The emergence of digital currencies has numerous saving and earning opportunities for students. This especially benefits students who are young and still hoping to save up wealth for the future. If you fall in that category, why not start now? When it comes to savings and earning returns, earlier is always better.
If you are a young crypto enthusiast looking to save money, here’s a detailed guide on how to save money as a student using crypto. It is a very simple and straightforward process. With Bitmama, you can easily save money using crypto and also earn returns while at it. This article shows you exactly how to. Let’s dive in!
Is Crypto a good long-term investment?
Many prominent cryptocurrencies such as Ethereum and Bitcoin were launched with lofty goals, which can easily be achieved over a long time horizon. While there is no 100% guarantee that a cryptocurrency project will succeed and your savings will yield great profit, early crypto investors can easily reach their goal over the long term. So basically, we can safely conclude that cryptocurrency is a good long-term investment.
What is a Crypto savings account?
Before we dive into how to save money as a student using crypto, let’s examine the meaning of a crypto savings account. A crypto savings account is simply an account that offers you a place to deposit all your cryptocurrency assets. Usually, you get paid interest depending on the duration the crypto is left for, unlike when you just keep your crypto in a regular crypto wallet. Just like with a traditional savings account, you can easily withdraw your assets, but the withdrawal rules differ depending on the type of crypto exchange you use and your account type.
Check this out – What is a wallet address and how to identify yours on Bitmama?
How does a Cryptocurrency savings account work?
A crypto savings account operates basically the same way as a regular savings account. Essentially, you deposit cryptocurrency into the account in the cryptocurrency exchange and can use your crypto deposits to loan to other people on the platform. However, the only difference between crypto and regular account is that the process involves a precise cryptocurrency, such as Bitcoin and/or Ethereum instead of fiat money.
You can also transfer existing assets directly from your regular crypto wallet to your crypto savings account. However, you can still decide to purchase your desired crypto asset on the savings platform to invest. The specific cryptocurrencies you can save in the account primarily depend on the cryptocurrency exchange platform you are using and its kinds of account offerings. This is more or less crypto staking.
Usually, the crypto exchange pays you interest on your stake and the interest can vary depending on the terms and conditions of the crypto exchange. Also, the demand and supply of crypto assets and your withdrawal flexibility can greatly affect your interest rate similar to the how Dollar Cost Averaging trading technique works. Depending on the type of crypto savings account, you may earn simple interest or may be able to reinvest your profits to benefit greatly from compound interest.
How to save money as a student using Crypto
The easiest way to save money as a student using crypto is through crypto staking. Crypto staking involves traders locking up their crypto for a period of time. Basically, this aids the operation of the blockchain and in return, traders earn more cryptocurrency or any other prespecified reward.
With Bitmama crypto staking, you can easily save money as a student using crypto and earn while at it. In simple terms, you lock your coins for a period and receive your stake with returns after the time elapses.
Follow the steps below to save money as a student using Crypto on Bitmama:
1. Download and register on the Bitmama app, completing your verification up till level 3.
2. From your app dashboard, select staking.
3.Select staking once again and click on “earn now”.
4. Enter the payment wallet, amount you wish to stake, subscription type, duration and other necessary details.
5. Lastly, click “Submit”.
Congrats, you just completed your crypto staking process!
For newbies who want to learn how to save money as a student using crypto, it is important to know that crypto investment is not a quick-rich scheme. Hence, your savings will only yield results when it is done consistently for a long period of time. This is why it is not advisable to take a loan to invest in crypto. Ultimately, we recommend that you start small and only use your spare change until your investment starts to pay off.
Basically, the crypto staking process on Bitmama Earn is pretty straightforward. Follow the steps above, sit back and relax and let your money work for you.
Start making money on your crypto without trading today. Download the Bitmama app on Android or iOS.
