Original Title: State of Crypto Q4 2025: Younger investors are rewriting the investing playbook

Original Source: Coinbase

Original Translation: Chopper, Foresight News

For decades, the wealth accumulation path for Americans has remained almost unchanged: find a good job, buy real estate, invest in stocks, and then patiently wait for the power of compounding over time. However, our latest "Cryptocurrency Industry Report" shows that the younger generation of investors no longer believes in this traditional path and is adjusting their investment behavior.

To understand the market strategies of different generational groups and the role of cryptocurrency in their portfolios, Coinbase conducted a special study in partnership with Ipsos, interviewing a total of 4,350 US adults, including 2,005 investors with investment accounts. The core findings of the study are as follows: Generation Z and millennial investors, among other young investors, are more inclined than any previous generation to actively manage their investments, more willing to embrace non-traditional assets, and are more likely to view cryptocurrency as a core part of their financial future.

A Generation Excluded from the Traditional Wealth Ladder

Youthful investors are far more optimistic about the economy than older generations, but they believe that the existing financial system is not designed for them. Research data shows that nearly seventy percent (73%) of young people believe that their generation faces greater difficulty in accumulating wealth through traditional means compared to their parents' generation, while only 57% of the older generation share the same view.

They have witnessed housing costs skyrocket, student debt pile up, and wage growth stagnate. In this context, an increasing number of young people are seeking alternative wealth accumulation methods beyond the traditional model of "home equity + stock portfolio."

Non-Traditional Asset Allocation Ratio Triples that of Older Generations

This anxiety is directly reflected in their asset allocation strategy. The research shows that young investors allocate 25% of their portfolio to non-traditional asset categories such as cryptocurrency, financial derivatives, non-fungible tokens (NFTs), and other emerging products. This ratio is three times that of older investors, whose allocation to non-traditional assets is only 8%.

The stock holding ratios of different generational cohorts are roughly similar, with the core difference being that young investors have diversified their portfolios beyond stocks. They are more actively seeking income opportunities beyond traditional stock dividends and, in order to narrow the wealth gap, are more willing to explore various new investment tools and emerging markets.

Cryptocurrency is by no means a side investment, but a core allocation

This shift in generational investment philosophy is most evident in the level of acceptance of cryptocurrency. The report shows that 45% of young investors already hold cryptocurrency, compared to only 18% among older investors. Furthermore, nearly half (47%) of young investors hope to be the first to access new types of crypto assets before the mainstream market; in contrast, only 16% of older investors have this aspiration.

In the eyes of the younger generation, cryptocurrency is not simply for speculative trading but is seen as an important avenue to help them catch up in wealth accumulation. Eight out of ten young people believe that cryptocurrency provides their generation with more financial opportunities outside the traditional financial system; at the same time, another eight out of ten young people firmly believe that the role of cryptocurrency in the future financial system will be greatly enhanced. In comparison, the proportion of older investors who agree with this view is only about sixty percent.

The younger generation's enthusiasm for exploring emerging markets is not limited to spot cryptocurrencies; they also aspire to engage with more non-traditional assets. Data shows that eight out of ten young investors are willing to be early adopters of new investment opportunities, a percentage that is still less than half among the older generation holding the same attitude. Young investors are always keenly interested in emerging non-traditional products such as cryptocurrency derivatives, prediction markets, 24/7 stock trading, early token sales, altcoins, decentralized finance lending, and more.

The impact of this trend on future markets

The young investor cohort has shown distinct traits: they trade more frequently, are willing to take on greater risks for higher returns, and are shifting a considerable portion of their portfolios towards non-traditional assets with cryptocurrency at the core. At the same time, they are driving the entire financial industry towards a transformation that better aligns with the needs of the internet-native generation, creating platforms that operate around the clock and support multi-asset trading.

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