The term cryptocurrency is relatively new in the world of Finance but it has already had a significant impact. Many cryptocurrency platforms use blockchain to manage and record transactions, where multiple entities maintain identical transaction records, making it a secure technology for any investments or transactions. There are many types of cryptocurrencies and this basic knowledge will help students understand what it means to make a purchase or trade.
Teaching students about the benefits and risks involved in dealing with cryptocurrency can help them maintain a healthy level of scepticism and be wary of scams. Students should get involved with crypto and blockchain in the same way that people get involved with anything: by making a decision. First, set up an account and start buying and talking about crypto. Buy a few cryptos to know what it’s like. Know the process of buying so that it can be used for long-term investment purposes. This helps increase your earnings and add some extra money to your wallets.
Pros and cons
Transactions can be made easily, generally at a low cost, and in a relatively private manner across the globe. By using a smartphone with a crypto app, almost anyone can send and receive a variety of cryptocurrencies. Blockchain offers a way for students to make payments without having to go through a bank. This can be especially useful for those who want to study internationally and may face difficulty accessing traditional banking services. Depending on one’s usage, various cryptos are available for investment, and college students can select the best stocks to invest in and secure money. Investment involves holding crypto assets for a long period. There are many easy ways to make money by investing in cryptocurrencies. Having invested in any crypto holdings, one can get his/her money exchanged anytime. The crypto markets work round the clock and give one access to get money back or buy other cryptos.
However, there are also some disadvantages, such as price volatility, high energy consumption for mining activities, and use in criminal activities. The price fluctuations bring profits but can also cause dramatic losses. Next, crypto is not at all eco-friendly. The proof-of-work consensus process, in particular, requires high computing power and stable electricity. Third, it has also attracted all kinds of crime. In the era of globalisation, hackers try to crack wallets on exchanges and steal coins. Often they encrypt victims’ hard drives and demand cryptocurrency payments. The laws and regulations surrounding cryptocurrency can vary and lead to bans in some countries. Profits from crypto may also be subject to tax liability.
In this fast-changing world, cryptocurrencies are no longer jargon, and researching them is not just a pastime for a small group of specialists. Blockchain and cryptocurrencies have the power to change and disrupt economies. Thus institutions, colleges, and students should not overlook such robust technologies that are constantly evolving and growing in popularity across the globe.
The writer is Founder and CEO, HelperWorld
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