A new economic environment calls for new investment strategy for women

A new federal Gov’t, a pandemic, a war and tough trading markets, has prompted women to investigate something new for their investment portfolio. According to a survey by Fidelity, despite lacking confidence in their investment techniques, 20% of women have decided these conditions need a new strategy to help them achieve options for their future they desire.

What is the female crypto investment landscape like?

One of the different types of investment strategies that has picked up in popularity among women within the last few months is cryptocurrency: a digital currency that has provided a lucrative investment market in recent years. The value of some of these virtual currencies, of which there are thousands globally, can be in the tens of thousands of U.S. dollars.

The share of men who own crypto has always been more than double the share of women, but now in recent months the gap is swiftly closing. Crypto is the perfect addition for society, but particularly for women. It is difficult to believe this in our privileged part of the world, but in some countries, there are legal limits on a woman’s financial autonomy. Crypto, then, is a way for women in these countries, or those suffering financial abuse to save money.

According to Motley Fool, prior to the pandemic, while true that women may have lacked confidence in their investment techniques, they were investing quite well. It wasn’t just a fluke either: Openfolio reported that women outperformed men in 2014, 2015 and 2016.

Why are there fewer female investors vs male?

The main concern for female investors is being largely risk evasive. According to community-based financial services company Wells Fargo, only 4% of millennial women are prepared to take a risk when investing, which is a shame, because millennial women have a large investment horizon and a lot of time ahead of them to make up for any dips in performance.

The very nature of Cryptocurrency however, means it is high risk and volatile. Unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of cryptocurrencies to quickly drop by hundreds, if not thousands of dollars. Cryptocurrencies are currently unregulated by both governments and central banks.

This means would-be investors should ensure that they fully understand the risks. Some information about searching for the best crypto exchange in Australia can be found here.

According to the survey by Fidelity, women are generally okay with asking for advice from others who may know about investment; in fact, twice as many as men, and 90% want to learn more about investment choices and financial planning. So, if they are willing to learn more about the basics of cryptocurrency and become more comfortable with investing in cryptocurrencies, it may be the perfect investment tool in today’s climate.

Kevin Groves is the founder of HedgewithCrypto.com.