The term “cryptocurrency” is not unfamiliar today. In the financial world, the advent of this new instrument shook everything to its core. Prior to the late 2010s, it was virtually unheard of to have a decentralized and unregulated currency. Cryptocurrencies, like everything new, have their supporters and haters. There’s one problem, unlike almost everything else in financial markets, these cryptocurrency experts are overwhelmingly male. However, being a female investor is different from being a male investor. Investing is instinctual for women and they tend to invest more in traditional instruments. Hence, one cannot help but wonder, is this new torch-bearer in finance a viable option for female investors?
Sharekhan (India), a brokerage firm, reported a jump in the number of female traders in the 2020-2021 fiscal year from 14.75 percent to 35.68%. Even though this is a positive sign, it shows that women are only now beginning to consider investing and trading in the stock market. In this article, we are not concerned with the reasons or history for this, but we are interested in the type of instruments that women traditionally invested in.
Gold, Fixed Deposits, Savings Schemes and Savings Certificates are all instruments that have two characteristics in common:
- They have lower returns on investment.
- They are low risk.
These characteristics are interconnected to those who have studied the market for a long time. Does this reflect the nature of women investors? Do women not take risks?
Sadly, the answer is YES. But they have no fault of their own. In developing countries, women often have little access to capital, and when they do, they are socially conditioned to take fewer risks with it. When it comes to investing, women think constantly of a protective net. This hinders their ability to take risks.
How does this nature apply to the world of Cryptocurrency?
There is a great deal of volatility in the crypto market. A lot of investors and miners lose money. To make matters worse, it is unregulated. You will be protected against losing money by neither a bank nor the government. Women investors are frightened by these two combined factors.
In discussions about cryptocurrency among female peers, one frequently hears “I don’t understand crypto enough to put my money there” as an argument. It seems like an easy thing to fix. However, the subtext of the argument implies a deep mistrust of the whole system.
All over the internet, cryptocurrency is widely discussed and debated for its merits and detriments. Almost nothing is left unsaid. Yet, for female investors, the demerits have a much greater impact than the merits.
Coins can be exchanged anonymously and safely using cryptocurrencies. Yet, haven’t terrorist organizations used them? Cryptocurrency investments have indeed made some millionaires. However, isn’t the same phenomenon also responsible for billions in losses for several investors?
In today’s time, more than ever, being financially self-sufficient and independent has become increasingly important for women. It is therefore imperative that we teach women how to invest at an early age. Women can no longer ignore personal finance. Cryptocurrencies are here to stay (so long as governments do not ban them outright). Over the 2020-2021 period, cryptocurrency’s market share increased even in the face of a global pandemic. In other words, women must look at crypto as a viable option for both investment and exchange. Women need the anonymity crypto provides in their purchases and exchanges. Many women’s finances are still controlled and regulated by the male figures in their lives. Investing in crypto provides women with security in their financial investments without compromising their financial autonomy. Cryptocurrency is easier to set up than traditional banking and financial services, has no paperwork, and provides investors with anonymity and security.
Additionally, female investors need education about the best currency to invest in and when, how and how much to invest, just like their male counterparts.
Women set up trading in Bitcoin and other cryptocurrencies
With Coinbase Global Inc.’s recent IPO and bitcoin’s recent record-setting high, women are investing in cryptocurrency more than ever.
The number of women trading crypto has increased in the past year, according to several cryptocurrency exchanges and online brokerages. This number is expected to increase further, in part because investors are becoming more aware of the asset class, and they are looking to invest in hot markets and boost savings. However, those taking advantage of volatile markets to save are at risk of losing months of gains.
“When it comes to cryptocurrency investing, women deserve a seat at the table.” Experts believe.
According to a recent eToro study, women might hold onto their crypto investments for longer than men. According to eToro’s research, women hold more bitcoin and ether on average while men hold more Cardano and Tron. Tron and Cardano aren’t nearly as well known as bitcoin and Ethereum. It might be better for investors to buy and sell coins that aren’t as frequently traded because they are more likely to get large gains soon in a cheaper asset with a smaller market cap.
Generally, women are long-term investors, less impulsive, and hold on to their positions, which explains why they are over-indexed on bitcoin.
Women across the world will benefit from cryptocurrency by safeguarding and protecting their financial interests. When it comes to cryptocurrencies, it is imperative to educate women.
