investors, with over 94 percent of all new buyers falling into the “young investor” category. Though it likely has to do with technology competency in younger generations, confidence in the market also plays a big factor, with college-aged individuals seeing it as a safe long-term investment.


According to a study by College Finance, more than 60 percent of the 500 college students and recent grads asked felt crypto was a good long-term investment, and 24 percent were ready to dive into a “moderately aggressive” risk. For many college students, especially those currently in school, digital currency is an easier way to invest their money.


The Good, The Bad, The Ugly


Though the last 10 days have been particularly harrowing for cryptocurrency investors, the overall market has grown significantly since Bitcoin first entered the mainstream around 2014. Within a few years, hundreds of coins have become lucrative investments, some of which becoming millionaire-makers like Bitcoin, Ethereum, and Dogecoin. Since January, Dogecoin’s price has risen over 2,000 percent, yielding huge returns for quick investors.


For now, the dip is real, however, young investors are confident that it won’t stay for long. “Buy the dip,” and “HODL” (hold on for dear life) have been trending on Twitter since things started going downhill, many millennials taking their coin confidence to social media. Other phrases have been around a bit longer, such as “To the moon,” a sentiment shared by Tesla founder Elon Musk.


Dogecoin literally soared to the moon in anticipation of Musk’s Saturday Night Live appearance, but quickly fell after he called the coin “a hustle” during his monologue. As Musk continues to let out bombshells in tweet form, investors (especially those more experienced) have turned their backs on crypto.


Young Investors Have Patience


Despite many investors questioning crypto many 20-something women are staying put. Kimberly Phan, a 28-year-old investor, admitted that “when I started investing in the cryptocurrency space, my initial goal was to achieve financial independence” and that it “meant putting enough money into crypto and cashing out to reinvest in other stocks.”


“With cryptocurrency on the rise, the industry is increasingly opening up to women,” Phan explained. “We could see numbers increase significantly if crypto was made more digestible and mentorship programs on inclusion were more readily available.”


The 28-year-old investor said she “decided to invest in Doge” despite the risk, “since you could still trade and send it instantly to anyone on the internet, without a bank having to facilitate the transaction.” In just a few months, she has earned over 2,000 percent crypto margins on crypto.


Investor Confidence


College Students and Young Investors Love Crypto! Quick trades and the thrill of volatility has attracted younger generations.
College students and young investors love crypto! Quick trades and the thrill of volatility have attracted younger generations. Photo Credit: Shutterstock


It all comes down to confidence in crypto, a sentiment shared by many young investors. Melissa Lewis, an investor who uses Binance to trade coins, explained that “with crypto, you can buy it and forget about it for a couple days and then when I check it, it’s increased.” She continued by saying, “Crypto has had a steady and stable increase, whereas my stocks are constantly going up and down.” 


The long game is attractive to 20-somethings. “With millennial investors compared to the older generation, time is on our side and we can afford to hold these investments for 20, 30, 40 years in certain cases and see what happens, where older generations don’t have the luxury of time,” Simon Peters, an eToro crypto market analyst explained. 


However, Peters also mentioned that crypto’s volatility plays a role in its attraction, as young traders like the thrill of its ups and downs that can bring quick cash or large losses. It’s the fun of the game. Most importantly, though, Peters believes that “many of the younger generation has a great deal of skepticism towards banking institutions, and investing in and choosing to use alternative forms of currency is one way to vocalize this view.”