A study conducted by BaFin, Germany’s financial regulatory authority, reveals a fascinating trend: more than 50% of young investors in the crypto space place their trust in social media platforms and financial influencers, commonly known as “finfluencers,” for investment advice.
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Millennials And Gen Z Actively Look For Finfluencers’ Recommendations
The cryptocurrency market has witnessed a significant influx of young investors.
Visibly, Millennials and Gen Z are particularly enthusiastic about digital assets, as many view it as a way to achieve financial independence and participate in a decentralized financial system.
Reportedly, 57% of young investors bought products through influencer links. Meanwhile, 25% investors purchased crypto without even using the provided links.
According to BaFin’s study, young investors are increasingly turning to social media platforms such as Twitter, Instagram, and TikTok to gather information and insights about crypto investments.
These platforms offer a wealth of content, from market analysis to investment strategies, often delivered by charismatic personalities who have amassed large followings.
We have brought 2 #influencers on board:
Bow Wow
Rick the KidAnd we have more coming up.
We are an influencer-based launchpad that delivers.
Buy your #CFLU & be part of the next-generation #crypto #launchpad#InfluencerMarketing #blockchain pic.twitter.com/bOkiGWOAN6
— Coinfluence (@TheCoinfluence) September 20, 2021
“The impact of finfluencers extends to actual investment actions,” reported Finance Magnates. “The study found that 80 percent of respondents who follow finfluencers also noticed links to investments provided by them. Of those, 57 percent made purchases directly through these links, while an additional 25 percent invested but did not use the provided links.”
However, it was found that 37% investors were unaware that finfluencers are compensated for recommendations. 15% of link users didn’t know about compensation practices.
Gen Z and Millennials are at the forefront of cryptocurrency adoption in Europe, according to a YouGov research commissioned by crypto exchange Bitpanda. The survey analyzed five countries, including Switzerland, Austria, France, Germany, and Italy.
The survey identified Switzerland as the leading nation in digital currency ownership, with 23% of its population owning digital currencies. This is followed by Austria at 18% and France at 14%. Germany and Italy lag behind with 11% and 9%, respectively.
EXPLORE: Gen Z And Millennials Lead Crypto Adoption In Europe
What Is BaFin?
Under one roof, the Federal Financial Supervisory Authority (BaFin) oversees securities trading, insurance companies, banks, and financial service providers. The Federal Ministry of Finance has technical and legal authority over this independent public law entity.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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