How Crypto Is Growing In Popularity Among Students Hoping To Get Rich Quick
As cryptocurrency continues to take the modern world by storm, more people are learning to leverage this decentralized, digital currency. Students, in particular, are turning to cryptocurrency to help bridge the financial gap caused by rising school expenses. A survey revealed that the number of students investing in cryptocurrencies tripled in 2020. In the same year, the average student debt in the United States reached a record high.
Despite the higher risks, more students are investing in crypto in the hopes of covering the exorbitant costs of college life. In this article, we’ll explore the increasingly common yet complex relationship between crypto and college students.
The Pandemic’s Role In The Surge Of Young Investors
2020 was a tough year financially for most, and students were no exception. To help cover the costs of food, rent, and transportation on top of high tuition costs, students typically work part-time. However, the pandemic forced many restaurants and other businesses that tend to employ students to shut down. Faced with a volatile part-time job market and rising student loans, students needed to quickly find another viable source of an income. For some students, crypto was the solution.
“With a devastating number of small businesses shutting down due to the pandemic, finding part-time employment was impossible for a lot of students,” explains Charlie Hall, a business writer at Researchpapersuk.com. “On the other hand, the lockdown created the ideal condition for people to learn more about investing and profiting off of crypto from the comfort of their home.”
Crypto Offers Students A Chance To Make A Quick Profit
With high risks comes big rewards. This is the lure of cryptocurrency for a lot of investors, especially students who are struggling to finance their studies or pay off their student debt. With plenty of incredible success stories of a millennial or Gen Z buyer leveraging Bitcoin and NFTs to become a millionaire, it’s no wonder more students are turning to crypto for short-term profit.
Crypto Is Extremely Accessible
Investing in cryptocurrency is also easier than ever for a lot of students. All it takes is a few minutes to sign up for an account with an online broker that offers crypto and a student can begin buying digital assets immediately. They can easily monitor their investments from their mobile devices or their computers while watching a lecture or doing readings.
The Influence Of Social Media And Celebrities
Furthermore, the topic of crypto is becoming mainstream on social media platforms such as TikTok and Instagram. These platforms are typically dominated by younger audiences. A rising number of social media influencers are showing up on feeds and recommending crypto as a great way to get rich. Many celebrities are also endorsing various types of crypto that they personally invested in. As a result, more young investors are being swayed to try their hand at cryptocurrency.
A recent study found that over half of Gen Z and millennials seek financial advice through TikTok and Instagram. The same study revealed that out of those who turn to social media platforms for financial advice, 75% listen to a particular social media influencer.
“Despite the convenience of learning about crypto strategies on social media platforms, students should nonetheless do their own research beyond social media,” advises Norman Torres, a project manager at Writinity.com and Draftbeyond.com. “The more extensive their research, the more capable students will be of making well-informed investments.”
Common Ways Students Try To Make Money From Crypto
Some of the most common ways students profit off cryptocurrency are through buy and hold, fast trading, and shorting. As you probably noticed, students tend to prefer short-term investments over long-term ones.
Students Can Now Pay Their Tuition With Crypto
In response to the growing popularity of cryptocurrency among students, many universities and colleges are beginning to accept digital currency as a form of tuition payment. Schools such as the Lucian Blaga University of Sibiu in Romania and the Lucerne University of Applied Sciences and Arts are now accepting bitcoin for student tuition payments.
Conclusion
With an increasing number of students demonstrating an interest in cryptocurrency, it’s more important than ever for young investors to receive accurate information and sound financial advice. While many students are successfully making money off of crypto, there are plenty who have lost a substantial amount by blindly following the advice of strangers on social media. Before you invest in crypto, take the time to do your research. It can mean the difference between financial relief and a heavier financial burden.
About the Author
Jenny Williams is a financial analyst and writer at Lab Report Writing Service and Lucky Assignments. She also writes about personal finance tips and budget-friendly hacks for Gum Essays service blog.