For the last few years, it has been seen that people investing in cryptocurrencies are mostly young. In fact, a majority of them are university students.
The financial help which is offered to students and they need it for their textbooks, education, and the other expenses. Nevertheless, there is a new trend that is doing round among students. As per this trend, college student invests in cryptocurrencies such as Ethereum or Bitcoin.
When students consider how to invest money as a college student, the easiest way out for them is crypto. Studies have shown that about 20% of the students who receive college student money as loans are invested in cryptocurrency.
However, the question that people ask themselves is what is the primary reason behind so many youngsters deciding to take the risk and invest the loan money in a volatile financial market like this?
Investing in Cryptocurrencies are Risky
Albeit, 2017 has been an excellent year in regards to all kinds of virtual currencies like Ethereum, XRP, and Bitcoin, in 2018, Bitcoin had plummeted by 60%. Thus, if any youngster had invested in it drastically, it might have been a bad move for them and might drown them in more debts.
Nevertheless, for different reasons that not everyone will be able to understand, the popularity of investing in cryptocurrency even after being affected is still present.
The real reason young people are enticed by cryptocurrency is the technology that runs these assets. The millennials who attend universities are always open to know about the new technologies for developing new and better opportunities. They have the same idea about this technology which might turn out to be the primary payment methods in the distant future. It is about forgetting debit and credit cards and paying money online. Young people are open to the idea of cryptocurrency and want to spend a large sum of money to earn big money in the future.
However, it should be noted investing in crypto by asking friends and others to please lend you money might not be a good idea. In Canada, the use of financial aid is in the hands of the students. Thus, they can use it for what they want. This becomes possible as the many times they are allowed to take more money from the tuition cost. Nevertheless, even if the money is given out for covering added expenses like projects, books, food, and lodging, they aren’t asked to provide the college with any kind of proof.
Hence, there is no system which will ensure that the excess money is being used by the debtor for covering expenses of the university. Thus, it means that borrowers will be able to spend the money any way have like and several of them have opted for cryptocurrency investment. However, the most important question that they should ask themselves is whether it is worth taking the risk.
Reasons Students are Investing in Cryptocurrency
Cryptocurrency has become really popular among university students. Investing money in this market using a loan or a credit card might be risky. The only reason is that it is a volatile market.
Nevertheless, youngsters prefer investing in crypto than another asset, and if you consider the growth which cryptocurrency experienced in 2017, the practice might have also helped them to earn some money.
However, before you invest in them, you should see if your peer has invested in them and how many of them have actually benefited from it. Keep in mind that this currency experiences a drastic decrease and increase in price.
Tips to Invest in Cryptocurrency
Before students begin with cryptocurrency investment, here are a few tips that they can follow.
- It is important to know and understand the details of cryptocurrency. Find out what they are and how they are going to become in the near future. This way you will know what you are getting yourself into and will also be able to explain to others what you have invested in.
- It is necessary to compute what is the amount of savings you have and see whether 10% of it about $100. Since it involves high risk, it is better to invest only 10% of your saving on it. This way even if you lose 50% to 90% of the money you invested, you are going to be okay.
- You get cryptocurrency either online for from someone. Getting them over the internet, it is a better option. For this, you need to create an account and get yourself verified. After this, you can choose the payment options that are available on the site.
- There is no official price of these. For example, in the case of Bitcoin, the price is set by the amount that people would like to pay for it. The price of it shown as the cost of one coin. Nevertheless, you can buy any amount you want.
If you consider the right time to buy cryptocurrency, you should know that nothing can be said for sure. These are generally seen to increase in value at a rapid pace which is followed by a steady and slow downfall till it stabilizes. It is global and is not affected by any particular country’s stability or financial situation. The difficulty you face while purchasing them will generally depend on your country. Developed countries like Canada have more liquidity and more options.