It is interesting to note that recent investors in cryptocurrencies like the Bitcoin have been mostly the younger generation. And, a large chunk of this population has been students in universities and colleges. Students are entitled to loans with which they have to pay for their tuitions, text books, and other ancillary expenses. But, you will find a new trend amongst the student population, and that is investments in crypto coins like the Bitcoin and Ethereum. How safe is that when you are a student?
If students are looking for ways to invest, then cryptocurrency seems to be the easiest bet. According to reports, almost 20% of students receiving college funds as loan have been investing in cryptocurrencies. It is important to first understand why these youngsters are willing to take the plunge knowing about the risks involved. Although 2017 had been an exciting year for most crypt coins like the XRP, Bitcoin, and Ether, the following year saw the Bitcoin take a fall by almost 60%. So, for people who have invested in it, this was a huge setback and landed them in serious debt.
What is strange to note is that in spite of the volatility of the cryptocurrency market, the charm has not faded and people have not given up investing in the Bitcoin. The main reason for this is that people are completely awestruck by the blockchain technology, though it is a disruptive one. Millennials attending colleges are open to new ideas and new opportunities; they realize that this technology can well become the next big thing in the financial world. They feel that cryptocurrencies will eventually emerge as an alternative payment method.
As a student however it is not wise to ask your friends about investing in cryptocurrencies. Neither should you borrow money from them to start investing. This can be a serious issue in Canada, for instance, where the aid for students is in their hands for using as they deem fit. Even if the funds provided are more than enough to take care of all student expenses, they are never asked to provide proof for how they spent the rest of the money. So, there is really no system to ensure that the extra money is not being used for cryptocurrency investments. That is why the student needs to ask himself if this is indeed a worthwhile investment.
Before investing in cryptocurrencies like the Bitcoin, it is necessary to understand how cryptocurrencies work and what the future holds for them. This ensures you know exactly what the risks are. It is also advisable only to invest in small amounts, like 10% of your savings. Anything beyond this is risky, because you may not be able to afford to lose the amount that you actually end up losing.
For students, it is better to get crypto coins online. For this, you need to create an account on a cryptocurrency exchange like Bitcoin Trader and get this verified. You may then select the payment option you prefer from the options provided on the site. You have to remember that you can never be sure of where the prices will be in a few months. Prices are not affected by any financial situation or the country’s political milieu. So, Bitcoin is an unusual way of investing for college-goers; it may make you familiar with the whole idea of investments, but it comes with a hefty price.