Gen Z investors are four times more likely to own crypto than retirement accounts—here’s how financial experts say they should actually invest

However, some of these stealthy social media endorsements are just a smokescreen. Several celebrities have been accused of running “pump-and-dump” scams on their followers: They will rave about a stock online to attract investors and inflate the price, then turn around quickly and sell their shares, tanking the value. Caitlyn Jenner’s $jenner, Iggy Azalea’s $mother, and Jason Derulo’s $Jason were all wrapped up in that accusation. In 2023, the Securities and Exchange Commision (SEC) also filed civil charges against celebrities including Linsday Lohan, Soulja Boy, Lil Yachty, Ne-Yo, and Akon for allegedly illegally hiding their roles in promoting crypto coins.

“It’s a hot topic of conversation,” Rupp says. “It’s become bigger in the news outlets and media, which I think can make it look appealing without knowing what cryptocurrency is.”

Beyond their favorite online personalities promoting the products, experts say crypto is attractive for being liquid and immediate. Gen Z workers in the early stages of their careers may not be prioritizing long-term investments like 401(k)s. Crypto coins can be sold anytime, and have the potential to be lucrative in the short term.

“Oftentimes getting involved in employer-provided retirement plans seems like a long, far-off way to save,” WTW’s Smrecek says. “So they look for something that’s a little bit more liquid that, in case of an emergency, they can access.”

However, that liquidity could also be incredibly dicey. Rupp says there are several risks when it comes to investing in crypto:

• The industry is incredibly unregulated with no governing bodies

• Volatility can lead to quick drops in price

• The product isn’t backed by a currency or central banking system

• There are cybersecurity threats

Plus, the industry is still in its infancy—the first cryptocurrency wasn’t created until 2009. Meanwhile, other “traditional” investments have a long, vetted history for financial experts to work off in making sound choices.

“You’re entering into a realm that a lot of investors are just less familiar with, based on how their parents invested or their grandparents invested,” Rupp says.

Personal finance experts say there’s no one exact investment or savings plan they recommend for Gen Z. But they suggest looking ahead, instead of just focusing on immediate returns.

“Folks who are not participating in their retirement plans provided by their employer, and instead looking for more individual-style investments, are giving up that employer match,” Smrecek says. “We see that as being a detriment to overall financial health.”

Mike Shamrell, vice president of workplace thought leadership at Fidelity Investments, agrees. He tells Fortune that Fidelity recommends 401(k)s as an investing option to clients in order for them to be set up down the line.

“Young investors should consider putting as much money as they can into their 401(k) now—at a minimum, as much as their employer will match—because data shows that slow and steady contributions over time can build up to a significant nest egg by retirement,” Shamrell says.

Aside from retirement plans, experts advise Gen Z to set up emergency savings to draw upon. Young investors should also consider looking into mutual funds and exchange-traded funds; portfolio diversity is important, whether that be a stock fund or bond fund, experts say. There are many ways to slice it, with no one-size-fits-all approach. And when considering investing in crypto, they recommend the curious scrutinize what they’re looking to buy.

“It’s really specific to the investor,” Rupp says. “I would just encourage anybody looking at any kind of alternative investment to really research the history of that product. See how it has ebbed and flowed, and not just focus on those couple of really successful stories.”

This story was originally featured on Fortune.com