Cryptocurrency more enticing than gold and silver for Aussie share traders

Hand holding bitcoin.
Photo by Executium on Unsplash.

This month, the number of Australians investing in cryptocurrencies such as Bitcoin surpassed the number investing in precious metals, such as gold and silver. That's according to digital asset, share trading platform BTC Markets.

BTC Markets' research shows that a third of these cryptocurrency investors made their move in March 2020 after the Covid lockdowns hit. However, what Australians are investing in hasn't been the only thing to change.

ASX's Australian Investor Study shows that the number of new investors rose by 10% in 2020. Around 45% of those who started investing in the previous 12 months were women. That's a significant increase on 31% - the percentage of women who started investing in the past five to ten years.

"At BTC Markets, we saw a 40% increase in client onboarding from the first to second half of 2020," said chief executive, Caroline Bowler.

Aussies of all ages are trading

Bowler added that in the past 12 months there has been a shift from mainly 25 to 45-year-old males to a much broader age group.

"Popularity and interest among the 60-plus has doubled over the last couple of years," said Bowler. Bowler added that this age group now makes up nearly 10% of BTC Markets' client base.

On top of this, it would seem that younger Aussies are jumping on board the investor train, too. ASX's report shows that 25% of new investors aged 18 to 24 only started investing in the past 12 months. Plus, 27% of those intending to start investing in the next 12 months were also under 25.

These younger investors are also doing things a little differently. According to ASX:

  • around 34% invested all their spare cash in the three months to May 2020.
  • nearly 20% take into consideration ethical factors when choosing what to invest in.
  • around 41% said they prefer to receive investor education from YouTube.
  • a further 34% take advice from friends and family.
  • and, nearly 20% rely on social media for share trading tips and tricks.

Tips for new share traders

For anyone new to share trading (or share trading in digital currencies), BTC Markets has some tips:

  • Do your research. Before diving in be sure to swat up on share trading and cryptocurrencies. In fact, you could start by reading our article: What is Bitcoin and why are people buying it now?
  • Start small. BTC Markets suggests starting with small trades, while you get used to whatever share trading platform you're using.
  • Be prepared to settle. According to BTC Markets, cryptocurrency trading requires instant settlement, so make sure your finances are in order before you make a trade.
  • Go offline. Take your cryptocurrency offline, but be sure to remember your password.

For more information on share trading in general, check out our guide: How to start share trading for absolute beginners. Or if you're ready to get the ball rolling, have a look at the share trading accounts on offer below.

Compare share trading accounts - rates updated daily

Search promoted share trading below. Advertiser disclosure.
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