Should I Invest in Cryptocurrency as a Student?

As a student is it wise to invest in Cryptocurrency? Student life is a complex one and having to combine classes, assignments, social life and monitoring the crypto market can be tasking.

To start with, what is Cryptocurrency?

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

Created in 2009, Bitcoin was the first cryptocurrency to be created. The potential to make quick and easy money with cryptocurrencies has appealed to a lot of students. The digital currency has gained popularity among millennials compared to traditional currencies.

The two most popular cryptocurrencies are Bitcoin and Ethereum. These two have wide acceptability and has also been integrated with many forms of generic transactions which have been recognized by most countries.


How Does Cryptocurrency Work?

Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.

Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.

If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.

Examples of Cryptocurrency

There are thousands of cryptocurrencies. Some of the best-known cryptocurrencies include:


Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.


Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.


This currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.


Founded in 2012, Ripple is a distributed ledger system. Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions.

Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.

Should I Invest in Cryptocurrency as a Student?

As a student, before dumping your money in Crypto, you need to know that investing in cryptocurrency is not like investing in real estate.

The cryptocurrency market is a large market and very volatile which makes it so special. Bigger risks lead to bigger rewards. However, bigger risks can also lead to big losses. I have seen many cryptocurrencies including Bitcoin crash multiple times. As a student, what will be your state of mind if suddenly, your $500 worth of Bitcoin drops to $150.

However, if you choose to invest in cryptocurrency, you need to do so with your brains and not your heart. Below are some helpful tips for students who decide to delve into the world of the unknown.

1. Don’t Invest What You Can’t Write Off

When it comes to cryptocurrency, it is advisable to invest ONLY what you can afford to lose. As a student, you need money for essential products like food, clothing, and rent. Putting all your money in a market that is based on pure speculation could lead to serious damage.

2. Stagger Your Investments

It is foolishness to dump all your money in a single coin. Invest a certain amount periodically on different coins as you do not know which one will take a dip. Staggering your purchases means you can benefit from certain coins when the market is on the rise. Imagine using all your money to buy one coin and within a twinkle of an eye, the market takes a dive.

3. Use Your Head NOT Your Heart

To stay afloat in the crypto market, you don’t need to be emotional when it comes to investing. ANY investment no matter the speculation can go bad. I know it’s hard to see your money vanish, but take your mind off it.

You will always have the feeling of monitoring your Bitcoin or Ethereum every second. Doing so will seriously affect your mind. Remember the market is volatile, they can crash and go up at the same time.

To feel less emotional about your crypto investment, it is advisable to invest ONLY what you can afford to lose.

4. Don’t Be Too Greedy

Believe me, one reason why you could lose a large chunk of your money in cryptocurrency is GREED. Know when it’s best to sell or buy your coins for profit. Start with smaller percentage profits and then slowly increase it to a level that you are comfortable risking with. Because a coin goes up today does not mean it won’t come down tomorrow.

5. Learn About the Market

There are so many crypto brokerages and wallet providers and so you have many options to choose from. Take your time to know the types of cryptocurrency coins that they offer. Look at the gas fees they charge for depositing/withdrawing fiat money as well as the fees charged on every trade you make.

Importantly, you can either become a day trader or a long term investor. A day trader is an investor who buys and sells bitcoin on a daily basis. Thes group of investors have a higher principle investment, thus a small percentage increase can add huge value to their accounts. On the other hand, a long term investor is one who buys and hold a coin for a longer time.

You can also be a combination of both groups of investors, but there is always one side you can do more. As a student due to time constraints, I will advise you to tilt more to becoming a long term investor, with a bit of day trading.


Although there is the prospect of making quick and easy money with cryptocurrency, you also need to consider the volatility of the market. Importantly, invest what you can afford to lose and do not be emotional about it. I also advise you do proper research before deciding to invest in cryptocurrency.

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