Cryptocurrency has historically been a male-dominated market, but women are becoming increasingly interested in the opportunities available. The number of female investors in cryptocurrency has risen in recent years, and more women have become aware of digital asset opportunities.

If you’re a woman considering investing in cryptocurrency, getting started can feel overwhelming. To support you on your journey, we spoke with several female leaders in the cryptocurrency space to learn about the community resources available for female investors and hone in on the steps you should take when starting to invest in cryptocurrency.

Key Takeaways

• Women make up only about one-third of crypto investors in the U.S., but more than half of crypto-curious individuals.
• Crypto is a male-dominated market due to its connection to the male-dominated finance and technology industries, but women are expressing more interest.
• There are many online cryptocurrency communities dedicated to women, and they can be key in overcoming gender barrier challenges and building confidence.
• Before investing in cryptocurrency, it is important to understand its basics and learn how to purchase and store coins securely.

Overcoming Challenges and Building Confidence

Only about one-third of crypto investors in the United States are women, according to Gemini’s 2022 Global State of Crypto report. That number is largely representative of First World countries, though women in the developing world invest in cryptocurrency at higher rates.

It’s not particularly surprising that women are underrepresented in cryptocurrency. It sits at the intersection of two male-dominated fields: finance and technology.

“Women face the same biases as in tech and financial sectors, such as skepticism about their technical expertise and financial acumen,” says Lisa Carmen Wang, the founder and general partner of Bad Bitch Empire, a community designed to help women build wealth by investing.

Historically, women have been structurally—sometimes even legally—excluded from these industries. Today, they make up a minority of employees in both fields—about 35% of STEM employees in the United States and 46% of financial sector employees (though only 15% of leadership roles).

“There’s a visible lack of female role models and leaders in the cryptocurrency space, which affects confidence and deters women from participating,” says Wang. “Also, cryptocurrency and blockchain technology thrive on community and network effects, and men often have more established networks in these fields, which can be a barrier for women trying to enter the space.”

Understandably, women’s underrepresentation in finance and technology has translated to a lower participation rate in cryptocurrency and blockchain. But that doesn’t mean women have written off cryptocurrency.  In fact, Gemini’s State of Crypto report found that more than half of crypto-curious individuals in the United States are women.

The Investopedia and REAL SIMPLE 2024 Her Money Mindset survey found cryptocurrency is the third most popular type of investment among women in the millennial generation or younger. Overall, 8% of invested women said they hold cryptocurrency.

However, while there are barriers in the crypto space, there are also interesting opportunities as well. According to some women, cryptocurrency feels more female-friendly than the traditional world of finance. Its decentralized nature eliminates many of the gatekeepers that have traditionally kept women out of power and wealth.

“Despite these challenges, it’s important to acknowledge that the crypto space is meritocratic,” says Marissa Kim, head of asset management with Abra Capital Management. “Individuals with knowledge and skill are welcomed regardless of gender. Unlike some of the more traditional hierarchical systems, the crypto industry is generally open to newcomers who demonstrate expertise and capability.”

What Are the Benefits of Joining Crypto Communities as a Woman?

The most common theme among the women we spoke with was community. Unlike the world of traditional finance, cryptocurrency has a shorter history and fewer centralized entities. As a result, people are more likely to learn from each other than from official organizations.

At the same time, many of the communities dedicated to cryptocurrency were founded by and are largely populated by men, leaving some women to feel uncomfortable or unwelcome. 

Elaine Asher, the founder and chief strategy officer of EVE Wealth, describes first learning about cryptocurrency from her male colleagues in finance and then attending crypto meetups “where I was often the only woman, and the only person not wearing a hoodie.”

For Asher, attending her first community event specifically for women in cryptocurrency was a transformational experience. She describes feeling like she wasn’t alone in the cryptocurrency space for the first time

“Women, more so than men, enjoy learning together, especially when it comes to new and potentially intimidating subjects,” says Asher. “Women don’t want to feel like they are alone on an island trying to figure out something as complex as crypto by themselves…”

Asher continues, “They also enjoy learning with and from their peers in a supportive environment where no question is too basic. Studies show that engaging in a community boosts confidence and problem-solving skills, both of which are important for making investing decisions.”

Important

Here are some examples of crypto-focused community platforms for women: 

How to Get Started

Here’s a short summary of how to start investing in crypto, regardless of gender:

Understand How Cryptocurrency Works

Cryptocurrency is a digital asset. Though it’s referred to as a digital currency, it’s not in the same category as fiat currency like the U.S. dollar. As a decentralized form of asset, cryptocurrencies aren’t created by, controlled by, or backed by the U.S. government (or any government, for that matter). While a stock’s value is based, at least partially, on the performance of the company—cryptocurrencies’ value is based entirely on what investors are willing to pay for it. Thus, it doesn’t necessarily have any intrinsic value.

Cryptocurrency has several different uses, and as of early 2024, there were more than 9,000 cryptocurrencies on the market, but most have little to no value. The most popular cryptocurrencies by market capitalization are Bitcoin, Ethereum, and Tether USDt.

Choose a Cryptocurrency Exchange

To purchase cryptocurrency, you’ll usually have to set up an account with a cryptocurrency exchange. Think of these exchanges as brokerage accounts for cryptocurrency. Just as you would log into your brokerage account to buy stocks, bonds, and funds, you can log into a crypto exchange to buy a variety of cryptocurrencies.

“First, choose a reputable exchange platform; look for one with robust security measures, positive user reviews, and comprehensive customer support,” says Wang.

