Gen Z urged to navigate cryptocurrency curiosity with caution
Generation Z (people born between 1997 and 2012) are reportedly diving into the world of cryptocurrency like never before, attracted by its fast transactions, borderless nature and resemblance to the gamified environments they know.
Photo: Unsplash/André François McKenzie
Nokukhanya Mntambo, in for 702's Gugs Mhlungu, spoke to Jarryd Jensen, Senior Business Development Manager at Sumsub Africa.
Listen to their conversation in the audio clip below.
Generation Z, or GenZ (people born between 1997 and 2012), is considered the first to grow up entirely in the digital age, surrounded by smartphones, social media, and instant access to information.
They are reportedly diving into the world of cryptocurrency like never before, attracted by its fast transactions, borderless nature and resemblance to the gamified environments they know.
In South Africa, it's said that about 60% of crypto investors are under the age of 35.
"Cryptocurrency is basically just digital money that lives online. Instead of being printed or controlled by a bank, it actually runs on a technology called blockchain. Think of it as a giant online notebook where every transaction is recorded publicly and can't be erased. So it's basically just money you can send instantly anywhere without needing any middleman at all, and because it's so transparent and secure, it feels like the future, especially for the younger generations."
- Jarryd Jensen, Senior Business Development Manager at Sumsub Africa
But this boom comes with serious risks, with scams surging by 48% globally.
Young investors now have to deal with deepfakes, fake endorsements and misinformation on social media.
"They are quick to adopt new platforms, but that doesn't always mean they are financially prepared. A lot of them are getting exposed to crypto through social media. Unfortunately, that's also generally where the scams live. We've seen fake coins supposedly endorsed by celebrities...phishing links disguised as NFT giveaways."
- Jarryd Jensen, Senior Business Development Manager at Sumsub Africa
"...so while Gen Z are curious and open-minded, they are also vulnerable if the right protections aren't in place...proper verifications, and fraud prevention is so critical."
- Jarryd Jensen, Senior Business Development Manager at Sumsub Africa
Despite our country leading in secure onboarding and regulation, including the Financial Sector Conduct Authority's recognition of crypto as a financial product, many still learn about crypto from social media instead of trusted sources, leaving them exposed.
Experts are urging Gen Z to prioritise education, use only regulated platforms, and never invest more than they can afford to lose.
It's important to remember that crypto is not a get-rich-quick scheme but a high-risk investment that demands careful research and verified platforms.
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