Discovering financial literacy: Crypto leads retail investment charge
April 25, 2021. Summarized by summa-bot.
Compression ratio: 16.7%. 1 min read.
Momentum trading driven by retail investors seems to have taken on a new life since the onset of the global standstill occasioned by the ongoing coronavirus pandemic. Where celebrity challenges used to dominate viral trends on social media, issues relating to personal finance and investments seem to be as popular these days.
According to a survey published by U. S. investment giant Charles Schwab, 15% of the current retail investors in America began investing in 2020.
“We’ve seen tremendous growth and engagement among individual investors over the past year as a result of lower trading costs, new products and services aimed at greater ease and accessibility, and the investing opportunities presented by market volatility. ”
In a conversation with Cointelegraph, Jay Hao, CEO of crypto exchange giant OKEx, identified the COVID-19 pandemic as a significant trigger for the current retail investment surge, adding:
Such is the growth in retail cryptocurrency trading activity that Robinhood has reported that 9. 5 million customers traded crypto on its platform in Q1 2021 alone.
Other investment and payment services have also begun onboarding crypto clients to take advantage of the current retail trading hype.
Outside the U. S. , a resurgence in retail crypto trading has significantly impacted South Korea’s financial markets.
Apart from volatility and other well-worn anti-crypto rhetoric, issuers of these cryptocurrency crash portents often point to the presumed ignorance of retail investors about the intricacies of the investment market.
Commenting on the investment mindset of newbie investors, Andrew D’Anna, senior vice-president at the company’s retail client experience division, stated: “Now that they’ve dipped their toes into investing, Gen I is eager to keep learning and evolving its strategies to successfully build wealth for the long-term. ”