Crypto crash remains top risk for young investors

According to research conducted on behalf of Saxo Markets UK, 56% of investors aged 18 to 34 years old plan to increase their investment in the digital asset industry.

Saxo Markets UK is the licensed subsidiary of Saxo Bank, a fintech firm focused on multi-asset trading and investment.

The research, gathered on behalf of the company, not only suggest an uptick of investment from a majority of young investors but shows they are wary of the risks of the digital market.

The biggest concern for young investors is the volatility of the market which could in turn cause a cryptocurrency crash.

Regulation in the global market has been a constant issue as 59% of young investors said they would increase their investment allocation to cryptocurrencies if the industry were to be properly regulated.

Learning how to invest

The influence of social media doesn’t stop at learning how and where to invest as the likes of Reddit, Twitter and Facebook were seen as the most important media platforms for investing in 2022.

Just over one in ten investors (12%) suggested it was Instagram, despite the increasing use of influencers to lure retail traders.

Charles White-Thomson, CEO of Saxo Markets UK, said critical learning of the market alongside the diversification of your portfolio is what will put young investors on the right path.

“Many such investors have, however, not witnessed a market crash or a major financial crisis,” he said.

“It is critical that alongside their increased investment activity, they not only seek credible sources of investment information but also look to diversify their holdings to ensure that any recent gains are protected rather than wiped off.”