{"id":16036,"date":"2022-12-31T03:12:25","date_gmt":"2022-12-31T03:12:25","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/new-research-indicates-boomers-make-better-crypto-investors\/"},"modified":"2022-12-31T03:12:27","modified_gmt":"2022-12-31T03:12:27","slug":"new-research-indicates-boomers-make-better-crypto-investors","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/new-research-indicates-boomers-make-better-crypto-investors\/","title":{"rendered":"New research indicates boomers make better crypto investors"},"content":{"rendered":"
As a millennial, it\u2019s hard to say this, but boomers are doing crypto better. They are taking research methods used in the traditional markets and applying them to crypto projects, according to a new report from Bybit and consumer research company Toluna.<\/p>\n
The report says that 34% of boomers spend \u201ca few days\u201d doing due diligence on a project before investing \u2014 50% more than other generations. More concerning still, \u201c64% of North American investors spend less than two hours or don\u2019t DYOR at all.\u201d <\/p>\n
Boomers are also more likely to focus their research on technical factors such as tokenomics, revenue and competitor landscape. Compare this with their younger compatriots, who are more likely to prize reputational elements such as a charismatic founder and \u201cwebsite aesthetics.\u201d <\/p>\n
This shows that being a digital and crypto native is not as big an advantage as people think. It actually pales in comparison with some of the Warren Buffet-style skills that older investors have honed over the years.<\/p>\n
Related:<\/em><\/strong> <\/em><\/strong>5 tips for investing during a global recession<\/em><\/strong><\/p>\n Maybe boomers are more likely to be retired and therefore have more free time than younger generations. It\u2019s hard to say, but it seems the best way forward for young people is to get humble and learn from the oldies. <\/p>\n Even though crypto has many idiosyncratic properties that differentiate it from other capital markets, it still has enough in common to allow for a decent crossover in analytic skills. After all, the price of digital assets is highly dependent on the balance of market supply and demand, just like traditional markets.<\/p>\n Digging into the technicals can prevent the kind of poor decision-making that led to large losses in 2022. Several times I have felt really good about buying a token based on the project\u2019s white paper and the strong narrative pushing it but found, on further research, that there were so many venture capital unlocks incoming that the selling pressure would weigh on prices for years to come. <\/p>\n Boomers who are used to crunching company numbers and calculating price-to-earnings and price\/earnings-to-growth ratios can apply these skills to data from CoinGecko or CoinMarketCap. Younger generations need to learn why \u201ccirculating supply\u201d versus \u201cmax supply\u201d is important and why volume is critical.<\/p>\n