Cryptocurrency Investment Tips & Benefits For College Students
Cryptocurrency Investment Tips & Benefits For College Students
Nowadays, it is an acute issue that young people need a lot of income, mostly passive income, to live a full life.
There are several investment portfolios, including investing in small businesses, buying shares of promising companies, energy giants in the field of clean energy, as well as for cryptocurrencies , futures, debt government bonds, investing in real estate for rent with self-sustaining tenants, and others.
Also, a good income for a student can be scientific activities, writing books, articles, essays for other students, internships, and other scientific work, as it is always relevant and most importantly does not lose its relevance. For example, many students are willing to pay for research papers as they do not have time to cope with their assignments without assistance. After all, an experienced writer is much better at completing academic assignments.
Today we will look at the option of investing in cryptocurrencies for students. It’s a risky asset that can help you make money right now, but there’s also a chance to lose your money the next time the market spikes. We are not urging or forcing anyone to invest, we just provide data based on cold calculations, give examples of diversifying your savings, and talk a little bit about the cryptocurrency market.
Digital currency is gaining in popularity every year. Large online stores and even countries use cryptocurrency as an alternative to regular money and it is possible to make money on it. Now let’s break down how to get it, as well as the main pros and cons.
How to get or buy cryptocurrency?
Instead of buying cryptocurrency, you can “mine” it. True, this requires very powerful equipment, for which you will have to spend a lot of money. Therefore, the industry is very competitive, and most of the market belongs to large companies.
There are several ways to start mining : to buy equipment and do it yourself or to use cloud services and pay a monthly fee for their use.
Due to the high costs, this strategy can be unprofitable for many investors.
2. Cryptocurrency exchanges
Large exchanges like Polonlex, EXMO, Kraken have no problem buying or selling cryptocurrency. There are a lot of players on them, which means demand is high. Keep in mind that exchangers take a commission, but not more than 1% for buying or selling currency.
Do not keep all of your income in an exchange account. There is a risk of its hacking, after which everything will be stolen. It is better to keep them in a special wallet.
This is the same exchange, but now without an intermediary in the form of a broker. You find a person willing to sell the currency and just make the transaction. It is better to use services with a secure transaction, which freezes funds until the buyer receives the currency.
This is the easiest way to buy cryptocurrency. But it has its minus – the commission. If the official rate is $100, then in the exchanger at the time of purchase it can exceed $110.
During the sale, the situation is the opposite: the exchanger buys your currency at a price below the market price, that is, in our case, $90. Such exchange rate manipulations can easily “eat up” all your profit.
Tips for trading cryptocurrency
– Build up your investments gradually. Cryptocurrency is a high-risk investment tool. Gain experience and invest more and more as you go.
– Choose only liquid currencies. The mood of this market can change in a second, so it’s important to be able to sell securities in time.
– Diversify your portfolio and keep the risk of losing all your investments to a minimum.
It is important to think through every step. You must not only maintain your income but also increase it. One wrong decision can lead to lost profits. But don’t pay too much attention to this issue, especially if you don’t have enough time to study. Be careful your fascination with cryptocurrency does not affect your student achievement so that you can improve not only your financial situation but also your educational one.
Benefits of investing in cryptocurrency
– The market is growing rapidly. [Daily trading] volume has been growing for the past 9 years and now stands at $20 billion.
– High returns. This can be considered both a plus and a minus. You can make some profit and lose some money on sharp price changes.
– Low inflation. The stock of virtual assets is limited, sooner or later, the same bitcoins will be bought up, and their inflation will go down to 0.
– Convenience. You can buy or sell cryptocurrency at any time: day or night, weekdays or weekends.
– Variety. There are more than 1,000 types of cryptocurrencies traded in the market. This will allow you to diversify your portfolio according to your strategies and goals.
– Low entry threshold. Currencies are traded in the market with a price of less than one dollar.
– Risks when investing in cryptocurrency
– The main disadvantage of cryptocurrency is that it is not backed by anything but investor demand. You can only predict the price by analyzing the movement of charts.
– Each of the ways of acquiring cryptocurrency has its disadvantages. Mining requires large expenditures on equipment and extensive professional knowledge. When trading on the exchange, there is a possibility of hacking and loss of all funds. Exchangers bite because of the commissions, reaching 20%. And direct exchange is dangerous because of cheating by scammers.
– There is always the possibility of a ban on operations with cryptocurrency. Such measures have already been taken in many major countries: China, Indonesia, and Vietnam.
As a conclusion
All students are always in need of money and free time. It is important to allocate your resources properly. If you feel very tired, but still have a lot of unfinished tasks, ask for help. You can find cheap services on Reddit , where it is easy to hire good assistants.
Be careful when investing in such high-risk instruments. I advise you to allocate some capital to cryptocurrency and just give it a try. And let it be a small amount that you are not afraid to lose. In such things, the main thing to remember is the rule: “The higher the potential return, the higher the potential risks of losing money.
– [How to Financially Survive an Economic Depression]
– [How to hack bitcoin? – How Bitcoin wallet hacking is done]
– [CryptoJacking – The hidden threat that hijacks your computer]
– [Crypto Staking: 7 Profitable Cryptocurrencies for Staking]
– [Bitcoin wallet scam: Never ask someone to create a BITCOIN wallet for you.]