4 Reasons Women are investing in Crypto
Women are no strangers to the gender wage gap. In 2020, American women earned 83 cents to every dollar their male counterparts made. This disparity in wealth has been a massive setback for women, forcing them to work more than one job to compensate for the financial loss. However, women have been outperforming men by 0.4% in earning money through smart investments. So, it’s no surprise when the investment sector was trending with cryptocurrency; it attracted their attention.
Globally women make up roughly 20% of cryptocurrency investors. While this number may seem less, exploring what attracts women to this digital currency must be interesting.
Investments are all about making secure and stable funds in risk-effective ways. This kind of mindset is particularly accessible to women. To help you understand further, here are some reasons why women are investing in crypto:
What Is Cryptocurrency?
These decentralized digital assets use cryptography to secure transactions. Cryptocurrencies work on a decentralized network and are not subject to government or financial institution control.
The mining process involves verifying cryptocurrency transactions and adding them to the public ledger, also known as the blockchain. Miners are rewarded with cryptocurrency for their efforts.
Cryptocurrency has become a popular form of investment as it gains more traction and popularity.
To invest in cryptocurrency, you need to open an account with a trading platform and deposit funds into it. Once your account is funded, you can start buying and selling digital currencies.
You can set up an account with a broker or use a trading platform like Currency.com to trade cryptocurrencies. By far, the most popular cryptocurrency is Bitcoin, followed by Ethereum.
Why Are Women Investing In Crypto?
Historically, men dominated investing in crypto, with over 16% of the gender willing to put their money down compared to roughly 7% of women in the US. However, as cryptocurrency became more mainstream and information and simple techniques to study the exchange rates flooded the Internet, most women took advantage of the knowledge. As a result, more than 15% of American women are now interested in investing in crypto. Here’s why this change occurred:
1. Women Know When to Invest
According to a recent study, the number of women investing in cryptocurrency has increased significantly in recent years. In 2018, only 8% of investors in the digital currency space were women. By 2019, that number had increased to 22%.
There are a few reasons why more women are investing in cryptocurrency. First, the industry is becoming more accessible. In the past, most people often saw crypto investing as too complicated and risky. However, with the proliferation of online resources and mobile apps, it’s now easier to start.
Second, cryptocurrency is seen as a level playing field. Unlike other industries, such as real estate or the stock market, crypto is not dominated by men. In fact, some of the most successful investors in the space are women.
And finally, many women see cryptocurrency as a way to financial independence. With crypto, you can be your own boss and control your own finances. This is a significant appeal for many women who are looking to take control of their financial future.
2. Cryptocurrency Is Democratic
According to the World Bank, roughly 160 countries put gender-specific restrictions on women when opening a bank account. This can make it challenging for them to start a savings account or safely collect their income, making them dependent on men. So without their husbands, brothers, and male relatives, they may not get the opportunity to manage their accounts. This is a common cultural practice in certain patriarchal countries, which men heavily control.
Even if the bank opens an account, a middle person is required to help maintain it, which prevents women from developing their financial profile. Traditional economic systems discriminate against women, with nearly 1 billion women excluded from investing for gender-specific reasons.
However, Blockchain technology doesn’t work the same way. A woman may not face deductions in her savings and investments because of her gender. It also removes the need for any regulating authority and middleman. This gives women the space to manage their portfolios independently.
So anytime a woman invests, she earns according to the crypto market rates. As a result, one in every three American women is ready to invest in crypto in 2022.
3. Helps Supplement Income
Women may turn to cryptocurrency to make up for their income if they work from home. More than 20% of American women are exclusive online business owners. Therefore, it is easier for them to access information on cryptocurrency and leverage exchange platforms to generate tangible profits, which these women can add to their current balance.
Crypto blogs also noted that one in five women use crypto to reach their financial goals. These include vacationing, funding an early retirement, and purchasing a house. As crypto is the perfect long-term investment, it aligns with their interest. Almost 70% of American women own cryptocurrency and use it following the long-term investment principle.
4. Blockchain Companies Are Investing In Women
Blockchain companies like Algorand have donated more than $100,000 to blogs and websites encouraging women to learn about blockchain technology. And the UNICEF Innovation Fund provides a steady cash flow to blockchain companies and is willing to support more than 50% of women-owned businesses. This investment aims to allow more decentralized financial entities to pop up and become a part of the commerce sector. They enable consumers to engage with traditional and online marketplaces exclusively managed by crypto.
Final Thoughts
Cryptocurrency is a digital asset that has steadily paved its path as a steady investment opportunity. The hype about this asset has attracted both men and women. In a world where the gender wage gap can be discouraging for women, crypto provides an ideal solution.
Crypto technology is free of gender bias and allows women to think, evaluate and inspect before investing instead of pressuring them to put money down. It is also a great source of freedom as women can manage their profiles and earn money for themselves.
