Why Coinbase Says Younger Investors Are Betting on Crypto First

A new Coinbase report argues that Gen Z and Millennials are abandoning traditional wealth-building playbooks in favor of crypto, non-traditional assets, and hands-on trading strategies that sharply diverge from older generations.

Coinbase Q4 Report Reveals Sharp Shift in U.S. Crypto Investing Habits

Coinbase’s Q4 2025 report, The Generational Shift in Investing, draws on research commissioned by Coinbase and conducted by Ipsos Research among more than 4,300 U.S. adults, offering a detailed look at how younger investors are reshaping markets through behavior, risk tolerance, and asset preferences.

According to Coinbase researchers, younger generations increasingly view traditional paths such as stocks, homeownership, and long-term passive investing as insufficient for building wealth. The report finds that 73% of Gen Z and Millennial respondents believe it is harder for their generation to build wealth through traditional means, a sentiment Coinbase researchers say helps explain their willingness to explore alternatives.

While stock ownership remains roughly comparable across age groups, Coinbase data shows younger investors are far more likely to seek rewards beyond dividends, pushing them toward crypto, derivatives, and emerging financial instruments. Coinbase’s analysis also highlights a stark difference in risk appetite. Younger investors trade more frequently, use margin at higher rates, and often expect returns north of 15%, according to the report.

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Coinbase researchers note that nearly three times as many younger investors trade weekly compared with older cohorts, reflecting a more active and tactical approach to markets. When it comes to advice, Coinbase says younger investors are increasingly self-directed and socially informed. Rather than relying on traditional financial planners, they turn to friends, online communities, social platforms, and even artificial intelligence (AI) tools to guide decisions.

The report shows strong interest in copy trading and social trading, reinforcing Coinbase’s view that investing has become participatory rather than delegated. Crypto sits at the center of this shift, according to Coinbase. The report finds younger investors are twice as likely as older investors to already own crypto, and nearly half express interest in investing in new crypto assets before the broader market.

Coinbase researchers add that younger investors allocate roughly 25% of their portfolios to non-traditional assets, compared with just 8% for older generations. Looking ahead, the Coinbase study concludes that this generational divide is not a passing phase but a structural change, with younger investors expecting crypto and non-traditional assets to play a far larger role in the future financial system than they do today.

FAQ ❓

• **What is Coinbase’s “Generational Shift in Investing” report?**It is a Q4 2025 study commissioned by Coinbase and conducted by Ipsos Research examining how younger and older investors differ.
• **Why do younger investors favor non-traditional assets, according to Coinbase?**Coinbase researchers say younger generations feel locked out of traditional wealth-building paths and seek alternatives.
• **How important is crypto to younger investors in the report?**Coinbase finds that younger investors are twice as likely to own crypto and allocate more of their portfolios to it.
• **Does Coinbase think this trend will continue?**Yes, Coinbase concludes the shift represents a lasting change in how future investors approach markets.