Women Outperform Men Trading Crypto On Robinhood
Last Updated on 13 July 2021 by CryptoTips.eu
Last year, I read a highly interesting book called 2030, How Today’s Biggest Trends Will Collide and Reshape the Future of Everything. It forecasted that Africa would be the next growth continent, crypto would go mainstream, the planet’s temperature would rise and that women would take over business boards because of their sheer bigger numbers in society.
One of the persons who has also been seeing this trend is Gretchen Howard, COO of Robinhood, the global trading app that is soon launching for IPO (according to reporting in the Wall Street Journal, 35% of the new shares in the initial public offering are reserved for its own retail customers, which is a groundbreaking revolution in the way IPOs are launched).
Women on trading apps
The number of female Robinhood clients nearly quadrupled between February 2020 and February 2021. This represents a 369% year-over-year increase. Women now represent nearly 30% of Robinhood’s active clients. In addition, 40% of female users negotiate digital assets.
As we informed you a week ago already, the app which got into a rough patch with Reddit’s WallStreetBets forum earlier this year, revealed that it made no less than 34% of its cryptocurrency trading revenue, and some 6% of its total revenue, on Dogecoin trades. In all, some 9.5 million Robinhood customers traded crypto in Q1.
Gretchen Howard said her main goal for 2021 was to continue and “significantly increase” the number of women registered on the Robinhood platform. In view of the figures announced by the broker, this objective has so far been hit.
To achieve her goal, Howard has established a task force, which studies client data to better understand investor behaviour. The group found that women took longer to educate themselves before taking action, or in other words, they made less emotional investment decisions. In essence, women on the platform were generally better traders than men.
In the prospectus filed by Robinhood for its IPO, the broker announced 12.5 million users with funded accounts at the end of 2020, up from 5.1 million in 2019. Therefore, we can assume that more than 3 million women currently trade stocks and digital assets on the financial services company. As fans of Dogecoin would say: Much Wow.