Crypto Investing in Your 20s: What To Know First

Ruby Layram 8th Jan 2026 No Comments

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Your 20s represent a unique window for building long-term wealth. With decades ahead before retirement, young investors have time on their side to explore emerging asset classes. Cryptocurrency has captured the attention of millennials and Gen Z, but what should beginners know before getting started?

Why Your 20s Are Ideal for Exploring Crypto

Let’s look at a few reasons why your 20s are an ideal time to explore crypto.

Time Horizon Advantage

Starting in your 20s means you potentially have 40-50 years before the traditional retirement age. This extended timeframe better conditions you to weather market volatility that characterises cryptocurrencies.

Historical data shows that markets can trend upward over longer periods, though past performance never guarantees future results.

Lower Financial Commitments

Many people in their 20s haven’t yet taken on mortgages, dependents, or significant financial obligations. This can create flexibility to allocate a small portion of savings toward higher-risk, higher-potential investments as part of a diversified approach.

Digital Native Generation

Growing up with technology means younger investors probably feel fairly comfortable with digital assets. The borderless nature of cryptocurrencies aligns with how Gen Z and millennials view the world: Connected, international, and digitally driven.

Unlike property investments that tie you to one location with maintenance costs, council taxes, and repair obligations, cryptocurrencies offer potential appreciation without geographical constraints or ongoing upkeep expenses. That’s not to say don’t invest in both. Both have their place in your financial life if your budget allows it.

Also read: How to Buy XRP in 2026

Understanding Bitcoin

What Makes Bitcoin Unique?

Bitcoin (BTC) is the most established cryptocurrency. It has a fixed supply of 21 million coins, with the aim of creating scarcity similar to precious metals. This supply cap differentiates it from traditional currencies that central banks can print indefinitely.

Some young investors may already be thinking about retirement. They could wonder how much Bitcoin might theoretically be needed for retirement. This depends entirely on individual circumstances, but let’s explore the concept.

If someone in their 20s acquired 1 Bitcoin today and held it for 40 years, its value at retirement would depend on a lot of things like whether Bitcoin will achieve mass adoption, and what background economic events are unfurling. But the potential is interesting.

Consider that there are approximately 8 billion people globally but only 21 million Bitcoin. If Bitcoin achieved widespread adoption as a store of value, simple supply-demand economics suggests potential appreciation.

However, this of course isn’t guaranteed, like any traditional asset isn’t guaranteed, but it is worth thinking about. And of course, any asset including crypto, could fall to a value of zero.

There are other cryptos that also hold potential for appreciation over time, like Ethereum, XRP, Solana and others well-known coins that have been around for a while. These have day-to-day uses and the networks they run on could expand in the future.

They could fall out of use and go to zero too, but all investments carry risks, so it is a good idea to do some research and decide whether these networks and cryptocurrencies appeal to you.

Demographics and Digital Assets

In terms of future investments, there are some interesting things happening. The largest intergenerational wealth transfer in history is underway, with an estimated £5.5 trillion expected to pass from baby boomers to younger generations in the UK over the coming 3 decades. Millennials and Gen Z inheritors tend to view assets differently than previous generations.

Research suggests younger inheritors show greater openness to digital assets compared to older demographics, who like traditional assets like property and stocks. That’s not to say younger people don’t want to buy property and shares, but younger people could be more open to buying all three. This demographic shift could drive institutional and retail adoption of cryptocurrencies as capital moves into younger hands with different investment philosophies.

Cryptocurrency Accessibility for Young People

Cryptocurrencies offer some interesting ideas for younger people.

Lower entry barriers (you can invest £10 or £10,000)
24/7 global market access
High liquidity in some assets: Buy or sell instantly
No maintenance costs or tenant management like property
Borderless: Access holdings anywhere with internet

Cryptos can be much less hassle than assets like property. However, the trade-off can be higher volatility. Cryptocurrencies can drop 50-80% during bear markets, or even become worthless, whereas property typically experiences slower, smaller price movements.

Financial educators often suggest limiting higher-risk investments to a percentage you can afford to lose entirely. For cryptocurrencies, this might mean allocating 1-5% of your investment portfolio, depending on your personal circumstances.

Dollar-Cost Averaging (DCA)

Rather than investing a lump sum, young people might prefer to build their assets slowly over time. DCA involves regular purchases regardless of price.

For example, investing a set amount monthly into Bitcoin and Ethereum every month, no matter what the price is doing, is a way to be more measured about buying, despite the highs and lows. This strategy also removes emotional decision-making during market swings.

Major financial institutions increasingly offer cryptocurrency services. This means that cryptocurrencies could reach the mainstream, therefore putting upward pressure on price. Though of course, anything could happen and macro-economic factors like the outbreak of war could crash the price of all assets.

Want to Begin? Start Small

Begin with an amount you’re completely comfortable losing. As you gain confidence and understanding, you can gradually increase exposure. Select FCA-registered cryptocurrency exchanges when buying crypto in the UK.

Realistic Expectations vs. Crypto Hype

What Crypto Probably Won’t Do

Make you wealthy overnight
Replace all traditional currencies immediately
Guarantee returns of any kind
Eliminate the need for diversification

What Crypto Might Offer

Long-term appreciation potential as adoption grows
Portfolio diversification from traditional assets
Exposure to emerging financial technology
Participation in the digital economy’s evolution

Why crypto for young people?

Today’s 20-somethings are more geographically mobile than previous generations. You might work in London, Manchester, Berlin, or remotely from Bali. Traditional investments like property tie you to specific locations and jurisdictions.

Cryptocurrencies travel with you. Your Bitcoin holdings remain accessible whether you’re in Birmingham or Brisbane. For young professionals considering international careers or digital nomad lifestyles, this portability offers unique advantages.

Cryptocurrencies provide exposure to a global asset class uncorrelated with any single nation’s fortunes.

Your 20s offer time to experiment with emerging asset classes like cryptocurrency while maintaining a safety net of traditional investments and savings.

Cryptocurrencies represent genuinely innovative technology with potential to reshape finance. Whether that potential translates to lasting value remains uncertain. What is certain: Young investors have time to ride out volatility and learn about these digital assets while the space matures.

Disclosure

Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more: www.coinjar.com/uk/risk-summary.

Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service.

We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits.

CoinJar’s digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).

Standard Risk Statement

The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies. The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results.

UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor. New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.).

Cryptocurrency is currently not regulated in the UK. It’s vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments. You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you’re unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the  Financial Ombudsman Service (FOS) if something goes wrong.

Remember:

If you use a credit card to buy cryptocurrency, you would be putting borrowed money at a risk of loss. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets.

Note the standard risk warning from the CoinJar website.

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Crypto Investing in Your 20s: What To Know First