A significant number of young crypto traders from Generation Z are increasingly turning to artificial intelligence (AI) to assist them in their trading strategies, resulting in a decreased tendency towards panic selling.
As per a report released on July 24 by MEXC Research, which examined more than 780,000 trading accounts belonging to Gen Z individuals in the second quarter, it was discovered that 67% of users aged between 18 and 27 had utilized at least one AI-powered bot or strategy within the previous 90 days.
Traders who employed AI-driven tools experienced 47% fewer instances of panic selling during times of market turmoil compared to those who traded manually.
An Adaptive Relationship
Generation Z’s interaction with AI is proactive. On average, this group spent 11.4 days per month utilizing AI tools, which is more than twice the usage rate of individuals over the age of 30. Moreover, they were responsible for 60% of all activations of AI bots on the platform.
However, they do not leave the bots running continuously, with 73% activating them during periods of volatility or significant news events and deactivating them during low-volume, sideways markets. Overall, 58% of Gen Z’s AI interactions occurred during times of increased readings on MEXC’s internal volatility index.
This behavior signifies a flexible approach rather than complete automation. Gen Z sets parameters and allows automation to take over when emotions are likely to interfere. They also monitor AI-generated signals 2.4 times more frequently than traditional indicators, indicating a reliance on machine-generated insights in fast-paced markets.
Contrasts Across Generations
Data from MEXC suggests that AI serves as both a risk management tool and a convenience feature. Gen Z traders utilizing bots were 1.9 times less likely to make reactive trades in the initial three minutes of major events, a period identified by MEXC as prone to costly mistakes.
Furthermore, they were 2.4 times more likely to implement structured stop-loss and take-profit rules, demonstrating that automation is used to maintain clear boundaries rather than solely for identifying entry points.
Comparing across generations, millennials tend to rely on thesis-driven approaches that heavily involve charts and reports, using AI as a supplement to pre-established strategies.
Only 22% of millennials and 7% of Generation X reported turning to AI during high-volatility periods, in contrast to Gen Z’s 73%.
Psychologically, millennials seek a sense of continuous manual control, while Gen Z adjusts autonomy based on stress levels, external noise, and attention span, resembling patterns observed in gaming and social media platforms.
MEXC predicts that by 2028, more than 80% of Gen Z traders will rely on AI for comprehensive portfolio management, including dynamic rebalancing and tax automation.
This forecast aligns with broader projections, estimating the AI trading platform market to reach nearly $70 billion by 2034, with a compound annual growth rate (CAGR) of over 20% from 2025 to 2034.
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