Want to get started on cryptocurrency but aren’t sure how? We’ve got some answers for you!
As a university student, managing a proper study-life balance remains a huge priority, amidst the assignment deadlines, vibrant social life, and extracurricular activities. In the current age of the pandemic, extenuating circumstances have worsened the livelihoods of students — restricting our university life to life within 4 walls. The impact of online classes and the Movement Control Order (MCO) has definitely pushed us to try out various things from making TikTok videos to starting our own small businesses. Likewise, many of us are hopping onto the bandwagon of investing in cryptocurrency.
However, it should be noted that one should acquire the knowledge needed before getting into the cryptocurrency industry especially since it involves money. Getting some helpful advice from industry movers is definitely crucial before venturing into cryptocurrency. We’ve asked Nic Chin, a cryptocurrency trader and co-founder of BITTO Exchange to share some helpful pointers on how you can get started in cryptocurrency!
Answer: It’s a digital currency that’s just an advanced form of what we’re already slowly adapting to such as Touch ‘n Go or Maybank2U. These are just numbers shown digitally that are recognised to have value through these 2 companies. Now, the same can be said to give value to cryptocurrency.
Answer: Answer: That crypto is all just in the clouds and that there is no monetary value held in it. Genuine and acknowledged cryptocurrency has value. But unrecognised and unaccounted cryptos do not. So it again falls back to more research and understanding.
Always remember, fundamentals such as business model and utility will always be a better keypoint than just a good gimmick or a candy in the clouds.
Answer: Yes, because many MLM’s disguises themselves as crypto projects when in fact it’s not related to cryptocurrency or blockchain at all. Some projects will even go to the extent of distributing these cryptocurrencies to their members, stating a self-proclaimed price to it, when it doesn’t make sense.
An example would be a project that has 100 billion tokens. The project claims that each token is valued at $1. This would put this company's value at $100 Billion. If you know Robert Kuok, his total net worth is valued at 12.2 Billion. Does it make sense for an anonymous company that has just been around for 2 to 3 years to be worth 5x more than Robert Kuok’s business empire that has been running for more than 50 years?
Answer: Like any form of investment there are risks, and to minimise or mitigate that risk, it’s the same as any other aspect in life — researching and understanding more by learning. Learning isn’t a means to an end but a never-ending process of empowerment of not only your knowledge but also preparedness. Because luck is when preparation meets opportunity.
And in cryptocurrency, it’s an exciting never-ending journey of discovering new utilities and usages of cryptocurrency and blockchain that would translate as a cryptocurrency with potential opportunity to grow.
So, I’d strongly recommend that even if your intention is just a form of interest in investing, do your due diligence even if you’re merely interested to invest. Money is very difficult to earn, and twice as easy to lose. In cryptocurrency, it’s even more so.
Answer: There are a plethora of media out there, such as Cointelegraph. Or Cryptocurrency for Dummies or Bitcoin for Dummies. Google is the mentor that is given to you for free. Take advantage of it.
Answer: Investing in cryptocurrency is easy! Anyone can do it. But, again, make sure you have a realistic expectation.
I personally feel that having a 30% return on investment (ROI) per year is fantastic — anything beyond is a blessing. In many cases, you’ll see those online who invest $100 and expect to get a return of $1 Million in a week or a month. It’s as possible as winning the lottery (read as: super slim chance).
Set the right expectations and have a game plan for your investment. If you had saved 5% of your earnings since the age of 21, you’d end up being a multimillionaire sooner or later. Now, you’re given a great opportunity in this age to have a place to put your earnings which can yield higher earnings than just putting it in a fixed deposit. So, like all things, do your own research, learn, and understand.
A friend I know took 2 years to grow $1000 to $40000 and sadly lost it in a matter of months. Why? She didn’t take time to understand what she was investing in and ended up investing in short-term hyped-up projects that went bust. The moral is to never dive headfirst into something you don’t know.
That’s all for now, we hope you’ve learned a little bit more about investing in cryptocurrency!
Preevena Jayabalan is currently pursuing Cambridge A Levels at Taylor's College. She is also the Vice President of Marketing of the Taylor's Lakeside Model United Nations Club, Co-Lead for the Public Engagement Department of Senate18 and one of the 45 selected fellows for the Felo Parlimen Malaysia program. She's a bibliophile and a strong human rights advocate.
Disclaimer: Taylor's College does not take into account of your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here.
The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Taylor's College.
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