Research finds women are smarter at crypto investing than men

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Tuesday 10 May 2022 3:46 pm

Research from an investment trading platform has discovered half of its female users hold bachelor or master’s degrees – compared to just 37 per cent of male traders.

The findings were revealed in Capital.com’s group quarterly report which tracks the trading patterns of four million retail investors across all markets.

According to Laura Lin, CEO of the group’s Asia Pacific region, the data confirms that education success could be major a key to driving greater female participation in crypto markets. 

“A big part of trading and investing is about building confidence through research, education and learning,” she said.

“Based on our findings, female traders are more likely to trade and invest for themselves if they are informed and educated. Building confidence via education is important to create a more inclusive and level playing field when it comes to trading and investing.”

Remarkably, despite revealing that female traders largely had higher levels of education, women only accounted for around 13 per cent of the company’s client base. Although, this varies somewhat between regions. 

Australia has the highest number of female traders, accounting for 16% of its overall trader numbers in that country, while the  Middle East had the lowest number of female traders at just six per cent. Latin America (11 per cent) and European Union countries (12 per cent) are generally on par with each other sitting in the mid-range. The UK accounts for slightly higher levels of female participation at 14 per cent.

“As more women generate their own wealth, they will increasingly control the deployment of their assets and become key financial decision-makers in their households,” Lin added.

“This trend, which is a characteristic of many emerging economies, contributes to greater financial and investing confidence among women.”

The data also showed that women were perhaps more disciplined and considered when it comes to investing and trading.

According to the report, in the first quarter of 2022, deposits made by Capital.com’s female traders were 34 per cent smaller than those of men.

The report also found female traders were more prone to short-selling versus male traders.

“We found that 36 per cent of our female clients classify as short traders, whereas for male traders it was only 29 per cent,” Lin said.

“That does not mean our female clients are short sellers, but it could mean they understand both sides of a trade and evaluate entry from a short seller’s perspective more than men.

“This mindset can also help traders to identify opportunities under bearish market conditions.”