Baby Boomers are becoming the fastest-growing group of cryptocurrency investors, although experts caution them to be vigilant about potential scams in the crypto space. Sydel Sierra, founder of Digital Wealth Group, emphasises the importance of thorough research before diving into investments, particularly as Baby Boomers are often common targets for scammers.
Statistics reveal that while Baby Boomers might not hold the largest share of cryptocurrency ownership, their numbers have increased significantly. Since 2019, the percentage of seniors (those aged 65 and older) investing in cryptocurrency has expanded from 2% to 8.2%. Many in this age group are re-evaluating their investment strategies following retirement.
Currently, about 31% of Australian adults own cryptocurrency, with the highest concentration (52.9%) found among those aged 25 to 34. Despite Baby Boomers representing a smaller percentage, their growing interest signals a shift in investment dynamics.
Sierra advises seniors to thoroughly investigate their options and, if needed, seek assistance from trusted sources, such as family members or financial professionals. Importantly, a University of Queensland study uncovered that Australians lost over $170 million to cryptocurrency scams in 2023 alone. A substantial number of individuals reported being influenced by online content, with over 60% stating that their initial exposure to cryptocurrency came from social media.
While engaging with online platforms like Facebook or Instagram can be informative, Sierra warns against making hasty investment decisions based on a single tweet or TikTok video. She recommends that new investors, especially those who are older, begin cautiously. Investing modest amounts in established cryptocurrencies like Bitcoin—known for their relative stability and potential for growth—can be a prudent approach until they gain more confidence.
Sierra strongly discourages first-time investors, whether seniors or younger individuals, from engaging in high-risk investments, such as meme coins. She stresses the importance of maintaining control over one’s cryptocurrency holdings and warns against trusting anyone who offers to manage investments on their behalf, as this can often be a sign of a scam.
Overall, as more seniors explore the world of cryptocurrency, it remains crucial for them to educate themselves, exercise caution, and seek reliable guidance. The primary goal should be to protect their finances while navigating this relatively new investment landscape.