Is Gen Z Investing Only in Crypto a Smart Decision or Not? Here’s What Analysts Say!

Jakarta, Pintu News – A joint report from FINRA and CFA Institute shows that around 19% of Generation Z investors only invest in cryptocurrencies. This phenomenon reflects a major shift in the investment attitudes of the younger generation who tend to shun traditional investment portfolios such as stocks and bonds. The popularity of cryptocurrencies among them raises a big question: is this a brilliant move or a mistake?

Why is crypto so popular?

The popularity of cryptocurrencies among Generation Z is inseparable from their tendency to seek unconventional investment alternatives. According to a study by Bank of America, 94% of young investors are more interested in collectibles than the traditional 60/40 stock/bond portfolio. They tend to see cryptocurrencies as an opportunity for potential long-term investments.

The ease of access and blockchain technology on which cryptocurrencies are based also appeal to them. Generation Z, who are familiar with technology, find cryptocurrencies to be an investment vehicle that suits their digital lifestyle. This makes cryptocurrency a seemingly relevant and futuristic option.

Also Read: 3 Bitcoin Scenarios of 2026: Failure to Survive at $100K Could Trigger a Major Crash

Potential Profits from Crypto Investments

Looking at historical data, Bitcoin (BTC), for example, has shown significant growth in recent years. In 2023, Bitcoin (BTC) recorded an increase of 155.42%, and in 2024, the figure reached 121.05%. These figures show the tremendous profit potential of crypto investments.

However, it’s also worth noting that cryptocurrencies have very high price fluctuations. In 2022, for example, Bitcoin (BTC) experienced a 64.27% drop. This shows that while the potential gains are great, the risk of loss is equally high. Investors should consider this before deciding to invest fully in crypto.

Key Risks of Crypto Investment

Investments focused solely on cryptocurrencies present risks that cannot be ignored. Lack of diversification is a major issue; if all capital is invested in one type of asset, the risk of loss is very high. In addition, cryptocurrencies are highly volatile, which can lead to large losses in a short period of time.

Cryptocurrencies also operate in a less regulated area, raising concerns about the safety of investments. The absence of intrinsic value and lack of transparency in reporting are also important considerations for investors to think about. These factors should be seriously considered by investors considering investing heavily in crypto.

Conclusion

Although cryptocurrencies like Bitcoin (BTC) have shown impressive performance, investing solely in crypto carries significant risks. Investors should exercise caution and consider diversifying their investments to reduce risk. The decision to invest solely in crypto should be carefully considered, taking into account both the potential gains and the risks involved.

Also Read: 3 Reasons 2026 Is No Longer About Cycles, This Is What Actually Drives Crypto Prices

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Yahoo Finance. Almost 20% of Gen Z investors are trading cryptocurrencies, according to a new survey. Accessed on January 22, 2026