The tech-savvy generation dreams of financial freedom, and cryptocurrency investments have provided an avenue to fulfill that dream. After all, who doesn’t want to get rich quick?
The cryptocurrency market seems attractive to many young people: low-effort investing, passive income, novelty, and detachment from regular financial markets. Some of the biggest companies in the world, such as Tesla, Starbucks, and Microsoft, have already made Bitcoin available to their clients, and millennials, more than any other generation, hold onto the digital coin, believing in its promising future.
Young investors often forget the pivotal issues that come along with trading cryptocurrency; a commonality with lack of experience in the financial world and acting on risky, insufficiently researched speculation.
Trading can be dangerous for small-time investors who lack knowledge about the crypto market, and go straight into trading, influenced only by ongoing trends and persuasive social media personalities saying “don’t sleep on crypto.”
NYU finance professor and academic David Yermack commented on this topic to DailyCoin:
“Trading is a zero-sum game. Nobody should be quitting their real jobs to become a crypto speculator.”
There are many stories about traders going bankrupt from cryptocurrency investments. Sometimes people sacrifice their entire life’s savings to cryptocurrency and lose everything.
Nevertheless, some millennials have nothing to lose and trade in the market without any other source of income.
Full-time crypto investors from Spain, 23-year-old twins Carlos and Pablo González del Valle Menendez, are convinced that digital technology is the future, and cryptocurrency is a core part of it. After quitting business studies and a few years of trading binary options, forex, and futures, they made the transition to begin investing into crypto in 2020.
“I already have experience in other market investments, so starting with blockchain was easy for me. I had made more money with crypto compared to my previous investments,”
Carlos and Pablo successfully make a living by investing in cryptocurrency, and both plan to be in the market for the foreseeable future, however, their success wasn’t immediate. The twins worked long hours in the stock market for a few years, and it took them months to feel comfortable in the world of cryptocurrency trade. Now they each spend 2 hours a day, on average, researching, and by working alternately as a team, they are able to enjoy a lot of free time.
Another investor, a 28-year-old American, who wanted to keep their identity hidden, has told their success story about solely living off of their cryptocurrency investments.
They were working in entrepreneurial business development and saw bitcoin as an investment project that made sense:
“As I learned more about blockchain technology and cryptocurrencies, I adopted a “stack sats” mentality realizing that in dollar value I could only profit in the long term where fiat value will continue to decrease.”
The young person shares their experience:
“During my first best market I did have sleepless nights. Not too much, but I wasn’t familiar with trends and didn’t completely comprehend the necessity of market cycles. Also, maintaining the understanding that any investment can lose value and that money in the bank is arguably the most risky, reassures me that stored value is safest and better invested in cryptocurrency.”
A representative from Crypto Global Management told DailyCoin that many millennials invest in cryptocurrency because of the market’s bright prospects:
“The crypto space is extremely volatile, but blockchain is here to stay. Crypto does come with major risk just like any other asset class, but due to its infancy, it will remain volatile for a while until regulations kick in.”
On The Flipside
- Some millennials are indeed able to make a living from their crypto investments.
- Investing in cryptocurrencies can be very profitable in the long term, but only with a cautious mindset and adequate research into the market.
Why You Should Care?
- Learning from other people’s experiences can be invaluable in helping with decision-making.
- Trading can be risky, and potential traders should be ready for both its risks and rewards.