Gen Z Dominates Crypto Copy Trading Space, 85% Profit


Once
incredibly popular in the contract for difference (CFD) market, copy trading solutions are now
also captivating the hearts of cryptocurrency users. Copy and social trading are increasingly employed by investors in the digital
asset landscape, as demonstrated by the latest research conducted by the Bitget
exchange .

The
research shows Generation Z traders lead this trend, representing 44% of
all copy trading users. Additionally, while other age groups also participate,
traders from Africa and Commonwealth of Independent States (CIS) countries
showed significant interest in this trading method.

The study
assessed the trading activities of a wide array of active crypto traders over
the first half of 2023. More than 109,000 traders profited using copy trading
techniques, amassing over 74 million USDT in cumulative earnings. The research
demonstrated a high success rate among copy traders: 93% of futures traders
and 82% of spot traders made profits using this strategy.

Bitcoin
(BTC) was the most frequently traded asset via copy trading (52%), trailed by
Ethereum (ETH) at 44%. Geographically, most copy traders hail from Western
Europe (31%), East Asia (26%), and Southeast Asia (19%). Even though Africa
represents a smaller share of users, it tops the list in terms of interest in
copy trading, signifying the emerging nature of crypto markets in the region.

Source: Bitget

“These
survey results are indicative of the general market sentiment,” Gracy Chen, the
Managing Director of Bitget, commented on the release of the survey. β€œThe use
of advanced tools, including AI-based ones, is making such strategies as copy
trading both accessible and profitable for users who do not have extensive
knowledge of trading.”

Gen Z Takes the Lead

The study
revealed that Gen Z users, who are typically tech-savvy and influenced by
social media, make up 44% of all copy traders on Bitget. They are followed by
the 25-35 age bracket (32%), the 35-55 age group (17%), and individuals over 55
(7%). About 72% of traders under 25 use Bitget primarily for its copy trading
platform, with a comparable proportion of 65% seen in the 55-64 age group.

Source: Bitget

β€œSocial
trading is a major force that is shaping the industry landscape as users are
cooperating even more as a holistic community. We at Bitget are determined to
continue improving our copy trading feature, and that coincides with the
general philosophy of our ‘Smarter Trading’ slogan,” Chen added.

A report by
The Insight Partners supports Bitget’s findings, projecting that the social
trading industry will grow at a CAGR of 7.8% and reach $3.77 billion by 2028, a
significant increase from $2.2 billion in 2021.

The rising
popularity of copy trading among cryptocurrency traders is indicated by the
increasing number of exchanges beginning to incorporate it into their services.
At the start of this year, the OKX platform provided its global user base with
access to services for copying the positions of other traders.

However,
the industry is being scrutinized more seriously by regulators. In March, ESMA
announced its intent to emphasize enhanced investor protection for those using
copy trading. This is especially pertinent given that some form of it is now
offered by every third investment firm in the FX/CFD market.

Once
incredibly popular in the contract for difference (CFD) market, copy trading solutions are now
also captivating the hearts of cryptocurrency users. Copy and social trading are increasingly employed by investors in the digital
asset landscape, as demonstrated by the latest research conducted by the Bitget
exchange .

The
research shows Generation Z traders lead this trend, representing 44% of
all copy trading users. Additionally, while other age groups also participate,
traders from Africa and Commonwealth of Independent States (CIS) countries
showed significant interest in this trading method.

The study
assessed the trading activities of a wide array of active crypto traders over
the first half of 2023. More than 109,000 traders profited using copy trading
techniques, amassing over 74 million USDT in cumulative earnings. The research
demonstrated a high success rate among copy traders: 93% of futures traders
and 82% of spot traders made profits using this strategy.

Bitcoin
(BTC) was the most frequently traded asset via copy trading (52%), trailed by
Ethereum (ETH) at 44%. Geographically, most copy traders hail from Western
Europe (31%), East Asia (26%), and Southeast Asia (19%). Even though Africa
represents a smaller share of users, it tops the list in terms of interest in
copy trading, signifying the emerging nature of crypto markets in the region.

Source: Bitget

“These
survey results are indicative of the general market sentiment,” Gracy Chen, the
Managing Director of Bitget, commented on the release of the survey. β€œThe use
of advanced tools, including AI-based ones, is making such strategies as copy
trading both accessible and profitable for users who do not have extensive
knowledge of trading.”

Gen Z Takes the Lead

The study
revealed that Gen Z users, who are typically tech-savvy and influenced by
social media, make up 44% of all copy traders on Bitget. They are followed by
the 25-35 age bracket (32%), the 35-55 age group (17%), and individuals over 55
(7%). About 72% of traders under 25 use Bitget primarily for its copy trading
platform, with a comparable proportion of 65% seen in the 55-64 age group.

Source: Bitget

β€œSocial
trading is a major force that is shaping the industry landscape as users are
cooperating even more as a holistic community. We at Bitget are determined to
continue improving our copy trading feature, and that coincides with the
general philosophy of our ‘Smarter Trading’ slogan,” Chen added.

A report by
The Insight Partners supports Bitget’s findings, projecting that the social
trading industry will grow at a CAGR of 7.8% and reach $3.77 billion by 2028, a
significant increase from $2.2 billion in 2021.

The rising
popularity of copy trading among cryptocurrency traders is indicated by the
increasing number of exchanges beginning to incorporate it into their services.
At the start of this year, the OKX platform provided its global user base with
access to services for copying the positions of other traders.

However,
the industry is being scrutinized more seriously by regulators. In March, ESMA
announced its intent to emphasize enhanced investor protection for those using
copy trading. This is especially pertinent given that some form of it is now
offered by every third investment firm in the FX/CFD market.



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