This is a guest post written by Lucy Wyndham.
The news is full of good and bad stories surrounding cryptocurrency. Around the world there are 12,000 Bitcoin transactions per hour, while, the value of Bitcoin increased by more than 1000% in 2017, proof that cryptocurrency is a growing phenomenon which many people trust and rely on to make an income. So, with students knee-high in debt, should they smartly invest in this latest trend to reduce their student debt and make some spare cash?
There are three ways to make money with cryptocurrency. Students may select to simply buy coins to sell on at a later date. To make a profit in this way, the key is to purchase coins at a low price and wait for their value to increase before selling them on. However, the current selling price is fairly high, so it’s likely to be some time before the value increases enough for an investment to be worthwhile.
The second option for students is to accept cryptocurrency payments. Students who run small businesses to make a side income will find that this is a great way of coming into receipt of coins. A third option for students who are computer savvy is to mine their own coins.
The good and the bad
Most recently, a 21 year old college student made ten times his initial investment figure after sinking 80% of his earnings into cryptocurrency investments and, in 2016, a Sophomore student at MIT in Cambridge, Massachusetts made an estimated $20,000 in just four months by cryptocurrency mining.
However, it’s not all good news. Facebook has banned all cryptocurrency advertising over fears of deception and misleading adverts, which has resulted in a drop in the selling price of coins. Cryptocurrency is finding itself increasingly being hit by scams and over $600 million illegal trades have recently been discovered in South Korea.
To invest or not
If you’re a student looking to invest in cryptocurrency, it’s important that you take the time to learn the facts, including the risks, before plunging your finances into any cryptocurrency purchase. This includes researching the topic and ensuring you learn the cryptocurrency terminology, something which you’ll likely never have come across before.
Many people, including students, across the world have made money following sensible cryptocurrency investments. Students looking to follow in their footsteps should ensure they are educated before making the financial risk.