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Crypto Young Investors: BaFin Study Reveals over 50% Trust Social Media and Finfluencers

Author: Content Editor
A recent study by BaFin suggests that younger investors between the ages of 18 and 45 are increasingly turning to social media, particularly platforms like YouTube and Instagram, for financial information. Over half of respondents from generations Y and Z consider social media a reliable source of financial guidance. This trend is reflected in their investment behaviors, as those who engage with social media have diversified their portfolios, including investments in securities and cryptocurrencies. The study also found that the popularity of cryptocurrencies has surged, with 32 percent of respondents investing in them in the past two years. The correlation between social media usage and crypto investments is notable, with 43 percent of social media users investing in crypto compared to 25 percent of non-users. Additionally, finfluencers, or social media influencers providing financial advice, play a significant role in shaping investment decisions, with more than half of respondents seeking financial information from them. However, many young investors are unaware of the compensation practices of finfluencers, as 37 percent did not know that they typically receive payment for their recommendations.

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