Introduction

As a student, funding your life at university can become challenging at times, when trying to balance having fun with academic responsibilities and financial constraints. Between groceries, rent, bills and social activities, managing a limited budget can be quite demanding. While some students may get a job to alleviate these issues, this often comes with time constraints and added stress. However, there are different ventures readily available for students looking to earn extra income from the comfort of their bedroom. One of these ways is through trading financial markets, which provides people with the opportunity to make significant returns from their laptop or phone, while also learning valuable financial skills. In this article, we will be focusing on how students can make money through the forex and crypto markets, while offering tips on how to improve your chances of success on this venture.

Forex Trading 

What is Forex Trading?

Forex trading, also known as foreign exchange trading, is the process of buying one currency and selling another to profit from the changes in their exchange rates. The market is open 24 hours from 5pm Sunday to 4pm Friday, while also being the largest financial market in the world, with a daily trading volume exceeding $6 trillion. Through trading forex, individuals can make around 5-10% returns each month on their capital, which is significantly higher compared to the returns from a savings account. The continuous market availability of forex offers students a flexible approach to trading compared to other financial markets such as the stock market, while also creating a potential income source to help support students during university. Commonly there are two ways individuals can go by trading forex which are:

Real Funds: Trading with real funds involves investing using your own capital to place trades. By setting up a brokerage account and depositing money in said account, traders can invest their money into different currency pairs, where the potential profits are directly proportional to the amount of capital you invest. This is the most common and easiest way to trade and extremely accessible to students.

Funded Account: A funded account is a trading account funded by a proprietary trading firm. These firms provide traders access to their capital to trade forex in exchange for a share of the profits. In terms of real funds, it is advisable to start with at least £1,000 to £5,000, which is why these types of accounts create an opportunity for traders with a low amount of capital to make profits unattainable with their real funds, which is great for students who may not have the upfront funds to trade with real funds. Typically, traders must undergo an evaluation period where they demonstrate their ability to generate a certain level of profit on a demo account before being granted access to the firm’s funds.

To become a proficient trader, a learning period of 6-12 months is typically required. However, we understand that students need ways to make money now, which is why our group offers the following forex services:

Signals:  Forex Signals are real time trade alerts based on analysis of certain currency pairs. These alerts provide traders with specific information on what type of trade to place, with other information such as when to take profits and where to set the stop loss. Our signals are produced by experienced traders who have a successful win rate. By following signals this can allow students who may not have the required experience to open trades and generate returns.  

Account Management:  Forex Account management is a service where experienced traders manage your trading account on your behalf. We understand a lot of people don’t want to have to wait for signals and go through the process of placing trades as this can be time consuming waiting for the next signal. Which is why through account management, students can focus on their studies and other responsibilities while also generating returns from the forex market completely passively.

Crypto Trading 

What is crypto trading?

Crypto trading, also known as cryptocurrency trading, involves the buying and selling of digital currencies to profit from changes in their prices. Although it is a financial market similar to the forex market, the characteristics of the two markets are quite different. The crypto market is relatively new and based on emerging technology, creating a volatile market dynamic. It is also the only financial market to operate 24/7, providing students with a completely flexible trading environment. While this necessitates more risk, there is still a great opportunity to make substantial gains higher than any other market, which offers students a quicker way to increase their personal funds. Additionally, crypto trading offers a wider range of profit-making methods, including:

Spot Trading: Spot trading in the cryptocurrency market refers to the purchase and sale of cryptocurrencies for immediate delivery. This means that trades are concluded “on the spot,” and ownership of the digital asset is immediately transferred between buyers and sellers. Spot trading is simple and is generally the starting point for newcomers to the cryptocurrency sector. Traders can store their assets in a digital wallet and determine when to sell based on market conditions.

Leverage Trading: Leverage trading allows traders to borrow capital from their broker to increase the size of their trading position, amplifying the potential gains and losses. For example, with a leverage ratio of 5:1, a trader can control a position of £500 with £100 of their own capital. When partaking in this form of trading, you’re speculating on the price movements rather than owning the asset. This can be useful for students who have low capital, but it’s important to note that leverage also amplifies risk, with leverage causing your investment to become more sensitive to price movements. 

Airdrops: Airdrops involve the distribution of cryptocurrency tokens to various wallet addresses. These free tokens are typically allocated to investors who hold a certain amount of a specific cryptocurrency. This method is employed by blockchain projects to increase awareness, promote adoption, and reward loyal community members. Airdrops can take various forms, such as standard sign-ups, holder-based distributions, snapshot-based at specific block heights, bounty-based for completing tasks, or fork-based following a blockchain fork. This presents an excellent opportunity for students to earn additional income while learning about the cryptocurrency market and participating in community-driven initiatives.

In addition to our forex signals and forex account management, we also offer the same services for crypto as well, but also information on potential airdrop to take part in. With these services it should assist you in your trading journey, allowing students to make money alongside learning how to trade themselves.

How to get started?

While all these financial avenues are a great way for students to make money, it is important certain steps every individual must take at the start of their journey: 

Education: Before diving into trading, it is crucial to learn about the market. Understanding the core principles of how forex and crypto trading works, while also learning technical and fundamental factors which influence the market are essential components for developing the skills needed to trade the market.

Set up a brokerage account: To start trading, you will need to set up a brokerage account with a reputable institution. When choosing a broker, it is important to consider factors such as regulatory compliance, trading platform features, fees and commissions, customer support, and the availability of educational resources. Ensure the broker is regulated by a recognized financial authority to safeguard your investments. For forex we advise the use of the brokers IG markets or Axi which allows spread betting where traders speculate on the price of a currency pair instead of owning it, which is tax free. Whereas, for crypto we advise signing up with Bybit due to its robust trading infrastructure and strong focus on security.

Develop a strategy: Having a well-defined strategy provides you with a framework for entering and exiting trades. There are various strategies, however we would advise the use of swing trading for students, a medium-term trading strategy which involves holding a trade for days or weeks. This is a perfect strategy for students as this approach requires less time commitment compared to day trading, allowing you to focus on your studies and other responsibilities.

Risk Management: As a student every penny counts and when investing in the forex market you are taking a risk as while everyone wants to make a profit, the chance of making a loss is just as likely. This is why the importance of risk management is crucial to minimise losses, especially due to the volatile nature of forex and crypto. A common rule of thumb is to never risk more than 1-2% of your trading account on a single trade. By following this guideline, this will help minimise the impact of losses on your trade balance, increasing the chance of long-term success.

These 4 steps provide a solid foundation for students looking to start their journey in forex trading.

Learning and Earning

At 1st2Notify, we understand how busy the university season can be for students, but we believe in empowering students to navigate the world of trading. This is why we’ve created an environment where students can learn the ways of trading through our comprehensive educational resources and support systems from our knowledge staff, dedicated to helping you exceed. Additionally, while learning, we provide our members with ways they can make money through signals, account management and other ventures as we are always looking for ways to provide more value. We want our members to be rewarded for the time and money they invest into the Discord group, which is why we continually strive to offer innovative opportunities and the best possible support to ensure their success in trading.