I’ll be the first to admit that I am no investment guru. In fact, if you had asked me about money a few years ago, I would have told you it was in a “high-yield” (less than 1% interest, I’m always falling for marketing spiels) savings account that also doubled as my smoothie fund. But over the last five years or so I’ve started paying more attention to my money and more importantly how it works for me. Being married to someone who breathes, thinks, eats, and sleeps investing helps and has piqued my interest.
When I first started investing what surprised me was that few of my female friends were in the stock market and almost none were in crypto currency of any kind. While it doesn’t shock me that like with everything in life, there is gender imbalance in fintech — I am curious to know why more women aren’t invested in crypto and is this an economic opportunity that is going to pass us by?
What is cryptocurrency?
When you think of cryptocurrency, Bitcoin likely comes to mind. It is one of the best performing assets over the last year. While Bitcoin saw a large spike in gains in 2017 (the best yet) it has steadily climbed, reaching over $55,00 a coin, as of writing this article. Bitcoin landed on the scene in 2008, when Satoshi Nakamoto (a shadowy figure similar to Banksy in his obscurity) published a white paper about a class of currency not controlled by banks or government that could be used for transactions or as a store of value. This currency would be “mined,” and live in a digital ledger — the blockchain. Each bitcoin contains a million Satoshis (like cents to a dollar) and that’s what you buy when you invest in Bitcoin (assuming you don’t have $55,000 kicking around for a full coin). Alternative cryptocurrencies like Ethereum are more accessible and useable applications of the same concept. Ethereum for example is a blockchain based computing application that powers real life applications.
More recently, you might have seen the term NFT’s being thrown around. These Non-Fungible Tokens are unique pieces of digital art and powered by the Ethereum blockchain. There are various other crypto currencies that don’t have the market share of Bitcoin or Ethereum who own the lion’s share of the market, but they are all based off the same concept, sort of. . . let’s leave proof of stake for another day. Still here? Okay, whew.
Okay, I hear you, but why should I invest in crypto?
According to this survey, only 10-15% of all cryptocurrency investors are women. This gender imbalance means women are leaving a lot of meat on the bone that could go towards financing their futures, their businesses or even having wealth in retirement. As more and more companies start converting assets into Bitcoin (Tesla converted over $1.5 billion into coin in January of this year) and apps like PayPal, CashApp and even the City of Miami start accepting Bitcoin as acceptable forms of payment, we have to pay attention. The great thing about cryptocurrency is that because of its deregulated nature, it allows individuals to be their own banks and manage their own net worth (interestingly banks make it pretty hard to move money into crypto).
It’s a democratization of the financial system that until now has only been accessible in a meaningful way to high net-worth investors in closed-door deals. The recent squeeze of GameStop stock (GME) became a culture war between your average Reddit retail investor (that sits on threads like Wall Street Bets) and the big hedge-funds on Wall Street. In terms of returns, cryptocurrency like most risky investments is volatile and to anticipate year-over-year gains is unrealistic. What we can anticipate however, is a continued push for digital currency to democratize investing and the financial markets, giving ordinary people access to wealth they didn’t have before.
If cryptocurrency is the future of finance, then that’s where women need to be. Economic power is used to disempower women and so if women are to make financial gains in the markets, they need to be playing in the markets of the future — today.
Where do I go for information if I don’t want to be mansplained?
This is a fair question and one that seems to crop up when women talk about investing in general. Crypto, like most financial products, is male dominated and the podcasts, YouTube channels and bloggers who seem to be talking about it skew male. The good news is that as more women are taking control of their financial futures, social media is a great platform to connect with like-minded women with a passion for cryptocurrency and for investing in general.
Crypto Wendy @cryptowendy is a Tik Toker whose videos are a detailed analysis of market movements. She also provides tips and resources for how you can invest in crypto and the pros and cons of using various trading platforms.
Laurashin @laurashin
Laurashin is a Senior Forbes Editor and journalist who covers topics blockchain and crypto. She is a host on the Unconfirmed and Unchained podcasts and features guests on the past, present and future of the industry.
Preethi Kasireddy @iam_preethi
Preethi Kasireddy is a blockchain engineer who used to work for Coinbase and Goldman Sachs. Her blog is full of powerful insights about the blockchain for both beginners and pros alike.
Dovey Wan @DoveyWan is a founding partner of Primitive Ventures and a vocal presence on Twitter. Her feed is dedicated to all things crypto and as a card-carrying member of the crypto elite, she is a great resource for industry trends and tips.
Investing your hard earned money is scary and crypto is no doubt a volatile asset. But there are resources to help bridge the gap. Ultimately what sets crypto apart from legacy investing is that it truly has the power to equalize the playing field and change humanity. Whether you’re starting with $200 or $200K, cryptocurrency has the power to revolutionize the financial game. As women, we need a front seat so that we have many seats at the table when the reformation happens.
