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Should I start investing in crypto as a highschooler?
Im a highschooler and my friend wants me to get into crypto and memecoin since he has a lot of experience. However my parents are saying no, what should I do?
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Fred’s Answer
I am not a financial advisor. This is simply my opinion.
Crypto is not an investment. It is speculating. Meme coins are even worse. Odds are EXTREMLY high you will lose every dollar you spend in that market. You are essentially gambling with very poor odds.
Investing refers to putting your money somewhere LONG TERM - years if not decades. If you want to invest, and it is actually a good idea to start early, invest in a low-fee mutual fund that tracks one of the major market indices. Park it there and don't touch it for 30 years. Invest MORE whenever you can.
Crypto is not an investment. It is speculating. Meme coins are even worse. Odds are EXTREMLY high you will lose every dollar you spend in that market. You are essentially gambling with very poor odds.
Investing refers to putting your money somewhere LONG TERM - years if not decades. If you want to invest, and it is actually a good idea to start early, invest in a low-fee mutual fund that tracks one of the major market indices. Park it there and don't touch it for 30 years. Invest MORE whenever you can.
Updated
Anish’s Answer
Simply put, no, you shouldn't start investing in crypto as a high schooler — at least not seriously or with significant amounts of money.
Cryptocurrency is extremely volatile and unpredictable, meaning prices can swing wildly in a short amount of time. As a high schooler, you likely don’t have a stable income or large savings, and putting money into something risky like crypto could lead to quick losses. At this stage, it’s more important to focus on learning about personal finance, saving consistently, and building smart money habits.
If you do want to invest in crypto just to learn or satisfy your curiosity, it’s best to treat it like entertainment or a hobby — never invest more than 1% of your net worth (meaning your total savings, gifts, allowance, etc.). That way, even if it crashes, it won’t affect your financial stability. Think of it like buying a video game or going to the movies — it’s not going to make you rich, but you might learn something along the way.
Focusing on education, saving, and low-risk investing (like index funds or a savings account) will serve you far better in the long run than chasing fast money through crypto.
Cryptocurrency is extremely volatile and unpredictable, meaning prices can swing wildly in a short amount of time. As a high schooler, you likely don’t have a stable income or large savings, and putting money into something risky like crypto could lead to quick losses. At this stage, it’s more important to focus on learning about personal finance, saving consistently, and building smart money habits.
If you do want to invest in crypto just to learn or satisfy your curiosity, it’s best to treat it like entertainment or a hobby — never invest more than 1% of your net worth (meaning your total savings, gifts, allowance, etc.). That way, even if it crashes, it won’t affect your financial stability. Think of it like buying a video game or going to the movies — it’s not going to make you rich, but you might learn something along the way.
Focusing on education, saving, and low-risk investing (like index funds or a savings account) will serve you far better in the long run than chasing fast money through crypto.
Updated
Rick’s Answer
Felix,
I can help you with this question. The first thing you want to do is educate yourself about crypto currencies. The second thing you want to do is accept that crypto currencies are inherently volatile.
Step # 1
My son is Crypto Dad on You Tube. He has a degree in computer science and became interested in Bitcoin when it first became available. His nine-year-old site has about 200,000 subscribers and his weekly videos often have a million hits. His focus is on how to buy, sell and stores crypto safely. He doesn't recommend when to buy or sell. The site is free. You can start there.
Step # 2
As a financial investment broker for over for over 50 years, here's my take on Bitcoin. I believe Bitcoin is the people's money. For thousands of years only government entities created, managed and administered a nation's currency. Bitcoin was created by and is for all citizens globally and is free of any government control. But one big risk is that governments will see Bitcoin as a threat to their own currencies and will act against it, along with all the other cryptos. So, with that risk, we can't call Bitcoin an investment. Instead, it's basically a gamble. But sometimes gambles pay off big. And sometimes they don't.
Now, is Bitcoin really money? Well, money has always been defined as a "medium of exchange and a store of value." So, yes, I believe it does qualify as money, primarily because of its block chain technology and the secure protocol of its algorithm. You see there will never be more that 21 million Bitcoins. So, there will never be inflation with Bitcoin, whereas governments, in control of their own currencies, can print as much money as there is ink in their printing presses.
For example, in the U.S. printing money continuously has resulted in a 34 trillion-dollar national debt that will probably never be paid off. Hence, we have continuous inflation of our currency. Example - my wife and I went to the first Mac Donalds that was opened in our hometown in the late 1950's. A hamburger was 15 cents, a french fry order was 10 cents, and a milk shake was also 15 cents. Today's price for that order? That's government caused inflation.
Now, all that being said, I did take a gamble when Covid hit a few years ago. All the stock and bond markets, and Bitcoin, fell dramatically. I bought a Bitcoin mining stock that had fallen to $2.00 per share. And I bought a "lot" of shares. When the vaccine came out everything turned around and Bitcoin soared, and so did my mining stock because they owned a lot of Bitcoins. Three months later I sold those shares for $75.00 per share. Best investment day of my life!
So, there's my answer to your question. Truthfully a buy-hold strategy for you is the safest way to go if you're intent on investing in crypto. Long term is always best as what I did was a once-in-a-lifetime result. Hard to duplicate.
Good luck my friend.
Rick
I can help you with this question. The first thing you want to do is educate yourself about crypto currencies. The second thing you want to do is accept that crypto currencies are inherently volatile.
Step # 1
My son is Crypto Dad on You Tube. He has a degree in computer science and became interested in Bitcoin when it first became available. His nine-year-old site has about 200,000 subscribers and his weekly videos often have a million hits. His focus is on how to buy, sell and stores crypto safely. He doesn't recommend when to buy or sell. The site is free. You can start there.
Step # 2
As a financial investment broker for over for over 50 years, here's my take on Bitcoin. I believe Bitcoin is the people's money. For thousands of years only government entities created, managed and administered a nation's currency. Bitcoin was created by and is for all citizens globally and is free of any government control. But one big risk is that governments will see Bitcoin as a threat to their own currencies and will act against it, along with all the other cryptos. So, with that risk, we can't call Bitcoin an investment. Instead, it's basically a gamble. But sometimes gambles pay off big. And sometimes they don't.
Now, is Bitcoin really money? Well, money has always been defined as a "medium of exchange and a store of value." So, yes, I believe it does qualify as money, primarily because of its block chain technology and the secure protocol of its algorithm. You see there will never be more that 21 million Bitcoins. So, there will never be inflation with Bitcoin, whereas governments, in control of their own currencies, can print as much money as there is ink in their printing presses.
For example, in the U.S. printing money continuously has resulted in a 34 trillion-dollar national debt that will probably never be paid off. Hence, we have continuous inflation of our currency. Example - my wife and I went to the first Mac Donalds that was opened in our hometown in the late 1950's. A hamburger was 15 cents, a french fry order was 10 cents, and a milk shake was also 15 cents. Today's price for that order? That's government caused inflation.
Now, all that being said, I did take a gamble when Covid hit a few years ago. All the stock and bond markets, and Bitcoin, fell dramatically. I bought a Bitcoin mining stock that had fallen to $2.00 per share. And I bought a "lot" of shares. When the vaccine came out everything turned around and Bitcoin soared, and so did my mining stock because they owned a lot of Bitcoins. Three months later I sold those shares for $75.00 per share. Best investment day of my life!
So, there's my answer to your question. Truthfully a buy-hold strategy for you is the safest way to go if you're intent on investing in crypto. Long term is always best as what I did was a once-in-a-lifetime result. Hard to duplicate.
Good luck my friend.
Rick