A recently released study from the digital asset exchange, MEXC, indicates a strong trend: younger crypto investors, particularly those in Generation Z, are increasingly using artificial intelligence (AI) as a key component of their trading strategies.
The study underscores how automated, AI-powered systems are changing how young people invest in cryptocurrencies, offering both enhanced efficiency and a buffer against emotional responses within the volatile crypto market.
Gen Z: Trailblazers in AI-Assisted Crypto Trading
MEXC’s analysis, drawing from data collected from over 780,000 users between the ages of 18 and 27, demonstrates that a significant 67% of Gen Z traders had implemented at least one AI-driven trading bot during the second quarter of 2025.
This figure significantly surpasses the AI adoption rates of older demographics. Gen Z individuals actively utilize AI tools for an average of 11.4 days each month – more than double the frequency observed among traders aged 30 and above. These Gen Z users account for 60% of all AI bot activations on the exchange, highlighting their pivotal role in embracing AI for their trading endeavors. Source: MEXC
The study also points out that Gen Z’s utilization of AI is selective, with a tendency to increase bot activity during times of amplified market instability. Around 73% of Gen Z traders activated AI bots when market turbulence was high, opting to disable them during calmer trading periods.
AI for Emotional Regulation and Risk Mitigation
Beyond simply automating processes, the data reveals AI’s significant contribution to managing the emotional elements of trading. Bots help reduce impulsive actions, with panic selling incidents declining by 47% among AI users when compared to those trading manually during periods of market stress.
Gen Z traders are setting well-defined parameters for automated trades, including stop-loss and take-profit orders, fostering a more disciplined and risk-conscious approach to trading.
This preference for delegation aligns with the broader Gen Z trend of embracing AI assistance. A Resume.org study conducted in May 2025 revealed that over half of Gen Z employees see AI tools, such as ChatGPT, as collaborators or partners in their daily routines.
Within crypto trading, AI functions as an effective safeguard against emotionally driven decision-making, which can often lead to poor investment choices.
Gen Z vs. Millennials: Contrasting Investment Styles
A comparison of Gen Z and Millennial crypto trading habits showcases different strategies. While Millennials tend to rely on in-depth chart analysis and established technical indicators, Gen Z prefers interactive and adaptable AI tools that suit their fast-paced, social media-driven lifestyles.
Related: eToro Survey: 55% of Gen Z Discuss Investments with Friends, Surpasses Boomers
Gen Z traders demonstrate a 2.4 times greater likelihood of using AI-generated trading signals compared to traditional technical indicators, illustrating a significant generational shift in investment approaches.
AI: The Future of Crypto Trading
MEXC projects that AI will become a core element of trading platforms in the near future. By 2028, it’s expected that over 80% of Gen Z traders will depend on AI for comprehensive portfolio management capabilities, including asset rebalancing, yield optimization, tax automation, and tailored risk management tools. The global AI trading platform market is anticipated to grow at an annual rate exceeding 20%, reaching a market size of nearly $70 billion by 2034.
However, the report also cautions against the potential dangers of over-relying on AI-based systems. Limitations in data accuracy, potential algorithm biases, and a lack of transparency in how AI algorithms function could compromise trust and overall effectiveness.