SHOULD I INVEST IN CRYPTOCURRENCY AS A STUDENT?
Cryptocurrency, usually called the “crypto”, is a digital asset. This digital assessment enables you to buy, sell or trade without the need of a bank. Cryptocurrency is based on blockchain technology and it is also secured by cryptography.
In simple terms, cryptocurrency is a coin or digital currency designed to be used as a medium of exchange through a network of computers. It does not need any central authority like the bank or government to uphold it.
Cryptocurrency cannot be accessed in physical form like paper money. It only exists online. They help in the authentication and protection of transactions. The first cryptocurrency that was released is Bitcoin in 2009. Afterward, there have been several creations of cryptocurrencies. Examples are Litecoin, Ripple, and Ethereum.
IS CRYPTOCURRENCY WORTH INVESTING?
Being a student is not so easy. Combining classes, assignments social life, and monitoring a crypto market account can be stressful. Nonetheless, if you’re able to manage your time well ( have time for all activities including monitoring a crypto market), cryptocurrency may do you some good.
Before you eventually invest your money into cryptocurrency you must know that that investment is in no way like a real estate investment.
The cryptocurrency market is ephemeral. This means that it is temporal, yet it is a large market. There are many risks involved. However, the bigger the risk, the higher the reward. If you decide to invest in cryptocurrency, you need to take note of certain things.
Below are some tips to guide you.
1. Do not invest too much of what you cannot afford to lose. As a student, you will need money to purchase other essential materials. When you invest all your money in a market that is ephemeral, you will end up living a life full of regrets.
2. Also, do not invest all your money into a single coin. Periodically, invest a specific amount of money into different coins since you don’t know what may happen. When you do so, it helps you to still benefit when other coins in the market are on the rise.
3. Additionally, you must invest wisely. Avoid being too emotional. Just use your head and not your heart. Know that your money can vanish in a twinkle of an eye. That is why It is advisable to invest only what you can afford to lose as a beginner.
4. Moreover, know when and how to buy coins in order to gain profit. Don’t let what you have stop you from increasing your gains.
5. Importantly, know that there are risks involved. Take a firm decision after a thorough study of cryptocurrency and the coins they offer. Look at the fees involved in every trade or transaction.
THE BOTTOM LINE
There are so many students out there making a lot of money from cryptocurrency. You can also be a part of it. Nonetheless, be sure to consider the above tips as well as how volatile the market is.
Do proper research and understand the pros and cons of cryptocurrencies. If you finally make a bold and firm decision to invest in it, make sure you do not invest with what you cannot afford to lose.