How Turning to Crypto Can Help Students Plug Financial Gap
It’s no secret that students live on a budget. According to numerous surveys, every student faces some kind of shortfall every month, while maintenance and other loans available for students fail to cover the growing living expenses.
There are many options that young people use to get extra money. For decades, a part-time job, financial support from parents, and personal savings have been the most popular options. On top of that, students come up with many other ways to finance their lives and studies, including overdrafts, selling possessions, and even gambling. Yet, today, there is a growing trend for investing.
According to Save the Student and BBC, today, a growing number of students turn to crypto to plug their financial gaps. Their number has tripled from only 2% to 6% since last year. You could do that too. Read on, and an expert essay writer from a professional online paper writing service will tell you more about how turning to crypto can change your student life!
What Is a Cryptocurrency?
Cryptocurrency or crypto is a digital payment system that doesn’t use the traditional banking system to verify and process transactions. Instead of using physical money, this system leverages coins that are secured by cryptography and exist purely in a virtual landscape. These coins are stored in digital wallets and can be bought, sold, or exchanged by anyone, all over the world.
Crypto Market Overview
The first cryptocurrency is well-known to each of us. Bitcoin was released in 2009 and became a starting point for the new era of digital currencies. Although there were many disputes and concerns about Bitcoin, it eventually skyrocketed. The cost of this currency has grown by more than 540,000% between 2012 and 2022.
In 2022, cryptocurrencies are no longer something odd or unknown. According to market reports, there are already 9,000+ coins, and 70+ of them can boast a market capitalization exceeding $1 billion.
Crypto is a new big thing in the world of technology and economics. As stated in reports, in 2022, over 300 million people all across the globe already own or use cryptocurrencies. The global market cap for crypto is $1.06 trillion, and it continues to grow rapidly.
Ways Investing in Crypto Can Help Students
Now that you know more about this market, you must be wondering how it can help you plug the financial gap and improve your quality of life.
Basically, there are two ways students can use crypto to get financial benefits.
Crypto for Savings
As was mentioned earlier, personal savings are among the most common ways for students to stay afloat. However, simply storing your savings “under the mattress” is never a wise way to do it.
Crypto offers you a way to secure your money. On top of that, it allows you to multiply your savings without much effort. Crypto investment often assumes holding your assets for a long period. Usually, the longer you hold on to it, the more you can get. A great example of this approach is Bitcoin. At the launch time, the cost per coin was only $0.09, and in 2021, it was over $60,000. So if you invested your savings into Bitcoin and held your assets for 10-or-so years, your savings would grow by over 500%.
For a student living on savings, this means only one thing – storing your savings in crypto will not only secure your money but also help you multiply them without actually doing something.
Crypto for Income
Apart from storing and multiplying your savings passively, crypto also offers you an opportunity to build a good income. Not all investment tactics require holding on to your assets for a long time. In fact, there are many short-term strategies that work on market volatility. Simply put, these strategies imply buying promising assets when they are on the decline and quickly trading them when their prices suddenly go up.
According to market experts, following a wise investment strategy can let you make big money even as a beginner. Nevertheless, it’s worth noting that investments are always associated with certain risks. Therefore, to get the most out of crypto investing, students must first study this matter thoroughly. You need to gather enough knowledge and assess the possible risks to increase your earnings and prevent loss.
Tips for Wise Investing
In the conclusion of this article, we want to help students make a weighted decision before entering the crypto world. Based on surveys, some students claim that turning to crypto was successful for them. Yet, regulators warn young investors about the potential risks.
According to the Financial Conduct Authority, many aspiring crypto investors get into this venture for competition, novelty, and challenge. They want to feel the thrill and, often, don’t think about the future enough. Moreover, as many as 14% of investors confess to borrowing money to invest.
Before turning to crypto, as a student, you must weigh all the pros and cons and assess possible risks. Just ask yourself if you can handle it and recover if something goes wrong. This way, you should be able to start in this matter wisely.