3 things every Gen X crypto investor needs to know

A Gen X crypto investor might have a lot of concerns about the world they’ve just decided to enter. After all, Gen Xers as a whole haven’t been as bullish on crypto as younger generations, and many are hesitant about investing for several reasons. 

As the generation with the most debt—even more than millennials—it makes sense that Gen X would be wary of investing their money in something so new.

But for a Gen X investor who’s decided to take the plunge into crypto, what are three crypto investing tips they should keep in mind?

There can only ever be 21 million Bitcoins

The first thing a Gen X crypto investor should know is that crypto can actually be a great way to protect against inflation. Governments and central banks are typically the reasons behind inflation. And Gen Xers, after having lived through multiple recessions, don’t need to be told about the harms of inflation. 

Crypto, and Bitcoin in particular, can act as a hedge against inflation because there is a fixed supply. There will only be 21 million Bitcoins in existence. In many ways, this makes it a better store of value than the dollar because this limited supply will keep the value high. 

This led to many people investing in Bitcoin during 2020 to hedge against future inflation due to the Covid-19 pandemic. This is also why Bitcoin is one of the best choices for new crypto investors.

In 2022, there Were over 300 million crypto users globally¹

A common fear that older generations have surrounding crypto is that it is a scam. However, the increasing number of people who use crypto worldwide shows that it is a legitimate industry.

If you’re looking to invest in crypto, now is one of the best times. The industry is still new enough so that it’s not too late to miss out on any gains, but advanced enough that there are various platforms and businesses that help beginner crypto investors get started in the industry.

Companies will spend $20 billion a year on blockchain technology in the next few years² 

Many Gen X investors are reluctant to get into crypto because they believe they’ll increase their risk of getting hacked if they keep their finances on the blockchain, which is the underlying technology behind most coins.

However, every Gen X crypto investor should know that the blockchain industry is rapidly growing because many companies are beginning to recognize how much more secure it is compared to traditional systems.

This is because blockchain is decentralized, so there is no way for any single person to gain control over the system.

Many companies are currently looking into blockchain technology for a wide range of uses, from healthcare and real estate to media and retail.

What every Gen X crypto investor needs to know

Many Gen X crypto investors are turned off from crypto because of its notorious volatility and relative newness in the financial world. As a new investor, it’s important to keep in mind that top-performing cryptos like Bitcoin and Ethereum can potentially show a good return on investment if held over the long term. 

Also, remember that most cryptos you’re investing in aren’t designed to be currencies like Bitcoin. Instead, many coins on the market serve as a way to invest in the tech companies behind them.