5 Reasons Students Should Invest in Cryptocurrency
Cryptocurrency has emerged as an alternative to the traditional means of exchange such as credit cards and cash. Cryptocurrencies are not seen as targets by terrorists, criminals, and fraudsters as in the case of credit cards and cash.
Today, students have come to recognize cryptocurrency and an investment opportunity owing to the financial gain they can get at an early age. Some don’t trust the traditional transactional systems and so they are excited about the emergence of crypto.
It is long-term
People are turning to cryptocurrency investments for long-term gains. Bitcoin has gained popularity since its inception and has been volatile since the year 2019. The dramatic fall of Bitcoin in 2019 could have been so discouraging for short-term investors.
Anyone who held their investments got some good returns after some time. According to experts, the value of Bitcoin is expected to increase far beyond the $50,000 mark. Cryptocurrencies offer a great value proposition because they can allow investors to invest in bits and make profits.
Cryptocurrency is a good investment option for students because they may not have a lot of money to invest at once. They can invest small amounts based on their capabilities and enjoy tangible benefits in the long term.
Under the traditional systems, the history of transactions can act as a reference point for the credit agencies or banks involved, every time a transaction is made. This may include unauthorized people checking account balances. Complex business transactions may require a detailed examination of the financial history of account holders.
Every transaction involving cryptocurrency represents a unique interaction between the parties involved. The information exchange is based on a “push” approach whereby investors can send exactly what they wish to send and nothing besides it. Students, just like other investors, want the privacy of their financial history safeguarded and protection against the risk of identity theft.
Flexibility and independence
One can sell, buy or liquidate their investments at any time. More importantly, there is no need to worry about transaction fees from the bank. Cryptocurrency is independent and no country can control the financial flows of this digital currency. Students are in full control of how much to invest in cryptocurrency and at what time.
Students in college can allocate funds to crypto investment and put aside a portion of it to meet their academic needs. You can order research paper here on Edubirdie and create some time to do other classwork or study for exams. The services from professional writers are affordable even if you are operating on a small budget. Students invest in cryptocurrency based on the availability of funds and can ensure the continuity of their academic work even if they lack the necessary writing skills.
Cryptocurrency is ideal for students who wish to diversify their investment portfolios. Different digital coins are available, each with profit potential. Students can choose, say, 5-10 popular coins and split their investments across various crypto wallets. This can enable them to earn money and minimize investment risks that may be associated with price fluctuations.
Due to the decentralization nature of cryptocurrencies, digital assets are not highly influenced by inflation. They are not under any financial banks or government regulation and this helps to eliminate bottlenecks that characterize a typical banking system. Cryptos are immune to the risks that arise as a result of fluctuations in prices.
Banks impose hefty charges related to transferring funds, withdrawing funds, writing checks, and so on. The fees may take up a portion of assets especially if there are many transactions involved.
In cryptocurrencies, data miners, including separate and remote computer systems generates the cryptocurrencies. The data miners are compensated from the network of the cryptocurrency, thereby eliminating transaction fees.
Some external fees may apply when the services of a third party are involved in the maintenance of a cryptocurrency wallet. The charges may be far much less compared to what is incurred under the traditional financial systems. It is better for students to invest in cryptocurrency because they can save on the transaction fees and therefore increase their returns on investments in the long run.
Individuals and institutional investors have started to accept the legitimacy of cryptocurrency. Students should not be left behind because they can learn about the benefits of long-term investments and enjoy the practical applications of this. Cryptocurrency transactions are confidential, risk is minimal and it is more economical to invest in cryptocurrency since transaction fees don’t apply. Students should conduct due diligence to gain insights into the best digital assets to invest in.
Alina Boskar works for a publishing startup as an author and editor and has previously worked with a digital agency as a content marketer and blogger. On the side, she works as a freelancer for a writing site that provides essay help to school and college students. Other than writing, he loves watching anime, reading suspense novels and swimming.
Neironix is not responsible for the safety of your funds and does not provide investment advice.