Gen Z sets the standard for crypto ‘social trading’
The top cryptocurrency exchange in the world, Bitget, has published study findings related to the copy and social trading phenomena on its site. The research shows that users in Generation Z make up 44% of all users of copy trading, showing the most interest in this trading approach. Older cryptocurrency traders also utilize copy trading to obtain market trends and insights. The Insight Partners analysis, which said that the social trading market is increasing at about 7.8% CAGR and is predicted to reach a mark of US$3.77 billion by 2028, is supported by the Bitget study. Such expansion from US$2.2 billion in 2021 underlines the significance of the exchange’s involvement in boosting copy trading’s popularity.
A group of active cryptocurrency traders who completed trades all year long were considered in Bitget’s research. More than 109,000 followers made money in the first half of 2023 using copy trading strategies, translating into total gains of more than 74 million USDT. An astonishing 93% of those that used copied methods for futures trading during this time saw gains. The most often exchanged asset through copy trading was bitcoin (52%), followed by ether (44%).
Geographically speaking, the majority of Bitget’s copy traders are based in Southeast Asia, East Asia, and Western Europe. With 31% of all copy trade users, Western Europe has the biggest proportion among these areas, closely followed by East Asia (26%), Southeast Asia (19%), and Asia (26%), respectively. African users make up a tiny part of users. Still, they show the highest interest levels due to the continent’s developing cryptocurrency marketplaces, where users are frequently less experienced and more likely to utilize copy trading as a starting point.
Gen Z users, who increasingly prefer social media to conventional media, their friends, and family, are particularly fond of the copy-trading option regarding demographics. Under-25 crypto fans make up 44% of all copy traders on the site, with the 25–35 age bracket coming in second at 32%. 17% of users are between the ages of 35 and 55, while 7% are above 55. Although there are fewer senior copy traders, it is important to note that they are quite interested in copy trading. The copy trading function of Bitget, which is also the major reason they use Bitget, attracted 72% of traders under 25 who expressed interest in it, according to the statistics. The percentage rose to 65% in the 55–64 age range during the same period. To get financial tips, older cryptocurrency traders frequently employ copy-trading techniques.
