Important Facts
- Around 50% of Gen Z individuals involved in investing are actively trading digital currencies.
- Digital currencies are known for wild price swings and lack governmental oversight.
- Research indicates that many Gen Z investors are consciously accepting the potential downsides.
Gen Z’s Approach to Finance
Born between 1997 and 2012, Generation Z has grown up immersed in the digital world. This familiarity could explain why approximately 48% of Gen Z investors are using platforms dedicated to buying and selling crypto assets – a larger proportion compared to any other generation, according to YouGov’s US Investment Trends Report in 2025. Data shows, in contrast, only 40% are using traditional financial institutions, such as banks, and about 32% get financial advice from a professional.
Despite the oldest among them being only 28 years old, they have already experienced significant financial downturns. They navigated through economic challenges, namely the COVID-19 financial crisis in 2020, in addition to the 2008 financial crisis, also known as the Great Recession.
A substantial percentage, almost 50%, turn to online sources for financial information and education. A 2023 report by the Financial Industry Regulatory Authority (FINRA) and the CFA Institute found that 48% rely heavily on insights shared across different social media platforms.
Understanding Crypto Investments
The trading of digital currencies takes place on a blockchain, which is a transparent, permanent digital ledger that records all transactions. Crypto exchanges allow users to exchange traditional money for cryptocurrencies.
According to Steven Rogé, a certified financial planner (CFP), chief investment officer, and CEO of R.W. Rogé & Company Inc., “Buying digital currencies on a dedicated exchange platform and moving them into a personal digital wallet can be achieved responsibly; however, this would require a novice to manage their assets in a way that would be similar to a traditional banking experience.” He also stated, “That includes overseeing key aspects such as security protocols, and an understanding of potential irreversible errors.”
There exist alternative means of participating in the crypto market. One such option is to invest in companies that are part of the industry.
Certain trading platforms offer access to cryptocurrency-related exchange-traded funds (ETFs) and exchange-traded products (ETPs). Investors should note that ownership is not directly held when investing via these instruments.
Investing in crypto carries inherent risks. Findings by YouGov show that the overwhelming majority of American investors (83%) regard cryptocurrency as a risky asset class. It is highly susceptible to market instability, manipulation, potential scams, and does not have the same regulatory safeguards that more traditional assets may have.
Gen Z’s Calculated Crypto Risk
Gen Z has lived through two significant economic recessions, which may be a reason for their financial prudence. In YouGov’s study, an estimated 84% have stated that investing in cryptocurrencies carries a higher amount of risk. In separate findings from the Financial Industry Regulatory Authority (FINRA), 55% of the surveyed Gen Z investors have holdings in digital currencies, versus 41% who hold stocks.
Rogé suggests that “Digital currencies align with a generation that grew up comfortable with digital wallets, gaming economies, and digital communities. They also tend to be more distrusting of established institutions after seeing significant economic hardship and inflation. Social media amplifies this appeal.”
Why the Risk Tolerance?
The YouGov analysis showed that a great portion of Gen Z feel empowered to independently manage their investments, at 70% compared to 60% for total investors. FINRA reported that nearly half of Gen Z investors expressed a willingness to take above-average financial risks.
Final Thoughts
Generation Z and digital currencies are deeply linked to the digital era. Because crypto related fraud is relatively common, even those with investment confidence should consider a well-rounded portfolio of assets for optimum security.
Rogé suggests, “Think of digital currency like you think of dessert. Prioritize saving and index funds first, and keep the serving size small.”