The cryptocurrency craze has reached a fever pitch in recent years. The market cap of Bitcoin alone has risen from just over $0 in 2009 to over $100 billion at the time of writing this post. More and more people are looking to get into the crypto space and cash in on this booming new industry. But for those who are either committed to their finance degree, or who have already graduated, it can be hard to find a satisfying way to put that knowledge to use. This post will introduce some ways that recent graduates from finance degrees can put their skills to work in the exciting world of cryptocurrencies.
What is Crypto?
Crypto, short for digital currency, is a digital currency created and managed entirely by computer software. By its very nature, crypto is not tied to any country or government. It is entirely digital and has no physical form. What this means is that crypto is difficult to “print” and can be created and exchanged entirely through computer code. As a result, the number of cryptocurrencies in circulation is astronomical, with over 3,500 cryptocurrencies currently in circulation. This does not even account for the thousands of altcoins that have been created by blockchain startups and blockchain companies.
The cryptocurrency craze
Over the last few years, cryptocurrency has become increasingly popular. In 2015, only a little over 10% of Bitcoin users owned some of this new “cryptocurrency” (called “digital” for simplicity). By December of that year, this figure had risen to roughly 70% and the amount of daily transactions had doubled. All of this was largely due to the fact that cryptocurrency has created a new asset class which is relatively easy to acquire. Rather than buying shares in an established company, people are just buying and selling digital tokens which have properties similar to those of stock in a company.
There are already hundreds of different cryptocurrencies on the market with most being very similar to one another.
Recent graduates from finance degrees
Let’s talk about why you should consider working in cryptocurrency. After all, it’s not just because you want a career change. Many recent graduates from finance degrees are leveraging their expertise in financial planning and analysis to become crypto enthusiasts. They’re aware of the volatility that comes with investing, and they’re well-versed in the way in which this industry uses cryptography to keep it truly private. But what can you do with that knowledge? Here are a few of the main areas of cryptocurrency work that are expected to be popular in the coming years.
Since Bitcoin and other cryptocurrencies are digital tokens, they’re stored in digital wallets on personal computers or in virtual exchanges.
Four ways to put your knowledge to use in the crypto world
1. Look for work in the Bitcoin space.
“The market cap of Bitcoin has increased more than 1400% over the last 2 years, making it by far the most valuable cryptocurrency,” the study notes.
Employers are looking for experts to help them understand and utilize this market. That’s why many companies and institutes have reached out to the authors to create custom educational resources to help students learn more about this growing industry. There’s no better way to get a foot in the door of this rapidly growing industry than to study cryptocurrencies in your finance degree, then connect with these resources to get hired as an intern.
2. Become a course developer
Starting out as a course developer can be a great way to get an inside look into the workings of a successful company.
Invest in crypto projects
The easiest way to get started in cryptocurrency investing is to use some of the sites like FundYourselfNow, which allow you to invest in new projects or currencies right from the comfort of your desk. If this isn’t quite your style, then the next best option is to put your finance degree to work for you by finding profitable projects and investing in them yourself. The demand for the kind of education that you get at a finance or economics degree, in combination with the entrepreneurial skills you’ve learned in your degree, is very powerful, and you can easily find ideas that you can help with on a project-by-project basis. One project that you can get involved with is Zerocoin Electric Coin Company.
Be a crypto trader
Cryptocurrency trading is not easy. Though it can be complicated at times, you can learn how to make a decent amount of money doing it. If you want to make more money, or have the freedom to do so, you have to get better at the game.
There are dozens of trading books on Amazon, and thousands of others on other digital platforms, such as DabaTrade, Crypto Vault, and Cryptsy. The key to crypto trading is that you will have to be able to read and absorb a lot of information. You’ll need to find online resources that can help guide you through the learning process.
If you are able to consume vast amounts of content about crypto, you can make a decent living as a professional trader. Prices of Bitcoin are wildly volatile, so you may be able to gain 20 or 30% on a trade.
Work for a cryptocurrency startup
If you’re just getting your foot in the door, your best bet for landing a decent paying job at a cryptocurrency startup is probably through your connection to the CEO or founder. If you know someone who is a current or former employee of a cryptocurrency startup, reach out to them and offer to help them with their internship. If they’re impressed with your connection to the company, they’ll probably be impressed with your work.
If the company is outside of your network or is based out of your hometown, some cryptocurrency recruiters and recruiting agencies exist to help you find such a job.
Start your own cryptocurrency company
Did you know that more than 17% of students enrolled in business school are intending to start their own cryptocurrency company within the next five years? That means that there will be a lot of money to be made for those who do get in on the action. Of course, like all business models, it all depends on the quality of the product that’s being offered. But if you have a passion for cryptocurrencies, this is a great way to get started.
It’s important to choose a proper token to buy and trade with. This is the cryptocurrency unit that you wish to spend in exchange for goods and services. This will usually be a more liquid market (meaning there are more of them out there) than a market for a single cryptocurrency.
Every step of the way in business, success is directly related to your ability to identify new market trends and successfully navigate through them. Cryptocurrency can be seen as the physical embodiment of a digital financial system. As long as it remains fragmented and under-regulated, it will continue to be susceptible to the whims of the central banking system. Fortunately, recent graduates who are passionate about cryptocurrency can add their knowledge of the industry to any company that will have them.
It is important to be careful when identifying a way to use a degree in finance. Cryptocurrencies are volatile and subject to frequent changes. Future returns will depend on the general economy and the success of other cryptocurrencies.