Demystifying Digital Investments for Students

  • Canarian Weekly
  • 23-11-2023
  • Business
  • Photo Credit: Unsplash
Demystifying Digital Investments for Students

Stocks, cryptocurrencies, bonds, trading - these and other related topics have always caused a lot of buzz. People of all ages and social statuses take an interest in these topics for many reasons, and students are also among them.

Living on a shoestring budget, young people are always looking for effective ways to make money for a living. They need a steady income to use professional “Write my report for me” services and keep their grades high.

Faced with such a demanding schedule, many of these students also turn to solutions like “get online assignment help” to manage their overwhelming academic workload. Also, they need money to cover tuition and fees, living costs, and still have something left for personal expenses. The problem is that they can’t secure a stable income through a conventional job because a hefty academic load takes up nearly 100% of their time.

On the one hand, digital investment could become an excellent solution to this problem. Nevertheless, there are plenty of myths and misconceptions that hold students back from delving into it. In this article, we are going to demystify this topic and help you understand whether this is a good option for you or not.

In a nutshell, digital investment is a form of investing (buying and selling financial assets) that takes place on digital platforms or with the help of technology. It enables you to purchase and sell a wide variety of assets, including bonds, stocks, cryptocurrencies, and much more.

Some examples of digital investment are online brokerages, mobile trading apps, and similar tools.

Although there are many myths around this topic, investments interest young people for a number of reasons. When approached the right way, this type of financial operation can offer you a variety of benefits, including:

· The possibility of a regular income - Investing money into certain assets can potentially provide you with a steady income that will cover your daily expenses.

· Long-term returns - According to experts, cash cannot grow much, whereas different assets can. That is, buying and selling assets can bring you long-term rewards and help multiply your savings.

· Protection against inflation - As you should know, annual inflation can make your savings decrease in value over time. However, if you put your money in something that has a rate of return that’s higher than the rate of inflation, simply put, it can help you outperform inflation.

All in all, buying and selling assets can help you put your money to work and potentially build wealth. Moreover, buying and selling assets with the help of technology also has a few benefits over traditional methods. Namely, it’s much more convenient and can potentially offer quicker execution and lower fees.

Now that you know a bit about digital investment and its potential benefits, you must still have many common misconceptions in mind that can hold you back from giving it a try.

Let us tell you about the four most common myths and debunk them for you right now:

It’s Complicated and Expensive
The number one myth is that starting your journey in digital investment is too complex and expensive for a student. Many young people believe that it requires significant savings and strong skills and knowledge even to make the first steps.

Reality: Despite a common belief, buying and selling virtual assets is incredibly accessible these days. There are plenty of online platforms, services, and apps that will help you get started. Also, these platforms offer opportunities for users with different budgets, so it’s possible to start with as little as $100 or even less.

Digital Assets Aren’t a “Real Thing”
When it comes to investing, many people believe that the only “real” way to do this is to put your money into something physical, such as actual companies, real estate, etc. Virtual assets, such as NFTs, cryptocurrency, and others, on the other hand, are considered unreal. Moreover, people often feel like they don’t hold any actual value.

Reality: Virtual assets can deliver no less ROI (return on investment) than physical ones. Moreover, they can bring higher ROIs due to a lower cost. Besides, buying assets online doesn’t mean that you can only put your money into something virtual. It just means that you can handle the process with the help of technology.

It’s Unsafe, and There Are Hidden Fees
To many people, digital investment sounds like something incredibly unsafe. Young people are often concerned about the security of their transactions. And there is also a common myth that platforms that offer you to buy and sell assets online often take hidden fees.

Reality: On the one hand, buying assets is never 100% safe. This type of operation is associated with a lot of risk, especially when handled thoughtlessly. However, if you choose a reliable platform and develop a wise strategy, you should stay on the safe side. As for hidden fees, reputable platforms typically don’t have them. They might charge you some fees for maintenance, storage, and transactions. However, the terms should be very transparent.

It Is the Same as Gambling
Probably one of the most widespread misconceptions is that buying and selling assets (whether physical or digital) is pretty much the same as gambling, where you can either get incredibly wealthy if you are lucky or just go broke.

Reality: Investing always carries certain risks, like any other financial operation. However, it doesn’t rely solely on luck. Unlike gambling, it requires a cold mind and strategy to achieve success. Many beginners hire professional advisors and investment specialists to create personalized plans and tactics. And this protects them from losing everything.

Digital investment can be an excellent opportunity for students to earn income, protect their savings, and gain a wealth of long-term rewards.

Of course, getting started with it always requires some preparation. As a student, you might want to read an unbiased review and delegate your tasks to pros in order to save time for learning more about buying and selling assets effectively. However, now you know that it can be worth the effort. Keep in mind the demystification of the common myths in mind in order to not let any fears stop you. And good luck!