Lots of newbies ask this question.

I guess the simple answer to this question is — it's the choice of people + the opportunities crypto offer over stocks or Gold.

In simpler terms for a better Risk Reward Ratio.

There are too many options available to invest our hard earned money. Generally risk averse people choose FDs or if little better then it's Mutual Funds.

People with little more risk appetite go for stock markets and no doubt crypto market. Age definitely matters. As with our age; risk taking capacity decrease.

That's why you will find max number of people (at this stage atleast) who are invested in crypto mostly between (22–34 ). I am not saying this arbitrarily. There were many researchs in the past that suggests this.

As crypto is a comparatively a new market ; there is no price stability & a little news or event can shake the market well. Thats why tweets from Elon Musk can turn the whole market in red. Though it's not true that this manipulation part is absent in stocks. You must have seen that a little statement from Footballer Ronaldo tanked the share price of cocacola within 24 hours. Manipulation is everywhere.

So the bottom line is — it's the risk taking capacity of any person that drives them towards any market.

But sometimes not taking risks is the biggest risks people take. As the whole world is adopting this new type of asset class ; allocating a small percentage of your portfolio ( say 5–7% ) into crypto can be good move. Though it's not a financial advice.