The following article holds opinions about financial decisions that are not endorsed by the Ke Alaka‘i or BYU-Hawaii but are that of those who expressed them. The Ke Alaka‘i does not condone or condemn any of the tips discussed.
BYU-Hawaii students share how investments in the stock market and Bitcoin can help those who want to save for school expenses or long-term goals such as retirement. Shinyoung Choi, a junior from South Korea majoring in hospitality and tourism management, said, “If I could earn extra income, it [would] be great so that I wouldn’t have to worry about money for school. But on the other hand, I need to put efforts into earn extra income so that I can worry about [having] the time to study.”
Daniel Lewis, a senior from Washington majoring in accounting and business management, said he started practicing investing in the stock market to save for retirement.
Lewis said he started getting involved in the stock market two years ago using a demo account to feel the market movement, and then started putting in actual money. This amounted to $1,200 about a year later. He said, “Just show up and play, that is kind of how I view the stock market. What I’ve been doing right now is I just set aside a little bit of money where you can feel comfortable losing it all.”
He added, “When you are actually putting your own money into it, you make decisions differently.”
It is crucial to understand the stock market’s terminology and how people can read the charts to sell and buy stocks, said Lewis.
Lewis said it’s necessary to decide the platform you want to buy stocks on. He mentioned TDAmeritrade might be a better option since it doesn’t have any hidden fees.
It is important to diversify, he added. Lewis learned from a relative who had spent all of his savings on only a couple of stocks and losing the money. He stated the importance of not putting all eggs into one basket.
Lewis said it is a great idea to aim for a long-term goal financially. As a student, he said you can invest little amounts because it will grow overtime. He said $400 or $500 might be good amount to invest just for practice.
In addition to the long-term passive income benefit, he said by investing in stocks people might be able to learn about how to invest in bonds and mutual funds. Also, this could help with learning about Roth IRA and IRA 401K and other financial systems that are a necessary part of one’s life.
Lewis said he has been dedicating four or five hours a week to investing in stocks.
As a long-term investor he doesn’t have to get up and check the stock market everyday like a day trader, but he said he checks the news every week to see how the companies have been performing.
Zhaohui Jin, a freshman from China majoring in accounting, said he started investing in Bitcoin a couple of months ago and has been earning four figures of passive income a month.
According to the Telegraph, Bitcoin is a cryptocurrency, or digital currency, that employs “decentralized technology for secure payments and storing money that doesn’t require banks or people’s names.”
Jin said he was initially asked by his Chinese friend to try Bitcoin four years ago, but at that time, he didn’t listen to him. He said, “Now, he is a millionaire only by [buying] Bitcoin.” According to the Bitcoin marketplace CoinBase, one Bitcoin was worth $203 on Oct. 30, 2013. As of Nov. 2, 2017, one Bitcoin is worth $7,435.
He said if people spend three to four hours studying Bitcoin on “how to sell, buy, store,” then “you can go to market and trade it on your own.”
Bitcoin is high risk but also high return compared to stocks, Jin added. As with other investing strategies, he said, “Don’t invest money you cannot afford to lose.”
The platform he uses is called Bitconnet.
According to Jin, Bitcoin generates a long-term return. He said he only spends about 30 minutes or less a day monitoring and studying Bitcoin.
When buying Bitcoin, Jin explained that one can buy a decimal of Bitcoin–you can own 0.0001 Bitcoin, for example. Since people can buy small portion of one bitcoin, Jin recommended students consider purchasing half of Bitcoin to embark on this investing.
There are some benefits Jin suggested such as:
It has a cheap commission rate and money can be sent quickly to other countries.
It is difficult to be hacked unless someone knows your password.
Jin concluded, “If anybody [were] interested in Bitcoin, especially Bitconnect, come to me and we can talk about it. You can earn the huge passive income from this.”