Millennials were early adopters of cryptocurrency, notably driving the first Bitcoin (CRYPTO: BTC) boom in 2017. Since then, the crypto market has grown significantly, rising from less than $100 billion to over $2 trillion. Let’s take a look at what millennial investors have been doing with their crypto portfolios to see what strategies they’re using.
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Stablecoins (cryptocurrencies designed to remain pegged to another asset) have grown in popularity, especially with last year’s passage of the Genius Act, a federal law that provides a regulatory framework for stablecoins. Last July, 27% of Americans said they’ve already made purchases or investments with stablecoins, according to research by The Motley Fool.
The rate was higher among millennials, with 34% reporting using a stablecoin. Unlike other cryptocurrencies people buy as investments, stablecoins work well as fast digital payment methods because they maintain a fixed value. Millennials have shown they’re open to adopting stablecoins, and 60% said they’d use stablecoins for their typical shopping.
Millennials are more likely to invest in cryptocurrency and have more crypto-heavy portfolios, according to Coinbase Global‘s (NASDAQ: COIN) State of Crypto Q4 2025 report. It found that 45% of younger investors, a group that includes Gen Z and millennials, currently owned crypto, compared to 18% of older investors.
Younger investors also say they allocate 25% of their portfolios to non-traditional assets, including crypto, crypto ETFs, non-fungible tokens (NFTs), derivatives, and leveraged ETFs. That’s over three times as much as older investors, who have 8% of their portfolios in non-traditional assets.
Younger investors can afford to take on more risk, since they have plenty of time until retirement. However, 25% of your portfolio is a substantial amount to put in non-traditional assets. A more modest allocation, 5% to 10% at most, is much safer.
Bitcoin, the original cryptocurrency of choice for millennials, is still the most popular coin by an overwhelming margin. With a $1.5 trillion market cap as of March 4, it makes up nearly 60% of the crypto market.
