Cryptocurrency trading, like finance in general, has a reputation as a male-dominated space. And that’s largely because it is. A 2013 survey found that 96% of Bitcoin users were male, a number that has remained relatively stable over time. Most surveys from 2017 and 2018 suggest that Bitcoin users and crypto traders were still about 85% to 90% male.
Investing is one of the few viable ways to build up wealth and yet, women are far less likely to engage in cryptocurrency trading than men for various reasons. Some of these reasons are merely stereotypes or misconceptions that have been reinforced over time:
Reason #1: Women earn less than men, so of course they invest less
Even across more progressive EU countries such as the UK, The Netherlands, and Germany, a considerable gender wage gap still exists. This is turn results in a gender investment gap. As men are more likely to invest than women, this means that the difference in wealth held by both genders is only amplified over time. In order to narrow this gap, women need to start investing themselves.
And while there’s a lot of work to be done to close the gender pay gap, women can take immediate action on what they are doing with their money right now.
Reason #2: 61% of millennial women leave investing to their partners
Although women are contributing more and more towards household income, data from a recent UBS survey shows that 56% of women, and 61% of millennial women in particular, still leave investment decisions to their partners after marriage. Women may see themselves as the “CFO” at home by running the family budget, but this does not equate to securing their financial future.
Taking a backseat role when it comes to investing and financial planning can have serious future implications. Women are outliving men all around the world, and nearly half of all marriages end in divorce. UBS estimates that many women, perhaps as many as eight out of ten, will be left solely responsible for their own financial well-being at some point in their lives.
Reason #3: Women underestimate their own financial savviness
Back in 2017, American financial services giant Fidelity conducted an interesting study on the differences in financial confidence between men and women. The results showed that while women tend to underestimate their own knowledge and ability to invest effectively, in reality they actually outperform men when it comes to generating a return on their investments.
The women surveyed consistently underestimated their own abilities while overestimating what is required to be financially involved. This was regardless of education level and professional achievements. Both history and society have conspired to affect women’s financial confidence, and these findings may be based on the common assumption that you need to be a financial whiz in order to become a successful investor.
In reality, technology has taken down many of the traditional barriers to investing by making tools and resources more accessible. Our own data backs this up. Female traders account for a little over 10% of the total user base on Bybit, yet they are outperforming their male counterparts.
Reason #4: Cryptocurrency trading has a reputation for being risky
The cryptocurrency trading scene is often depicted as a high-octane, precarious environment, better suited to those who enjoy the adrenaline rush. It’s well known that the cryptocurrency market can experience tremendous volatility as well as mind-boggling rates of return.
That being said, there are still individuals that are making tremendous amounts of money through cryptocurrencies, who have opted to take a higher degree of risk to gain a higher rate of return. In other words, while cryptocurrency trading is a high-risk proposition for most people, it’s this risk that directly affects the potential return.
Reason #5: Only 46% of millennial women feel confident about investing
A recent Merrill Lynch study showed that only half of women are confident about investing, versus 68% of men. Millennial women were the least confident of all the groups surveyed, at 46%. But once women decide to invest, their financial confidence skyrockets.
Many women reported in that the language and visual aspects used in the financial sector are largely male-orientated and somewhat exclusionary. At Bybit, our mission is to make cryptocurrency derivatives trading accessible for everyone, regardless of net worth, experience, or their gender. We aim to build a faster, fairer, and more human trading environment, which makes it possible for everyone to invest in their financial future.