Should GenZ Jump Into Crypto?

Money is changing, and Gen Z is right in the middle of the revolution. While older generations saved in gold or real estate, today’s youth are seeing people turn small amounts into thousands overnight with Bitcoin or Ethereum. The big question is: is crypto the opportunity of our generation, or just a dangerous gamble?

Crypto is attractive because it feels futuristic, easy to access, and has the potential for big wins. You don’t need brokers or paperwork, just an app and internet. Stories of coins multiplying in value make it even more tempting.

But the risks are just as real. Prices can swing wildly in hours, scams and “get-rich-quick” schemes are everywhere, and there’s no safety net if you lose your money or private keys. Unlike banks, no one is there to protect you.

So, what’s the smart approach? Start small and only invest what you can afford to lose. Don’t put all your savings into crypto, diversify with safer options like stocks or savings. And most importantly, learn before you leap. Follow credible experts, not hype-driven influencers, and focus on the long-term potential rather than chasing quick jackpots.

Should You Invest? A Gen Z Game Plan

Crypto may feel like a vibe, but it’s definitely not for everyone. The key is knowing how much risk you can handle and how to play it smart.

First, follow the golden 5% rule , don’t put more than 5% of your savings into crypto. If you have Rs. 100,000, invest only Rs. 5,000 and keep the rest in safer bets like mutual funds or HBL’s 7% savings accounts. If volatility stresses you out, start with stablecoins like USDT, which are pegged to the dollar and won’t keep you up at night.

Always use reputable platforms like Binance or Coinbase, secured with 2FA and biometrics. Stay away from shady local exchanges you see hyped on WhatsApp. Just as importantly, educate yourself: follow #CryptoPakistan on X for local insights, or watch reliable channels like Coin Bureau. Never YOLO into memecoins just because a TikTok video says so.

If you want to diversify within crypto, mix Bitcoin (digital gold), Ethereum (smart contracts), and maybe a smaller player like Solana. But never go all-in on one coin. And don’t forget the tax angle, in Pakistan, the FBR treats crypto gains as capital gains (15–20%), so track your trades or risk nasty surprises later.

Why Local Context Matters

Pakistan’s economy is volatile , inflation around 15%, a shaky rupee, and nearly 30% of Gen Z freelancing globally. Crypto can act as a hedge, but it’s not the only game in town. Stocks like Engro delivered 12% in 2024, and HBL’s mutual funds clocked 10–14%. Both are far safer than crypto’s rollercoaster.

Crypto also has a remittance angle: freelancers and families receiving dollars often park funds in USDT to avoid rupee depreciation, then cash out when PKR strengthens. But beware the cultural FOMO , social media often hypes crypto as “the future.” A smart investor waits for dips, not pumps.

Should Gen Z in Pakistan invest in crypto? Maybe, but only if you’re ready to play smart. It’s a high-risk, high-reward game, perfect for your hustle energy but dangerous if you’re reckless. Start small (5% of savings), stick to stablecoins or top coins like BTC/ETH, and use regulated platforms.