Nowadays, you hear the term crypto everywhere; news, social media, people are talking about it. Especially the Bitcoin is very popular. This makes people wondering if they should invest in crypto as well. As this is a trend, you can have the fear of missing out on it. Furthermore, on social media, you see men in Lamborghini’s, Ferrari’s and huge villas saying they got rich from crypto. And this could make it very tempting to also invest some of your money, especially when you are a student and could really use some extra money. I will tell you all about it; what crypto actually is, if you can make (lots of) money of it as a student, how to invest in crypto, when to and when not to invest, and my own experiences with crypto.
What is crypto?
First things first, what actually is crypto? Simply put, crypto can be defined as all digital coins instead of physical money. Also different from ‘traditional money’, it is not issued by a central authority. The first digital coin and most popular coin as well is Bitcoin. The other coins that came after the bitcoin are called altcoins (Ethereum, Cardano, Ripple, etc.).
How much money will investing in crypto make?
The thing all people are wondering; could you actually get rich quickly? The answer is, unfortunately, probably not. In a very lucky, but also very risky scenario, you would invest a lot at the exact right moment and the cryptocurrency would be very
The thing that makes crypto sound like a dream, is that it sounds like earning money without working for it. Crypto could indeed be a form of passive income, meaning that while you are not working, you still earn money. There are many different ways to earn passive income (online), but investing is an accessible form to start with it.Sounds good! However, it is not as often not as great as it sounds.
Crypto = Gambling
You can read as much as possible about different crypto’s, but the reality is: crypto = gambling. The market is unpredictable. You will need some luck to make money from what you invest in.
Do not take a ‘crypto course’
However, lots of those people did not get rich from crypto (although some really did), but got rich from courses selling on crypto.
When to invest in crypto as a student:
- If you have (extra / lots of) savings
If you have some extra or even lots of savings, investing some of it could be a good opportunity. Because of inflation, your savings are less worth in the future than they are now.
- When you are emotional stable
As is clear by now, the cryptocurrency is very unpredictable and can go in all different directions. It could be that in one week, everything crashes, and the next week, everything goes well again. In the negative scenario, it is best to wait patiently, and in the positive scenario, not to directly invest lots more in it. To conclude, this means you have to be quite emotional stable and not led the currency affect your mood.
- After you have read lots about it (or watched videos, listened to podcasts, etc.)
It is important to have sufficient knowledge before starting with it, so that you know what to expect and understand what you are doing.
- When you know the risk
Okay, in all honesty, it is possible that although you know everything about crypto, but you have bad luck and a crash will make you lose money. Be aware of the possible risks!
When not to invest in crypto as a student
- If you are often short in money
- When you do not have savings
- If you are very emotional
- If you only want to invest ‘to not miss out’
How to invest in crypto?
How much should I invest?
This depends on your savings and how much you will need of those savings in the future. Do not play with money you will need in the future. Start with a small amount of money to see what you think of it and if it is actually something for you to invest.
In which crypto should I invest?
This is a logical question, but I could not give an answer to it. Read about different cryptos and decide in which you would like to invest some money in it. Be careful with the so called shitcoins, which are made to earn money from as quick as possible. They have a weird name and picture and are very low in value (< 0.00001) in the beginning to make them attractive to invest. Do not fall for them!
Buying the dip?
This is something you will frequently hear when you start reading about it and eventually invest in crypto. On the one hand, this could be a smart thing to do, however, it is difficult and unpredictable to see what the actual dip is. You can watch the graphs of the currencies for hours and think you found the ‘best dip’, but it could still decrease in value. Another way to invest is to choose a fixed moment every week, month, year etc. to invest some money in it.
Hearing more and more about crypto both online and offline, I got very curious. I got tempted for months to invest in crypto, but as the market was very unpredictable and going in all different directions, I was not so sure. But eventually, as I got fear of missing out and too curious, I decided to invest some money in it. I had some extra savings as I had worked a lot for my student job in the last few months, and I decided to use some of that. I invested some small amount of money in different cryptos to ‘spread the risk’ and to see what would happen. The first few days, I checked my app (Bitvavo) every hour to see what happened with my money. After a few days, I would only check it once a day, as often not that much happens. At first, it did not go well at all and I saw all my money fade away. But I knew, I had to be patient and after a while, it started to get better again. Now, I am just waiting and I will just see what happens.