Boomers are more likely to do extensive research before investing in cryptocurrency projects, with 34% spending a few days on due diligence, compared to just 24% of other generations. This extra research often focuses on technical factors such as tokenomics, revenue, and the competitive landscape, rather than reputational elements like the charisma of a project's founder or the aesthetics of its website.
Boomers' Analytic Skills Make Them Better Crypto Investors
The research suggests that boomers' success in the cryptocurrency market may be due in part to their analytical skills, honed through years of experience in traditional markets. These skills, such as the ability to calculate price-to-earnings and price/earnings-to-growth ratios, can be applied to data from cryptocurrency tracking websites like CoinGecko or CoinMarketCap. In contrast, younger investors are more likely to base their decisions on superficial factors or insufficient research, with 64% of North American investors spending less than two hours or not doing any research at all before investing.
Younger Investors Can Learn from Boomers' Success in Crypto
Despite the distinctive nature of the cryptocurrency market, there are still many similarities with traditional capital markets that investors of all ages can leverage. For example, the price of digital assets is still largely determined by supply and demand dynamics. However, the research suggests that younger investors can benefit from learning from the experience of boomers, who have successfully applied their analytical skills to the cryptocurrency market. This may involve learning more about technical factors such as circulating and max supply and the importance of volume in the market.