Baby Boomers are now the fastest growing demographic investing in cryptocurrency but should be mindful of “cryptoscams”, an expert has warned.
But as a demographic known to be targeted by scammers, Baby Boomer investors need to “do their homework”, founder of Digital Wealth Group Sydel Sierra said.
“Baby Boomers aren’t the largest group of investors but they are the fastest growing,” Sierra said.
“A lot of them have only just hit retirement, and that has been the catalyst for a lot of them to reassess where their money is invested.
“Five years ago, they were probably still working.”
Almost a third (31 per cent) of Australian adults own cryptocurrency, the index shows.
The largest group of cryptocurrency investors is 25- to 34-year-olds, at 52.9 per cent.
Over-65s represent just 8.2 per cent, but that number has risen from 2 per cent in the last five years.
“My advice to seniors is do your homework, and if you’re feeling overwhelmed, don’t give up, just seek some help from a trusted source, be that a relative, such as an adult child who might’ve introduced you to crypto, or a professional consultant,” Sierra said.
According to a University of Queensland study, more than $170 million was lost by Australians to cryptoscams in 2023 alone.
More than a third of those studied admitted to being “influenced” by content online and more than 60 per cent said their first exposure to cryptocurrency was on social media.
“There’s nothing wrong with reading about crypto on Facebook or Instagram but it’s important people don’t see a single tweet or TikTok video and decide to ‘bet the farm’ on a random coin,” Sierra said.
“You can always ‘play it safe’ when you first start trading and invest a modest amount in the more reputable coins like Bitcoin, which has still doubled in value in the past 12 months – at least until you feel confident.
“I would never advise a first timer, whether they’re a senior or anyone else, to dabble in high-risk meme coins.
“My number one recommendation is always maintain custody of your (crypto) keys and wallet – anyone who says they’ll manage your money for you, is a huge red flag.”
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