Nearly half of crypto copy traders are Gen Z, says Bitget report

August 4, 2023 Coin Telegraph

Bitget

Younger investors are more likely to take part in copy trading or social trading and take advice from social media influencers, according to the crypto exchange.

Generation Z crypto investors are more likely to engage in copy trading or social trading — an investment method that involves mirroring the trades of a selected other — according to a report from crypto exchange Bitget.

In an Aug. 3 report on copy trading by Bitget, the firm revealed that out of all of its copy traders, 44% of them were under 25 years of age. This was followed by 25 to 35-year-olds accounting for just under one-third.

The older generation, 35 to 55-year-olds made up of 17% of copy traders, while those over 55 made only 7% of the total.

*Bitget’s copy trade user figures show Gen Z and millenials make up the bulk of users. Source: Bitget*

Copy trading or social trading has been offered by exchanges in both traditional stocks and crypto. In the crypto space, it is currently offered by exchanges including eToro, Bybit and MEXC, among others.

Users can choose to use an automated tool that essentially copies positions opened and managed by a chosen individual.

Bitget suggested Gen Z's inclination to look to social media influencers for investment decisions could explain their affinity towards copy trading.

A January Forbes Advisor survey said around 80% of Gen Z and millennials took financial advice from social media. Half claimed to have made money from the advice received and YouTube, Reddit and TikTok were the most trusted platforms.

Crypto was found as the most popular investment for Gen Z in a May report from the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation.

44% of United States Gen Z investors started with a crypto investment compared to 35% of millennials. 43% of British and 35% of Canadian Gen Z investors also said crypto was their first investment.

Bitget’s report claimed most of its copy-trading users — nearly a third — were Western European but nearly half hailed from either East or Southeast Asia, its next two largest geographic segments.

*Bitget’s copy traders by region show Latin Americans were the fourth largest group. Source: Bitget*

Despite making up 1% of Bitget’s global copy traders 62% of African users were interested in copy trading — the highest proportion of any region.

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Social Trading Platform Enso Finance Raises $5M in Funding Round

April 13, 2021 The Crypto Briefing

Soon-to-launch social trading platform Enso Finance gets a cash injection.

Enso Finance Closes Funding Round

Enso Finance has closed a $5 million funding round. Polychain and Dfinity Beacon Fund led the investment, while other participants included Multicoin Capital, P2P Capital, Spartan Group, Zola Global, and The LAO.

Enso Finance is a new DeFi tool that allows anyone to create permissionless trading strategies. Enso will give traders access to native social trading strategies, which can be invested in directly or through the creator’s token. These tokens can be used for activities such as yield farming, liquidity mining, arbitrage, and flash swaps. Traders can also invest in strategies through multi-signature syndicates or decentralized autonomous organizations.

Enso Finance is one of many projects that leverages the composability of DeFi. Composability refers to the interoperability of DeFi apps. With DeFi largely running on Ethereum today, the leading apps can be used interchangeably in endless combinations, which is why they’re often described as “money legos.”

Connor Howe, the co-founder of Enso, explained that Enso will make DeFi’s composability more accessible. He said:

“Composability is one of the unique aspects that makes DeFi magical. With Enso, we’re lowering the barrier to capturing composability by gathering all of the major decentralized finance platforms and making it simple to follow the best traders who use these platforms, or create novel strategies between them.”

Spencer Applebaum, an investor at Multicoin Capital, added that Enso’s ease of use is one of its key strengths over other platforms. He said:

“While other platforms focus on either active or curated passive strategies, Enso is fully customizable and enables anyone to become a fund manager with the click of a button.”

Enso will initially launch on Ethereum mainnet, though it has also factored plans for multi-chain support, according to the press release.

Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.

Social Trading