Bitpanda Research: Who are Germany’s crypto investors?

While just 11% of Germans currently invest in crypto, that number is on the rise, especially among younger investors.

Millennials are turning to crypto, Gen Z is following suit

In every market we surveyed we found that crypto adoption is highest among younger investors, and Germany is no exception. 22% of millennials (aged 28-43) have already invested in cryptocurrencies, double the national average, while the figure for Generation Z (18-27 years) is 12%. The results also indicate that the number of young crypto buyers will continue to rise in the future. 

Optimism for the future of the crypto market

Where is this optimism coming from? Our data shows that one in three German millennials (33%) plan to invest in cryptocurrencies in the next 12 months. Interest is also high among Generation Z (18-27 years old): almost one in five (18%) plan to enter the crypto market in the coming months.

This optimism is also reflected in their expectations regarding the price of Bitcoin. Regardless of whether they have already invested or not, 45% of millennials and 39% of Gen Z are firmly convinced that Bitcoin will increase in value over the next 12 months. 

The survey also shows that the younger generations invest their assets much differently than Generation X and Baby Boomers. Only 9% of Generation X have invested in cryptocurrencies to date, while just 3% of Baby Boomers have done so. In general, the willingness to invest in new asset classes is much more pronounced among the younger generations. Around half of baby boomers and Generation X also stated that they would not invest in asset classes such as ETFs, individual shares, cryptocurrencies, precious metals and commodities in the future.

Eric Demuth, Co-founder and CEO of Bitpanda comments:  "The study shows a profound evolution in investment behaviour. Younger generations are handling their assets differently than Generation X and the boomers. They are much more open to new asset classes such as cryptocurrencies than the generations before them. The figures underline the growing optimism and increased confidence in the future of digital assets. Our strong growth in user numbers over the last few quarters is impressive proof of this."

Factors driving adoption

While high potential returns are still the main driver for German crypto investors, young people increasingly value the long-term investment potential of digital assets. 

23% of Gen Z now view cryptocurrencies as a long-term investment opportunity, making it the second most important factor behind their selection of asset classes to invest in. Young investors thus show a strong trust in cryptocurrencies that goes beyond short-term return expectations. Independence from traditional financial institutions as well as anonymity and privacy in transactions were also cited in the study as further important investment motives.

Trust remains a key factor

The trust of Generation Z and Millennials in the crypto industry still has to be earnt, and there are some major steps factors that could help deliver that trust. In the survey, young people highlighted that they would like to see better security measures against hacker attacks and theft (17%), transparent information and education about cryptocurrencies (17%) and legal regulations and government regulation (17%). These measures could significantly increase the trust of Generation Z and millennials in cryptocurrencies in the future.

Download Survey Results

Disclaimer

This article is distributed for informational purposes, and it is not to be construed as an offer or recommendation. It does not constitute and cannot replace investment advice. Bitpanda does not make any representations or warranties as to the accuracy and completeness of any information contained herein. Investing carries risks. You could lose all the money you invest.