Our new blog from nimbl blogger, Rîon-Jensen explores ways that young people can trial investing their money to make a profit, here's what he had to say:
I’m sure you have all heard of bitcoin, if not, it’s virtual currency that you can buy, and depending on how much money it makes (profit), its value will go either up or down.
People who have recently invested in bitcoins have made a high profit, as their value has increased dramatically - for example, 10,000 bitcoins are now worth around £75 million – wow!
Now I thought that I would have a go at something similar - (don’t judge me!) to see how much ROI I would get back (Return on Investment), but doing this is risky so I would advise trialling with small amounts of money initially.
I recently turned 13, so I am not old enough to invest in stocks, shares or virtual currency such as bitcoin, instead I exchanged my left-over Christmas money for dollars as a test.
As the value of the pound is going down in comparison to the dollar, exchanging my money into dollars should stop my money’s value from falling with the pound. If the pound’s value does drop below the US dollar, then I will exchange my dollars back into pounds with the hope that I will profit from the exchange (getting more money than I had before).
If this doesn’t happen and the pound’s value somehow increases, inevitably you would lose money. However, I strongly doubt that this will happen thus why I recommend doing it for now.
This is not a suggestion that you should follow suit, but merely information on what I am currently doing (as mentioned I am only using a small amount of money as a test). I will let you know what happens on my next blog, whether it worked or not!