Cryptocurrencies: What students should know

PLEASE NOTE: This article is based on current info as well as interviews with those currently invested in cryptocurrencies. This is by no means meant as financial advice or guaranteed to be without flaw in information since the system is quickly and continuously evolving.

Cryptocurrencies are taking the world by storm and making people millions of dollars, but many still consider this a superficial currency. Cryptocurrencies are digital forms of currencies that people can buy and trade, and sometimes referenced as crypto. Although mysterious, cryptocurrency is a respected new form of currency that will play a big role in the future that will improve the speed and security of transactions. It is considered to be the future of mainstream currency if not already so.

Cryptocurrencies are universal currencies meaning they are able to be traded between multiple different counties (Source:

Disclaimer (Crypto currencies cannot be owned by anyone under the age of 18).

ICO or initial coin offerings are somewhere where people can invest in upcoming cryptocurrencies and if the crypto becomes popular, the investors make a substantial amount of money. Although ICOs have been a process utilized to make a money quickly, they are quite unreliable because if the crypto company fails then you lose all of your hard earned money. There is a safe alternative: crypto trading platforms allow you to buy crypto that is already successful. This way your money is in more secure hands. Some examples of crypto trading platforms are Coinbase, Robinhood, Etoro, Coinmania, BlockFi, Bisq.

Bitcoin is currently the most expensive cryptocurrency, it is currently priced at $48,988.70 as of Mar 5, 2021 (

What kinds of cryptocurrencies are there?

There are two kinds of currency: Altcoins and tokens. Altcoins or alternative cryptocurrency coins are any crypto that is not Bitcoin such as: Peercoin, Litecoin, Dogecoin, Auroracoin, Namecoin, Ethereum, Ripple, Omni, Nxt, Waves, Counterparty.

The encryption that protects your money and transactions of money is called tokens, some examples of tokens would be: Value tokens, Security tokens, Utility tokens.

Although there are several types of crypto, each type is worth a significant value. With every type of crypto, there is a substantial amount of money that can be potentially made currently, and like every high schooler working fast food, isn’t doesn’t seem enough for some.

The current form of the us dollar is unhygienic and crypto can’t transfer germs. (

Cryptocurrencies should be taken seriously, especially by students, because crypto is the future and there is serious money to be had in the field of cryptocurrencies. What seems like something almost surreal, many experts predict that this type of currency will play a leading role in the future of finances. There is ways to pay for tuition with cryptocurrencies which is extremely useful for the upcoming college students in high school right now.

There is something called an nft or non fundable token it is basically a collectors item that can be made by celebrities’ and then sold by them for a lot of money. (

Are cryptocurrencies worth real money?

Cryptocurrencies carry real value, and most of them are more valuable than the US Dollar. Banks or the government can release a stable coin which is equal to us dollars in digital form. Transactions that take place with cryptocurrencies are processed instantly whereas USD processed through our banks can take several days. This lends it to be a more efficient currency. Cryptocurrencies will be a way we can more securely transfer money because the coding behind the money is so intense that it is impossible to hack the system.

Is it safe to invest when I’m old enough? What should I know?

A smart investment would be investing only 1% of your wealth because, as with the stockmarket, there are no guarantees of secure investments. If your investment fails, then you won’t potentially lose much money and if the investment is a success you will gain more money you can re-invest as it grows (remember this is not financial advice just a source of info as we understand it currently). Buying cryptocurrencies with credit can be tricky because some forms of crypto don’t accept credit.

Even the people that are involved with cryptocurrencies don’t know everything about them. (

The US Government does tax cryptocurrencies

Cryptocurrencies will be taxed by the government by the IRS. They are considered as capital assets like stocks and not currency. This will be helpful to know as this currency continues to grow in prevalent use.

Final thoughts

Cryptocurrencies are not a game and should be taken seriously. As of today, many have been very lucrative with it, though others have lost a substantial amount of money. German-born programmer, Stefan Thomas, made headlines when he lost access of his Bitcoin account valued at $220 million dollars because he forgot his password to his account. This is definitely something to continue studying and pursuing in our futures with personal finances.

The more educated students are on cryptocurrencies and prepared for the future, the more successful and prepared they are going to be.

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