The best crypto exchange for you will depend on your goals. There are specific factors to consider when choosing one, so do your research to find out what works best for you.

Prioritize Security

When you’re getting started with cryptocurrency, security should be a top priority. There are several key security risks with cryptocurrency, including online attacks and unstable projects.

“Like creating a website, anyone can make and distribute a cryptocurrency or NFT,” says Shirin Bucknam, the founder of Crypto Witch Club. “Exchanges can be shut down or collapse. Projects can fail. You can click a nefarious link. The best way to protect yourself is to invest in vetted projects that you believe in.”

Set Up Your Wallet

Another important step of investing in cryptocurrency is setting up your crypto wallet. Unlike the physical wallet that holds your cash and credit cards, your crypto wallet doesn’t hold your crypto. Instead, it holds the private key necessary to access the crypto you own. Your private key is your way of proving you own your coins.

“Move your funds from the exchange of purchase to a compatible web3 wallet ASAP,” says Bucknam. “Your crypto should never sit on an exchange (self-custody is 90% of staying safe in crypto). If your crypto is not in a wallet, you do not own it. The exchange it is sitting on has custody.”

Start Small

When you’re ready to start buying cryptocurrency, you don’t have to jump into the deep end—nor should you, in fact. Instead, the experts we spoke with recommend starting small and allocating just a small portion of your portfolio to cryptocurrency.

“I always recommend that new participants start with the basics, such as purchases of Bitcoin and Ethereum, as they are the two largest and most liquid coins by market capitalization,” says Kim.

When you start buying crypto, Asher of EVE Wealth recommends limiting your investments to 1% to 5% of a diversified portfolio. She puts it in a similar category to venture capital or angel investing—the majority of projects fail, so it’s important to dip your toe in, and when you’re ready to start increasing your investments, spread your money out across multiple cryptocurrencies.

Consider Alternative Investment Options

Buying cryptocurrency isn’t the only way to participate in the rise in popularity of these digital assets. You can gain some exposure to crypto without buying it directly.

First, you can invest in cryptocurrency companies. Plenty of major publicly traded companies are involved in cryptocurrency, either through their own investments, partnerships, and more. There are also public crypto companies, including Coinbase, Block Inc., and Riot Platforms.

Finally, you can invest in cryptocurrency funds, including both mutual funds and exchange-traded funds (ETFs). These funds can provide exposure to cryptocurrency companies, cryptocurrency futures, and more.

Advice for Women Investing in Crypto

Even once you have the basics down, there’s still a lot to know and understand about investing in cryptocurrency. As mentioned, finding a crypto community to help you feel supported may be an piece of your journey.

“The key is finding the right community where you can learn and participate alongside these other women,” says Bucknam. “In addition to community, a great way to combat imposter syndrome is to focus on education first and not be afraid to ask questions. Your community should feel like a safe space amongst friends.”

Next, you want to understand the risks. Given that 22% of women surveyed by Investopedia and REAL SIMPLE who were not invested said it was because they don’t trust the market, and 29% are afraid of losing money, this worth noting: Buying crypto means includes signing up for the risks and potential losses, and increased volatility.

Cryptocurrency has gone through major ups and downs throughout its years of existence, and unlike the stock market, it doesn’t have decades of history to help us assess what’s likely to happen after a downturn. However, downturns are an inevitable part of investing, whether it’s in Bitcoin or the S&P 500. Having resilience to weather the storm is key for achieving positive results

“I’ve always advocated thinking of crypto as a long-term investment rather than a short-term trade,” says Kim.

Finally, continually look for more learning opportunities. New coins are regularly hitting the market and new uses for the underlying decentralized finance technology are constantly arising. Along with these advancements come other opportunities to participate in cryptocurrency and blockchain besides just investing in it.

What percentage of women are into crypto?

A 2023 survey from the Pew Research Center found that about 10% of women have invested in cryptocurrency, compared to 17% of the overall population. Women ages 18-29 invest in cryptocurrency at the highest rates—16% of women in that age range have invested in cryptocurrency compared to just 5% of women 50 and older.

What are some common investment strategies for women interested in crypto?

Many of the same investment strategies you would use in your traditional investment portfolio also translate to cryptocurrency. Many experts recommend using a long-term investment strategy rather than actively trading. Additionally, because of cryptocurrency’s risk level, it’s important to only invest with money you can afford to lose.

How can women ensure the security of their crypto assets?

To ensure the security of your crypto assets, be sure to invest in a reputable cryptocurrency exchange and hold your private keys in a secure wallet. When setting up your accounts, make sure to use strong passwords and two-factor authentication. Finally, be on the lookout for scams, as they’re prevalent in the crypto world.

Is there a recommended book or community website to help me get started?

There’s no shortage of online resources and communities to help you learn about cryptocurrency. In addition to the communities we’ve already listed for women in cryptocurrency and blockchain, there are many other books and communities designed for everyone to learn. The most popular cryptocurrency books on the market include The Bitcoin Standard, The Little Bitcoin Book, and Catching Up to Crypto.

The Bottom Line

Cryptocurrency has been one of the most talked-about investments over the past several years, but it’s still a mystery to many investors. It may feel particularly out of reach for women investors who may feel left out of traditional finance or investing spaces.

The good news is thanks to its decentralized nature, cryptocurrency leaves plenty of opportunities for women to get involved. If you’re curious about getting involved with cryptocurrency, consider joining one of the many online communities devoted to women. Look for online educational resources to help you start your cryptocurrency journey. Finally, remember that cryptocurrency is just one piece of the investing puzzle. Consider how it can support and fit into your diversified investment portfolio.

Fuente