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As millennials, it’s hard to say this, but baby boomers are doing better with crypto. Applies to cryptocurrency projects.
According to the report, 34% of baby boomers spend “few days” on project due diligence before investing. This is 50% more than any other generation. Even more worrying is that “64% of his North American investors spend less than two hours on him or don’t do DYOR at all.”
Baby boomers are also more likely to focus their research on technical factors such as tokennomics, revenue and competitive landscape. Compare this to your younger compatriots, who are more likely to appreciate reputation factors such as charismatic founders and “website aesthetics.”
This shows that being digital and crypto native is not as big of an advantage as people think. It actually pales in comparison to the Warren Buffett-style skills older investors have honed over the years.
Related: 5 tips for investing during a global recession
Baby boomers are more likely to retire, which may be why they have more free time than younger generations. It’s hard to say, but the best way for young people to move forward is to be humble and learn from the older ones.
Cryptocurrencies have many idiosyncrasies that set them apart from other capital markets, but they have enough in common to allow for a good crossover of analytical skills. After all, the price of digital assets, much like traditional markets, is highly dependent on the balance of supply and demand in the market.
Digging into technology can help prevent bad decisions like the ones that cost us so much in 2022. There were a few times when I was really happy to buy tokens based on the project’s white paper and the strong narrative that drives it, but further research discovered. , with so much venture capital unlocking coming in, selling pressure will weigh on prices over the next few years.
Boomers who are used to calculating company numbers and calculating price-to-earnings ratios and price-to-earnings ratios and growth rates can apply these skills to data from CoinGecko or CoinMarketCap. The younger generation needs to learn why ‘circulating supply’ vs. ‘maximum supply’ matters, and why quantity matters.
In fact, cryptocurrency projects that resemble traditional value investments have held up relatively well in bear markets. Investors are becoming more aware of the differences between protocols that issue tokens as a means of raising capital and those that generate revenue and share it with owners. So-called “real yield” cryptocurrency projects are similar to companies that pay dividends. Baby boomer investors are familiar with it, and it’s probably what drives some of their investment decisions.
This is not to ignore the importance of narrative and community, especially in modern investing and cryptocurrencies. For example, decentralized perpetual trading platforms such as GMX, Gains and ApeX Pro have benefited from the pro-decentralization sentiment following FTX’s bankruptcy.
Investigating this aspect requires a good knowledge of social media, especially Twitter, as it is one of the main ways to reach the prominent analyst, founder and Degen of cryptocurrencies. Investors use these tools to find stories, assess where stories are in their lifecycle, and assess general market sentiment.
Related: 5 reasons why 2023 will be a tough year for global markets
However, millennials and Gen Z have less of an advantage when it comes to using social media to assess trends. Because social media is nothing new. It’s Web2 and everyone already knows how to use social media. In fact, young people turn social media familiarity into a disadvantage by overvaluing it as a research tool, while baby boomers tend to stick to the facts.
Traditional investment due diligence continues to distinguish men from men, as it has done throughout history. Therefore, they perform better than the younger generation. enter. If you’re looking for someone reliable and knowledgeable about due diligence, look no further than your parents and grandparents.
Nathan Thompson Bybit lead tech writer. He spent his decade as a freelance journalist, mostly covering Southeast Asia, before turning to cryptocurrencies during the COVID-19 lockdown. He holds a Joint Honors in Communication and Philosophy from Cardiff University.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.
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