It may come as a surprise to millennials, but a new survey has revealed that boomers are more invested in researching the crypto market. According to a report by consumer research firm Toluna, 34% of boomers spend “a few days” researching a project before investing in it, which is 50% better than other investors.
Yet, the data is alarming, with 64% of North American investors spending less than two hours or no research at all. Boomers are more likely to focus on technical factors like tokenomics and the competitive environment, rather than reputation elements, such as website aesthetics.
This shows that being a digital native does not necessarily give an advantage when it comes to cryptocurrency investments. Buffet-style analytical skills are more beneficial and are something that older investors have developed over time.
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It is possible that boomers have more time to research due to their retirement, and it may be beneficial for younger investors to learn from their experience. Although crypto and traditional markets are different, there are enough commonalities for analytical skills to be transferred.
Delving into the technical details of a project can help to prevent costly mistakes in 2022. For example, I once felt confident investing in a token based on its white paper, but further research revealed that there were too many incoming VC unlockeds, meaning that selling pressure would affect the price for years.
Boomers can apply their financial knowledge to CoinGecko and CoinMarketCap data and understand why circulating supply and volume are so important. Cryptocurrency projects that look like traditional value investments have also performed well in bear markets, and investors are more aware of the distinction between tokens that issue revenue and those that don’t.
Narratives and communities are also essential, and it is important to use social media to get in contact with prominent crypto analysts. This can help to detect the life cycle of a story and see how the market is reacting to it.
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Boomers may have an edge over younger generations when it comes to social media as well, as they are more likely to focus on the facts rather than hype. Traditional due diligence still has the power to separate the amateurs from the professionals, and it is likely that boomers will continue to outperform the younger generations for some time.
If you are looking for someone experienced to provide advice, your parents or grandparents may be the ideal choice. Investing in crypto requires knowledge of both the technical and narrative aspects, and by learning from the past we can make better decisions in the future.
Nathan Thompson is a senior technology writer for Bybit. He has 10 years of freelance journalism experience in Southeast Asia, before turning to cryptocurrency during the COVID-19 lockdowns. He has a joint honors degree in philosophy and communication from Cardiff University.
This article is intended for informational purposes only and should not be construed as investment or legal advice. The views, thoughts, and opinions expressed in this article are solely those of the author and do not necessarily reflect the views or opinions of Cointelegraph.