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Is Gen Z at risk of being “overinvested” in unregulated markets?

Investment Shifts

We are entering an era where Gen Z are at risk of being over invested in unregulated markets. There has been a generational shift in what is considered a typical investment, moving from; stocks, index funds, property, ISAs, and traditional bank savings, to using AI and digital platforms to invest in cryptocurrency.

Cryptocurrency has been around since the 1990s but in the last ten years, it has blown up and become mainstream. Investing in crypto has dramatically increased in popularity and is thought of as a new and exciting space and considered to be the future.

A cult-like approach has developed when people discuss investment opportunities within the blockchain space. Let’s take NFT’s for example, which only gained popularity in 2017 with the launch of CryptoKitties, allowing individuals to profit from selling tradable cats. Then, in 2020, the market tripled to $250m and by 2021, the market achieved $250m in a quarter.

Gen z Investment

What is the attraction?

People are attracted to investment opportunities for various reasons; popularity, following the crowd, exclusivity, and having access to a community they would otherwise never get to be part of. Let’s be honest, having ownership over something digital does sound cool, trendy, and appealing, especially in a generation that is so technology-led.

Suppose you have a look at Bored Ape Yacht Club (BAYC). Your “average” individual can gain access to the same perks, exclusive events, items etc. as a celebrity. You can also interact with these celebrities in the metaverse, whether that’s buying a property next to Snoop Dog or attending a party with Taylor Swift.

The same could also be said for crypto investing. Gen Zs are more fearless than their predecessors and make increasingly bold and risky decisions with their money. With cryptocurrency, there is an opportunity to earn substantial amounts of money and having your life turned around overnight is deemed to be worth the risk. Some people see it as a shortcut or a “get rich quick scheme”, so naturally tend to skip steps, not do enough research and risk losing as much as their life savings on what is essentially a gamble.

We work with many legitimate crypto companies but there is a fair share of scam companies out there. Make sure you do your research before investing.

There is a significant increase in the cost of living, and consumer prices, as measured by the Consumer Prices Index (CPI), are 10.1% higher in July 2022 than a year before. More money is being printed, reducing the value of certain currencies like the dollar and the euro. However, there is a market cap on all coins in the crypto space. We market cap to not only measure price but to also complete a story and compare value across cryptocurrencies.

What are the risks?

That being said, there are other risks associated with investing. Without in-depth research into the crypto market, it can be difficult to know which companies to trust, what to believe, and who is influential in this space for the right reasons. This space is community-led, people tend to follow those who are passionate, knowledgeable and predict trends which, without the right research and safety precautions, can leave individuals vulnerable to hackers, misguided information, scams, and digital theft.

As crypto usage increases, so too do cryptocurrency regulations around the world that are put in place to govern them. Familiarise yourself with the regulations as this is a good way to legitimise your investment. 

From an investment standpoint (not financial advice), I would personally look to spread investments across both cryptocurrency and traditional investment means. Traditional investment methods can help to develop your understanding of investment strategies.  

Given how volatile crypto markets are, I would look to be more conservative with how my investment portfolio is spread. Only put in what you can afford to lose. Do not let your financial status be affected by dramatic changes in the market condition.

Create a spreadsheet and analyse your monthly outgoings, this helps keep track of what you can afford to invest without the spending impacting your standard of living. Research your investment opportunities in-depth, this helps uncover the most.

Traditional means like ISAs, storing money in the bank, index funds, and stocks are all forms of low-risk investments. Depending on your financial situation, I would put in a small amount each month as a direct debit into various coins as this will give you more compound interest.

As this space continues to grow, more security, regulations and colour will be provided which in turn will help people gain more confidence investing in this space without seeing it as a gamble.

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*Disclaimer: We are not financial advisors. Do not take anything from this article as financial advice. Consult a professional investment advisor before making any investment decisions.


The increasing popularity of cryptocurrency and NFT investments among Gen Z reflects a notable divergence from more traditional investment avenues like stocks, index funds, and property. While older generations have typically favoured these traditional assets for their stability and long-term growth potential, Gen Z is drawn to cryptocurrency and NFT markets’ dynamic and tech-savvy nature. This demographic’s affinity for digital assets stems from factors such as perceived exclusivity, the allure of technology-driven investments, and the potential for rapid wealth accumulation within a shorter timeframe compared to traditional investments.

Firstly, conducting thorough research and due diligence on any cryptocurrency or NFT project before investing is crucial. This includes evaluating the project’s whitepaper, team members, technological innovation, and community engagement to assess its legitimacy and potential for long-term viability. Additionally, staying informed about market trends and news, particularly regarding regulatory developments and security best practices, can help investors identify and avoid scams or fraudulent schemes. Implementing robust security measures, such as using reputable cryptocurrency exchanges, employing hardware wallets for asset storage, and practising good cybersecurity hygiene, can also mitigate the risk of digital theft and unauthorised access to funds.

Gen Z investors can strike a balance between embracing the potential opportunities presented by cryptocurrency investments and maintaining a diversified portfolio by adopting a strategic and disciplined approach to asset allocation. While cryptocurrency offers high-risk, high-reward potential, it should be viewed as one component of a broader investment strategy. Allocating a portion of their investment capital to cryptocurrency while reserving a significant portion for more traditional, lower-risk assets like ISAs, index funds, and stocks can help mitigate overall portfolio volatility and preserve capital. Additionally, regularly reviewing and rebalancing their investment portfolio to ensure alignment with their financial goals, risk tolerance, and market conditions is essential for long-term wealth accumulation and economic stability.

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