Teenagers seek profitable methods of investing their money and cryptocurrency remains a growing choice. Where and how would you begin? In this article, I’ll highlight some pros and cons of cryptocurrency as well as explore how to open a crypto wallet. Ultimately, this will lead you down the path of unlocking the world of cryptocurrency as well as understanding its risks.
Cryptocurrency is experiencing vast growth. Coinigy, a digital wallet management company, states that crypto wallets are evolving fast and have 68 million users (Coinigy, 2021). When the market grows, investors benefit through increased earnings. Vincent Palmerio, an 18-year old cryptocurrency investor and miner stated, “if you catch a crypto project in its early days, you can make massive returns off of the project.” As one can see, opportunities can sometimes prove to be lucrative when new crypto projects grow and develop.
On the contrary, cryptocurrency investing can be volatile! Cryptocurrency money often rapidly fluctuates in price. For reference, about a year ago, 1 Bitcoin was valued at $38,511. After being at this point, the value of 1 Bitcoin then fell down all the way to around $16,000, and has currently recovered somewhat to around $28,000 (Google, 2023). Financial advisor Mick Gahalla said that “because cryptocurrency isn’t regulated, the company that is holding your money could go out of business and you would lose your money instantly.” Your cryptocurrency wallet could be detrimentally affected so the rapidly-changing crypto environment is something to understand prior to investing.
If you have decided to invest in cryptocurrency despite the volatility, you may be wondering how to set up a cryptocurrency wallet. First, select a wallet to use. Investopedia, the world's leading source of financial content on the web, states that the five best wallets of 2023 are Trezor Model T, Ledger Nano X, Electrum, Exodus, and Mycelium (Conway, 2023). Second, purchase or download your chosen wallet, depending on the specifications of your selected wallet. Third, create a cryptocurrency account with your new wallet and add account security features. Finally, after completing all of these steps, deposit some funds into your chosen cryptocurrency.
Hopefully, you now understand some of the pros and cons of having a cryptocurrency wallet. Ultimately, because investing in cryptocurrency is on the rise, having this knowledge will be helpful whether or not you decide to invest.