The number of female crypto investors rose 172% on an annual basis in 2021, while the number of male investors grew 80%, according to BTC Markets’ 2020-2021 report.
Historically, crypto has been considered a volatile, high-risk investment. However, the rise in female investors points to a change in the perception since female financial behavior is more risk-averse.
The significant difference between increase rates indicates that not all crypto investments have to be high-risk. The report states:
“This increase in female investors is important. In behavioral finance studies, women are often found to be more risk-averse in their investment decisions than men. More women trading cryptocurrency dispels stereotypes around cryptocurrency investors being risk lovers.”
Women use a structured trading system
The Australian crypto exchange’s report also shows that women adopt a more structured trading strategy where they invest more and trade less.
In 2021, female investors traded twice a day on average compared to five times for males, which suggests that women take a smaller range of more focused positions than men.
Women deposit larger amounts for their initial deposits. For example, in 2021, the average initial deposit for women was $2,381, while for men, it was $2,060. The report comments on this difference and states:
“This initial confidence may reflect the degree of consideration driving their investment behavior – effectively ‘backing themselves.”
On the other hand, the average portfolio sizes appear higher for male users. Women hold $2,650, compared to $3,049 for men.
Based on women’s initial deposit and trading behavior, their portfolio size should have been larger than men’s. The report justifies this difference by stating:
“Playing with the risk-averse narrative, women investors appear more likely to self-custody compared to their male counterparts.”
What does it mean?
BTC Markets’ report also supports the previous data showing an increase in female investors while providing insights into their investment behavior.
Women increased in number as they found the opportunity to exercise a low-risk investment strategy in the crypto market. This shift also transforms the opinion on crypto from male-dominant and high-risk to a traditional investment method. The report stresses the importance of that shift and notes:
“As more women invest, the industry becomes more representative of the investment community as a whole. That, in turn, advances its reputation as an asset class that can sit alongside other traditional investments.”