There are very few students out there who give investing in any shape or form much thought. Most students are too busy having a good time while also trying to pass the next semester. The problem with this type of thinking is that it is very nearsighted.
College does not last forever and although it is a time that should be enjoyed to the fullest, careful thought about the near future also needs to get its fair share of attention. Cryptocurrency is one of the most talked-about investments of recent years and if you think about where Bitcoin started and where it is now, it deserves the talk.
The question remains as to whether students should invest in Bitcoin or not?
Why The Timing is Right
As a student, there are a couple of things that count in your favor. For one, there is not nearly as much responsibility that rests on your shoulders than when you exit college. In the greater scheme of things, there is much less risk involved and even when you make a bad investment, there is time to make it right.
When it comes to Bitcoin and other cryptocurrencies, its volatility has subsided and the financial world is not seeing it as a fad or a gimmick anymore. It has value and it is starting to surge. Getting in the game earlier rather than later will mean a bigger payout in the end.
Getting a handle on the basics
Cryptocurrencies are complicated and getting into the game is easier said than done. Gaining a firm understanding of crypto is one of the biggest student investments you can make.
It ranks right up there with completing academic assignments when you are facing deadline issues or simply lack the motivation to write. In this case, you need assignments by writix.co.uk, which is a top-ranked writing service for school and college students. You save yourself a load of headaches and questions and you will have the confidence to take on the investment world.
There is no one guide for students who want to learn about crypto, but the one thing that you should do is to start. To free up some time to delve into the world of crypto, use an academic writer to do your schoolwork while you work on your future return on investment.
Knowing which crypto to invest in
Understanding cryptocurrency basics is essential if you want to make a success out of your investment. The one thing that many people are very wary of is that there are suddenly hundreds of cryptocurrencies available, all vying for their share of the market. You could argue that Bitcoin is too expensive at the moment and that Etherium is too risky, but that is the nature of any new venture.
There is a significant amount of risk involved in investing in crypto and you should do your homework well before deciding on a currency to invest in.
It Is Not Just Short Term
Investing in cryptocurrencies used to be perfect for day traders and the average investor, but things have changed. More and more people are turning to cryptocurrencies for long-term investments. If one looks at the history of Bitcoin, it ballooned in 2019 and fell dramatically when that balloon popped.
If you were to jump ship at the time, you would have lost big time. However, for those who held on to their investments, the gamble paid off. Bitcoin recently surged to levels past $50 000 and experts are saying that it could reach even higher.
The biggest problem with cryptocurrencies is not that it is so volatile. The fact that it is a digital currency that is traded online makes it a prime target for internet fraudsters and hackers. If someone gets their hands on your account and steals your currencies, there is not much you can do.
Hacking is a big threat to cryptocurrencies because the trade in cryptos occurs online. Crypto investors are required to use non-traditional custodians who do not have the security track records as those of traditional custodians like Fidelity and Vanguard. If you put all your money into one account, you could land up losing everything in the process.
Invest What You Have
Students are often impulsive and will make rash decisions like take out loans to invest in crypto. In most cases, they are inexperienced and when someone is good enough at selling them something, they will jump headfirst into the fire. With crypto, it is no different and students need to be mindful of the risks involved.
Study debt is no joke, but when you add a personal loan on top of that, it could get even worse. Crypto is not a get-rich-quick scheme. It should be well-researched before climbing in and then it should only be done with money you already have.
If ever there was a time to invest in crypto, it is now. The financial world is starting to accept its legitimacy and it is gaining speed. However, as a student, it would be wise to do your due diligence to have a better idea of what they can expect and what they need to do and avoid.
Judy Nelson works for a marketing agency as the lead PR and online marketing consultant and helps new brands gain ground in the market. She has some great writing skills as well and freelances as a management and technology writer for a leading essay writing service. In her free time, she loves finance magazines, volunteers for social causes, and plays board games.