The percentage of women working in the financial world is low and their investment behavior differs greatly from that of men. This circumstance has a greater impact on cryptographic liabilities. But why are women staying away from the world of money and digital assets?
The proportion of women actively involved in the financial world is low. Because when it comes to stocks, ETFs, or cryptocurrency investments, women are more hesitant than many men. Stream data From the Deutsches Aktieninstitut indicates that the participation of women in investment is much lower than that of men. Accordingly, only about 3.8 million German men and 1.6 million German women invested in stocks in 2020.
Different growth during the Corona crisis
During the Corona pandemic, a strong increase in the number of new investors has been observed globally. In Germany, around 64,000 women have joined the pool of investors investing in ETFs and funds during this period. On the other hand, there was an increase of 1.1 million male investors. With an increase of only 6%, women are clearly underrepresented at this point.
The distribution between men and women in saving behavior is also interesting. meager Nine out of ten people in Germany save, but it is completely independent of gender: 89.4% of German men save, compared to 89.1% of German women. It can be seen that the trend towards saving itself is gender neutral. In contrast, there are distinct differences when it comes to saving behaviour. Only he can 18.4% of women rely on investment expertise when saving.
Cryptocurrency investment behavior
Female investors are also far behind when it comes to crypto investments. just about 20% of investors are femaleCryptocurrency trading platform Bitpanda announced in early 2020. When it comes to cryptocurrency investments, younger investors tend to be more willing to take risks than older generations. However, a gender gap can also be seen among millennials. For example, 27% of invested millennial women identify themselves as “aggressive investors/activists,” with up to 42% of millennial men identifying themselves as such.
After all, 2020 is a tumultuous year study Cryptocurrency exchange Gemini The number of female cryptocurrency investors increased by 20%. The eToro platform also reported a sharp increase in women’s registration in 2020. In addition, among those who plan to invest in cryptocurrencies, women are also represented by about 40%. And the number of registrations from female investors increased by 366% compared to 2019.
However, the percentage of women in cryptocurrency investments is still negligible. Figures from eToro show that only 15% of bitcoin investors are women. The share of Ethereum investors is 12%. In Switzerland even just give 5% of the women surveyed said they own bitcoinin men it is 16%.
Are financial matters limited to men?
Although many deny it, there is a certain tendency towards this prejudice. One Study by major Swiss bank UBS It shows that only one in five women make their own long-term financial decisions. 60% of women in partnerships leave the finances to their partners.
A problem with a particular interaction here is that men are also often credited with greater efficiency in financial matters. It is not uncommon because there is still an unequal distribution of earnings between men and women. Men are often the main earners. Thus, they are credited with greater efficiency in this field.
However, many studies show that men are not necessarily more successful when it comes to investments. One Study University of Berkeley They came to the conclusion that men are more likely to reduce their success through excessive trading than women, who tend to follow a more conservative ‘buy and hold’ strategy.
effects of underrepresentation
One of the reasons for the underrepresentation of women in the financial sector could be due to the complexity of the capital market and the large amount of different information. The thought quickly arises that one cannot be successful without great mathematical or technical knowledge. In mathematical and scientific fields, men are statistically significantly more represented than women. In the UBS study, 68% of women stated that you need a high level of knowledge in order to make good decisions in the financial market. Only 46% of all women stated that they have the necessary knowledge.
Interestingly, the opposite is the case for men: As the study from the University of Berkeley pointed out, male investors often overestimate their investment abilities. Of course, no generalization is possible here, but the study does describe some trends among male investors.
The lower participation of women in the financial market will become noticeable over time. We see each other today 19% of women over 65 experience severe poverty in old age Threatened, which amounts to about every five women in Germany. In contrast, only about 15% of men over 65 are at risk of poverty in old age.
Through investments for more independence
Poverty disproportionately affects women – all over the world. This is supported by various factors, such as the lack of education in dealing with financial affairs. But cultural conditions and family structures often prevent women from making their own financial decisions.
Thus, the effects and causes of the underrepresentation of women in the cryptocurrency space are closely related. As women struggle with their financial deficits, especially in developing countries, cryptocurrencies can represent a step in the direction of financial freedom. The The world of decentralized finance It provides opportunities to break through financial dependency. Because even in countries where people live in significantly greater prosperity, it is a matter of survival for women to take care of their finances.