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The cryptocurrency universe has long been viewed, and accurately so, as a place where fortunes can be created or erased in short time frames. Memecoin mania has only cemented the casino-like feel of the crypto world.
However, data indicate skepticism regarding crypto investors’ level of commitment may not be warranted and that’s pertinent to other areas of their lives, including personal relationships. So advisors ought to be open-minded when dealing with crypto-enthused clients and prospects and eliminate pre-conceived notions about that constituency.
Consider the findings from a recent survey by Binance – the firm behind the trading platform of the same name and the BNB digital currency. Put simply, many crypto investors approach the asset class with a long-term point. Interestingly, the study also says that point of view carries over to their love lives.
Of Love and Crypto
The Binance survey, which coincidentally was released on Valentine’s Day, does a fine job of dispelling the notion that a majority of crypto market participants are short-term traders.
“Forget the image of the impulsive trader chasing moonshots – Binance’s latest survey suggests that most crypto investors approach both love and money with patience and a long-term vision,” notes Binance. “Nearly half of respondents (49%) see themselves as ‘Forever HODLers,’ committed to both their portfolios and their romantic partners for the long haul.”
Now don’t get it twisted. There probably isn’t much, if any, science to suggest that long-term investors make better significant others than short-term traders. Even the Binance study points out that 19% of respondents are willing to take financial risk, but that doesn’t transfer over to their personal lives where their apt to take long-term views.
The point is that cryptocurrency is like any other asset class in that there is no uniformity among its participants, but there is a surprising level of long-term thinking with crypto.
“Some investors rely on careful planning, treating both their portfolios and relationships with calculated precision,” adds Binance. “They analyze risks, make informed decisions, and ensure that every move – whether financial or romantic – aligns with a long-term vision. Others, however, go with their instincts, following their gut in both investing and love. These romantics trust emotions over charts, believing that the best decisions aren’t always the most logical.”
Sacrifices Are Made
Call it compromise or sacrifice or both, but productive personal relationships often require some sacrifice. That’s true of investing, too – an endeavor that can force people to open their minds, move out of their comfort zones and alter habits on the way to better returns.
Crypto investors are amenable to sacrifice in the name of bolstering their portfolios. For advisors, that’s an encouraging sign because it indicates these market participants, many of whom are younger, are willing to eschew frivolities to build wealth.
“Both financial success and meaningful relationships demand commitment, and the survey suggests that crypto users are willing to make trade-offs to support their priorities,” concludes Binance. “Some refuse to sacrifice anything for their investments, keeping both their crypto and their lifestyles intact. Others adjust their spending, delaying major purchases (15%), cutting back on shopping (14%), or even reducing travel (13%) to build their portfolios.”