Bitcoin, crypto and the female investors who like it

Investing in cryptocurrencies like Bitcoin seems to be the in-thing at the moment and apparently young female investors are pilling in.

According to a survey by digital asset exchange BTC Markets there’s been a 172% increase in growth among female investors compared to 79% growth in male investors.

To put that into perspective, of the 1800 people surveyed, women accounted for 23% of total investors compared to 77% men. And those aged 18 to 44 years accounted for nearly 80% of investors.

The most popular types of crypto currencies traded by Australian investors are Bitcoin (BTC), Ripple (XRP, Ethereum (ETH), Litecoin (LTC) and Stellar (XLM).

You can trade cryptocurrencies through some online cryptocurrency exchanges but for your own protection, you should check that they hold an Australian Financial Services License (AFSL). Or another way to do it, is to buy what’s known as Contracts For Difference (CFDs) on them via a regulated CFD provider.

In the 12 months to June 30, female investors traded twice daily on average, compared to five times for males suggesting a structured trading strategy with a smaller range of more focused positions.

Female investors also deposited larger amounts at the outset ($2381), compared to their male peers ($2060).

Caroline Bowler, CEO of BTC Markets says the fact that “more women are trading cryptocurrency dispels misconceptions around cryptocurrency investors being risk lovers.”

This is because behavioral finance studies have found women to be more risk averse in their investment decisions than men.

Cryptocurrency has come a long way since the elusive Satoshi Nakamoto created the first Bitcoin in 2008. The total value of cryptocurrency in circulation globally is now estimated to be worth more than $US2 trillion.

“It also shows a calculated appetite for the volatility that is still a feature of this asset class,” says Ms Bowler.

The survey found that the number one motivation for Australians investing in crypto was to build wealth (70%), followed by a third (34%) looking to retire early and for portfolio diversification (28%).

Just one in five confirmed their biggest driver was their fear of missing out on this emerging asset class, while a smaller proportion also rely on cryptocurrency for short or medium-term goals such as paying down debt (12%), holidays (6%) or use their investment to start a business (4%).

According to Ms Bowler this result indicates a longer-term investment timeline whereby Australians are looking to cryptocurrency to build and provide for their future, rather than using it as a ‘get quick rich’ investment.

“It’s worth noting that cryptocurrency investments are being used for overall portfolio  diversification. This is a role traditionally held by alternative assets such as REITs, hedge funds, art, precious metals such as gold, and other collectibles.

“This indicates that cryptocurrencies are coming of age in playing an increasingly important role as an alternative asset in the portfolio construction process.”

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