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Do you need Education in Order to Invest in Crypto?

Thursday, 28 Jun 2018, 20:44 IST

Young male tech fans make up more than a third of Bitcoin investors. A recent study shows that college goers have been investing in Bitcoins en masse, with 1 in every 5 students using student loans to buyBitcoin. Despite the trend, no one needs a college education to invest in Bitcoin. Here are reasons why.

Bitcoin is Money

Bitcoin was developed in 2009 as both a payment network and a currency. Think of the payment network as PayPal and the currency as the US dollar. Anyone can own US dollars, and if they know how to invest the money, nothing can stop them. Similar rules apply to Bitcoin. The cryptocurrency was developed to be a decentralized currency not controlled by governments or anyone. Cryptography was used to make the currency secure while digital signatures are used to identify owners.

With simple knowledge of how to purchase and secure the coins, anyone can own Bitcoins. There are many ways to invest in Bitcoins, and some of the ways don’t even require high school education. Some of Bitcoin’s millionaires, including rapper Sean ‘50 Cent’ Curtis, grew up in the streets.

You don’t have to Purchase Bitcoins to Invest

If you have interest in Bitcoins, there are several ways to earn the coins. Mining is one of the easiest ways that do not require any complicated knowledge. To start mining, all you need is a Bitcoin mining machine, a personal computer and the ability to follow simple instructions.

If you have ever purchased any product online, you can purchase the required Bitcoin mining hardware. Most of the products come with instructions on how to set them up. A good Bitcoin miner can earn you Bitcoins worth more than $100 every month for nearly two years.

Your Background does not Matter to Traders

As a cryptocurrency designed to break the boundaries associated with normal currency, there are no limitations of who can or cannot purchase Bitcoins. A majority of Bitcoin investors are very young. Cryptocurrency exchanges that sell Bitcoins never ask for your education background.

Some of the exchanges sell Bitcoins to people from all parts of the world. Sometimes the exchange will ask for your personal information but never your education background. If you want to purchase Bitcoins, simply sign up to any exchange that sells them and follows the instructions given.

Investing in Bitcoin is not complicated

Margin trading might be complicated for some. Engaging in futures is not everyone’s cup of tea. But buying Bitcoins and simply storing them for as long as possible is something anyone can seamlessly manage. Majority of rich Bitcoin investors are not rich because they are highly educated. They simply bought Bitcoins when they had little value and held onto them for years.

With Bitcoin valued at more than $7,700, someone who purchased the coin when it was valued at $700 two years ago now has a profit of 700%. Of course, if you purchased Bitcoin years ago, you are better off than someone investing now. But it's not too late to invest. By now it’s clear that you can invest in Bitcoin with little education. However, making money with Bitcoin takes more than holding the coin in a fancy wallet. There are skills you require to invest in Bitcoin and make money profitably.

Educated investors are more likely to succeed investing in crypto, but that’s only if they have the following skills:

Research Skills

Bitcoin is a volatile currency. Sometimes it will gain 10% in value within one week and then lose 15% value in 24 hours. If you can stay ahead of trends by doing tons of research about the cryptocurrency, you can anticipate Bitcoin’s price movements.

You need to be a good researcher to discover the best cryptocurrency exchanges, the right wallet and the type of news that influence Bitcoin’s value. With proper research, you can avoid panic selling, learn to time the markets and maximize your profits by selling at the right time.

Analytical Skills

It’s one thing to do research; it’s a different thing to use the data you collected to have an edge when making investment decisions. A good Bitcoin investor must learn how to analyze hype from real concerns that may affect a coin’s value.

For the last five years, the hype has been the driving force for most coins’ growth. Investors will often hype a coin even when the underlying technology is not worth it. A smart Bitcoin investor should be able to analyze the information they have to know when the information being spread can impact a change in prices so that they can make the right investment decisions.

Patience

Patience is arguably the most important skill when dealing with Bitcoin. A simple transaction can take up to five hours to go through. Some crypto exchanges will take weeks to verify your account. If you are not patient, you will probably never purchase cryptos.

Crypto markets don’t offer a smooth ride. Prices change fast, and it’s easy to panic and sell at a loss. However, history shows that most of the popular coins always gain value after a crash. To succeed, therefore, you must learn to be patient. Be willing to hold the coins month after month even when you are tempted to sell.

Security Conscious

Atop patience, is the ability to secure coins and to exercise caution when trading is an important skill in the crypto world. More than two million Bitcoins out of the 16.7 Bitcoins in circulations can’t be accounted for.

Most of the coins were lost by traders who used non-existent Bitcoin addresses. Some were lost through hacking or cases of buggy wallets. While no cryptocurrency or exchange offers 100% protection, using the more trusted services and implementing antimalware software on your devices can help reduce the risk of losing coins.

When trading, always double check that you have entered the correct address. Never reveal your passwords and private keys. Make it as hard as possible to become a victim, and you may never lose your coins.

In Conclusion

Investing in Bitcoin is a matter of being smart rather than being educated. Of course, most of the successful traders are educated, but it’s not a requirement to invest. Whether you are a freshman or have little knowledge of finances, you can invest in Bitcoins.

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