There’s been a lot of talk about income-generating sources nowadays as we slowly navigate through adulthood. Some people take part-time jobs or internships at companies, while some choose to start their own online businesses or invest in stocks. Another popular practice that more and more people are getting into is cryptocurrency.
What is cryptocurrency?
Think of cryptocurrency like tokens at an arcade. Simply put, cryptocurrency is essentially just digital currency which can be acquired through fiat money. Fiat money is simply government-issued currency, so in the case of the Philippines, it’s the Philippine Peso. However, more often than not, people often trade Fiat money for USDT, a digital form of the US dollar issued by Tether Limited which they can then use to trade for other cryptocurrencies.
When you’re getting into cryptocurrency, you have to be familiar with the cryptocurrency exchange platforms where you will be getting your fiat money exchanged. Popular platforms include Binance, Coinbase, and Gemini. If you want to exchange your money in Philippine-based cryptocurrency exchange platforms, you can also look into Coins.ph and PDAX.
How do you earn money through cryptocurrency?
According to Colin Sanchez*, a Computer Science student from the Ateneo de Manila University, the process of earning money through cryptocurrency is relatively simple. “In order to earn, you simply buy a certain currency at a low price, and sell it at a higher price. There are different strategies. Some people track changes in the market and do trades within the day or week. On the other hand, some people are more comfortable buying and then coming back to it years from now. Either way, the goal is still the same, buy a coin at a low price and sell it for a higher price,” Sanchez shared.
There is also a strategy known as high risk, high reward, where you either hit the jackpot or lose your entire investment. It’s a once in a blue moon deal similar to short-term investments but you’ll have to be wise about anticipating the changes in prices given the volatile nature of the cryptomarket.
When investing in a cryptocurrency like this, make sure that you find one that has a lot of potential and hype built around it. If you’re lucky, you might just make an investment in a gold mine like dogecoin (ICYMI, this coin was made as a joke and wasn’t worth much, but it accumulated hype even causing Elon Musk to tweet about it!) which was a wild card! Some popular cryptocurrencies include Bitcoin, Ethereum, Stellar, and Binance Coin, among others.
But of course, for all these strategies, it is essential that you do your research when strategizing how you will go about with your investments. Some invest large amounts of money while some invest smaller amounts.
Originally, Joshua Ilagan, an Engineering student from the Philippine State College of Aeronautics, invested P47,000 in Ethereum. He plays a game called Axie Infinity where you buy Axies and obtain small love potions, or SLPs, to acquire new Axies through breeding. In turn, you can sell these Axies for higher than you bought them (yes, you can play games to earn now!)
“I’m lucky my parents were supportive of me when I chose to invest, but the risk is big so I also had my doubts. If it comes to investing in crypto when playing games, the risk is higher because it’s skill-based. You have to be good at the game. But you always have to take risks,” Ilagan said.
Meanwhile, Yanni Francisco, a Development Studies student at the Ateneo de Manila University, invested P4,000, though he had his apprehensions. “There were some worries about losing money since I had no experience with stocks or any speculative investing. I was also worried about being scammed during my first trade. I also thought that I was too late to the party and I would lose out on making money,” Francisco recounted. Luckily, he’s made his money back and he is planning to invest more in the coming months.
With all that in mind, cryptocurrency can be considered as a sideline or source of income as you look for your next hustle. But it also requires you to be wise and strategic, so you know when to take risks.
*The interviewee requested that their real name remain confidential.
READ MORE:
How You Should Be Spending Your Money in Your 20s, According to a Financial YouTuber
I Tried to Invest in Crypto-Here's What I Learned
5 Money Mistakes I Made in My Early 20s
What Is Axie Infinity, the NFT Game That Lets You Earn as You Play?
From The Candy Bulletin Community
