- A new report found that an overwhelming number of investors turn to social media for advice, with YouTube being most people’s favored platform ahead of Facebook and Twitter.
- The report also revealed that despite the social media advice, 83 percent of investors feel more comfortable investing under the guidance of an expert.
Do you turn to Twitter, Facebook, or YouTube before making your investment decisions? It turns out you’re not alone. In fact, 4 out of 5 investors get their investment advice on the best penny stock or the next 100x cryptocurrency from social media, a new report has found.
The research was conducted by Appinio and was commissioned by eToro, the social investing platform that supports cryptos alongside stocks and commodities.
It found that 80 percent of investors depend primarily on social media for investment advice. YouTube is the most popular avenue with 63 percent of the respondents, while Facebook and Twitter come in second and third with 44 and 34 percent respectively.
The findings of the survey are not a surprise. With the highest percentage of the global population being below 30 years of age, social media has become extremely influential, even beyond investment decisions. Political elections are nowadays won or lost online, with Donald Trump proving just how powerful a platform like Twitter can be.
Related: Donald Trump’s social media app Truth Social is beating Elon Musk’s Twitter as Trump rules out return to Twitter
Crypto investors are no strangers to social media, with Twitter being ground zero for most crypto developments. Discord and Telegram also cater to more specific groups and discussion topics. A crypto project can shoot up or dip massively depending on the hype it generates on social media, with Dogecoin shooting up to be bigger than Japan’s largest bank almost purely from its online popularity.
The report further found that investing has evolved to become a social venture. 60 percent of the respondents said they feel more creative when in a group setting while half felt they learn better when they are being assisted by other people.
Yoni Assia, the eToro founder commented:
We are witnessing tectonic shifts in asset ownership and a convergence of finance and culture driven by the twin forces of technology and community. Millennials and Gen Z are on the threshold of becoming the new investor class.
Lule Demmissie, the CEO of eToro US echoed the founder’s words, adding that the results confirmed what the firm already knew to be true, “that the next generation of retail investors demands an experience rooted in community, with universal access to educational tools and expert analysis.”
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