{"id":19379,"date":"2023-06-20T05:53:00","date_gmt":"2023-06-20T05:53:00","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/31-of-young-aussies-hold-crypto-despite-being-risk-averse-asx-survey\/"},"modified":"2023-06-20T05:53:03","modified_gmt":"2023-06-20T05:53:03","slug":"31-of-young-aussies-hold-crypto-despite-being-risk-averse-asx-survey","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/31-of-young-aussies-hold-crypto-despite-being-risk-averse-asx-survey\/","title":{"rendered":"31% of young Aussies hold crypto despite being \u2018risk averse\u2019 \u2014 ASX survey"},"content":{"rendered":"
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Despite seeing themselves as more \u201crisk averse\u201d than their older counterparts, nearly a third of all young Australian investors hold or have traded cryptocurrencies over the last year, a new study has found.<\/p>\n

In an Australian investor study from the Australian Securities Exchange (ASX), 46% of \u201cnext generation investors\u201d \u2014 the report\u2019s terminology for investors aged 18 to 24 \u2014 described themselves as preferring \u201cstable returns\u201d \u2014 yet 31% of them invested substantially in crypto.<\/p>\n

Attitude towards investment risk by age group. Source: ASX.<\/em><\/figcaption><\/figure>\n

\u201cThe apparent financial conservatism of younger investors is at odds with their level of investment in cryptocurrency,\u201d the report wrote. <\/p>\n

Researchers said the reason that younger people invested in crypto boiled down to a desire to do things differently from their parents combined with the observation that \u201cmany of the 1.2 million new investors who’ve taken up investing since 2020 are tech-savvy and connected to social media.\u201d<\/p>\n

According to ASX\u2019s study, which was undertaken by financial research firm Investment Trends, the median holding of cryptocurrency for \u201cnext generation\u201d investors stands at $2,700, representing a 6% weight in their total portfolio, double that of the 3% crypto allocation for all other investor age groups. <\/p>\n

However, while young investors owned the most crypto relative to their portfolios, it was the \u201cwealth accumulators\u201d \u2014 investors aged 25 to 49 \u2014 who owned the most cryptocurrency overall, accounting for 69% of the total investment in digital assets. Investors aged 50+ accounted for just 19% of overall crypto ownership. <\/p>\n

Overall crypto investment snapshot for Australian investors. Source: ASX.<\/em><\/figcaption><\/figure>\n

This report marked the first time that cryptocurrency had been included as an asset class in the ASX\u2019s Australian Investor Study. As such, the report approached the subject with a degree of caution, saying it\u2019s still up for debate whether cryptocurrencies can become \u201cfully accepted in mainstream investing.\u201d<\/p>\n

Still, the study admitted that despite its volatility, cryptocurrency remains a popular choice among investors, revealing that 29% of all \u201cintending investors\u201d \u2014 people who don\u2019t currently invest in any capacity \u2014 are considering some type of crypto investment within the next 12 months. <\/p>\n

Related: <\/em><\/strong>Australia’s crypto laws risk being outpaced by emerging markets: Think tank<\/em><\/strong><\/p>\n

Notably, centralized crypto exchanges were singled out as a potential \u201chandbrake\u201d for the growth of crypto investment in the future. <\/p>\n

The United States Securities and Exchange Commission\u2019s recent spate of legal action against exchange giants Coinbase and Binance in the United States stands as a clear example of challenges facing centralized exchanges.<\/p>\n

Australia’s crypto exchanges have also faced challenges in recent months. In May,\u00a0Binance Australia announced it is suspending\u00a0all Australian Dollar-denominated services in June after its local payments provider was ordered to halt support for the exchange. On the same day, Australia’s second-largest bank Westpac banned customers from transacting with the exchange. <\/p>\n

The following month, Commonwealth Bank \u2014 Australia’s largest bank \u2014 said it may decline certain payments to crypto exchanges citing a “high risk” of scams.\u00a0<\/p>\n

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The biggest bank in Australia, @CommBank<\/a> has just taken a giant step backward. They are blocking crypto transactions “for our safety”. pic.twitter.com\/4tsddbNPg8<\/a><\/p>\n

\u2014 Charles Edwards (@caprioleio) June 15, 2023<\/a><\/p><\/blockquote>\n

The research for the ASX\u2019s report was conducted in November 2022, and based its findings on an in-depth online survey of a sample of 5,519 Australian adults. <\/p>\n

Magazine: <\/em><\/strong>Cryptocurrency trading addiction \u2014 What to look out for and how it is treated<\/em><\/strong><\/p>\n<\/div>\n