According to a survey, the students who are short on cash are increasingly turning to cryptocurrency investing to be able to pay fees at the university.
The rate of students engaging in cryptocurrencies has risen in a year, according to the website Save the Student. One 22-year-old investor, on the other hand, claimed to have lost money and recommended others to do their research before investing.
Three-quarters of those surveyed admitted to considering dropping out of school. The most common causes were mental health concerns and the covid-19 outbreak, although 41% stated the money was the most crucial factor.
“With an unpredictable part-time workforce and some parents losing incomes due to the pandemic, traditional financing options bridging the financial gap for students has grown tough to come by,” Save the Student’s Jake Butler explained.
According to the report, due to maintenance, the average college student faces a £340 monthly shortage failing to pay the average monthly living costs of £810. Parental financial assistance, part-time work and savings are still the most likely strategies to bridge the gap. While some students stated, they had discovered other means to raise money, such as taking out overdrafts and selling their possessions, gambling, and actively engaging in drug trials. The number of students investing in cryptocurrencies was still small, with only approximately 6% of students doing so, but it had increased threefold in a year.
One of the students was Daniel Tones, a psychology student at the University of Warwick. During the Covid-19 crisis, the 22-year-old’s income as a student representative was limited, but he could supplement his income by making Amazon deliveries. He claimed that group discussions had sown the seed of interest in crypto investment. “I gave it a shot,” he admitted, “but I quickly lost.” After speaking with economics students about it, he stated he wished he had known more before taking the risk. He claimed that it was simple to begin investing money but that he went on to lose a few hundred pounds.
Words of advice for students
Other students claim that investing has been more lucrative for them, but regulators have cautioned young people about the dangers of doing so. Young individuals are willing to put their money into high-risk investments for the “challenging, competitiveness, and novelty,” according to the Financial Conduct Authority. According to the report, they were drawn to the “thrill” instead of saving for the future. In June, the regulator revealed that 14% of crypto buyers surveyed indicated they had borrowed money to invest, boosted by reports of significant gains – a figure one analyst described as “absolutely alarming.”