The traditional financial system is increasingly out of sync with younger generations, according to a new Coinbase “State of Crypto” report based on an Ipsos survey of 4,350 U.S. adults conducted in Q4. Coinbase CEO Brian Armstrong says the message from Gen Z and millennials is unmistakable: legacy finance isn’t delivering the access or upside they expect, so they’re reallocating their money toward crypto and other non-traditional assets.
While stock ownership remains fairly consistent across age groups, how portfolios are built — and how often they’re traded — looks dramatically different for younger investors.
Younger Investors Favor Crypto, Risk, and Non-Traditional Assets
The report shows that roughly 47% of younger investors own stocks, nearly matching the 50% ownership rate among older adults. The similarity ends there. Younger respondents say about 25% of their portfolios are allocated to non-traditional assets such as cryptocurrency, derivatives, and private investments. Baby boomers, by contrast, report just 8% in those categories.
Risk tolerance is also higher among younger generations. Nearly 30% trade at least once a week, compared with only 10% of older investors. Use of margin is more than double, and a significantly larger share of younger respondents describe themselves as pursuing high-risk opportunities. Four in five say they like to try new investments before others do, and 84% want platforms that go beyond traditional stocks and bonds.
Access matters just as much as risk. A strong majority of younger investors say they want 24/7 markets, along with advanced crypto features such as derivatives, leverage, and DeFi-based lending — tools that better match their expectations of always-on digital services.
Why Gen Z and Millennials Say Traditional Finance Isn’t Working
The shift isn’t just about attitude; it’s also about lived experience. About 73% of younger adults believe it’s harder for their generation to build wealth through traditional channels, compared with 57% of older respondents. Even though about half of younger investors still own stocks, they are twice as likely as older investors to hold crypto.
Perception plays a powerful role. Eighty percent of younger respondents believe cryptocurrency creates financial opportunities they wouldn’t otherwise have, and roughly 70% say they personally know someone who has made “a lot of money” trading crypto. That social proof reinforces the idea that meaningful upside now exists outside legacy financial systems.
Younger investors are also changing how they learn. Instead of relying on traditional advisers, many are self-directed, turning to platforms like TikTok, Reddit, YouTube, and podcasts. About two-thirds say they would participate in copy or social trading, following friends or well-known traders — more than double the rate among older investors.
For crypto platforms and financial product builders, the implications are clear. Armstrong’s blunt assessment that the system “isn’t working” for younger people aligns with the data: products built around risk tiers, social trading, broader asset access, and round-the-clock markets are likely to define how the next generation of retail investors deploys its capital.
