College Students Are Investing in Cryptocurrency – Is It Good or Bad?

College Students Are Investing in Cryptocurrency – Is It Good or Bad?

Earlier, the trend was to shield school and college students from the rigors of mundane life. But that thinking has changed now. The Millennial students of today get exposed to a lot of new things outside their curriculum as well. And this happens while they are studying.

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This helps them to pick up skills and gain knowledge. They are also able to expand their mental horizons even while they are students. They don’t need to finish college to learn about things outside the curriculum.

The Importance of Learning to Invest

One of the most important skills that a student would need later in life is the management of finances. A student usually manages his or her monthly budget himself or herself. This is done by walking a tight rope between the various expenses. Still, a student should also learn about investing the available money to make it grow. There are two advantages here.

  • First, a college student would not usually have the responsibility of running a household. So, he or she can afford to fail a few times.
  • Second, starting financial investments at that early age would help him to grow the amount to a larger corpus within a few years.

The Craze for Technology

The millennial of today takes pride in being considered a nerd. The latest technological advancements are a source of amazement and joy for a typical student. This is the reason why instead of betting in horse racing, for example, the new endeavours are more likely to be based on technology. The world of cryptocurrency is one such arena of attraction. It is run using blockchain technology which provides a secure and decentralized way for an investor to grow his or her funds.

Cryptocurrency – Where Technology and Finance Meet

For the last couple of years, cryptocurrency has captured the imagination of people across the world. 2017 saw cryptocurrency values zoom into the stratosphere. Several people make unheard of sums of money. However, the very next year saw the value of most cryptocurrency fall by as much as 60%. Despite these ups and downs, the interest in cryptocurrency refuses to die down. For young college students, it remains a source of attraction.

There are innumerable disaster stories here. We hear of students drawing money from their monthly rations and investing in cryptocurrency. When they make money on these investments, no questions are likely to be asked. But if the investment falls flat on its face, then parents might not be amused. This has raised questions about whether college students should invest in cryptocurrency or not. Let us give you our opinions for and against and leave it to you to decide.

Why College Students Should Invest in Cryptocurrency?

Let us find the reason with the below-mentioned benefits:

  1. Cryptocurrency is safe and secure. So, whether it is an experienced investor or a college student, there is no risk of cyber robbery.
  2. Unlike the share market, students would not need to spend a lot of time on research.
  3. College students are most likely to be comfortable with technology. Cryptocurrency is not just about finance, but an investment with the underpinning of technology.

That is why a college student is likely to feel comfortable with cryptocurrency.

Why College Students Shouldn’t Invest in Cryptocurrency?

If a college student can save small amounts of money from his or her monthly expenses, then it is a great idea. This amount can be used for investment in cryptocurrency.

Nevertheless, in one scenario we would discourage college students from investing in cryptocurrency. That is when they ignore their basic expenses and instead use that money to invest. Also, it is not suggested to students to use loans to invest in cryptocurrency, since they can get drowned into debts.

A student can avoid dipping into his necessary expenses for investing in cryptocurrency. If the investment is done from accumulated savings, then a college student should invest small amount of money in cryptocurrency just to understand the new technology and experience the risks and profits with minimal investment.