Depending on your future goals and how far you are from completing your education, you might be thinking about how to start building a solid financial future for yourself.

Perhaps you find yourself in need of some extra spending money and are hoping to put your newly learned investment skills to good use.

Due to how prominent bitcoin is in the news, you might consider the cryptocurrency industry a good place to get your feet wet in the world of passive investments.

You might be attracted to bitcoin because its value doesn’t depend on the strength of the dollar, and the currency itself isn’t connected with banks. In fact, you don’t even need a bank account to own bitcoins or send them to others.

Those benefits aside, there are several things to think about before becoming a cryptocurrency investor while you’re in college.

1. It’s illegal to buy cryptocurrency with your student loans

Students commonly use their government-issued student loans to pay course fees, buy textbooks and submit deposits for housing. Some are also tapping into student loan funds to purchase bitcoins and other cryptocurrencies.

A recent poll surveyed 1,000 students with loan debt and found that over 20 percent of them used the loan money to buy cryptocurrency. However, doing that violates the terms of the loan because such investments aren’t considered educational expenses.

2. The lack of regulation presents risks

There has been a substantial amount of upheaval in the cryptocurrency industry due to scam artists and untrustworthy information. As a beginning investor, you’d arguably be more likely to fall for those things than someone who’s been involved with bitcoin for a while.

Analysts think the cryptocurrency industry will eventually become regulated to some degree. Until it does, though, you might conclude that the risk is greater than the potential reward.

3. You’ll need to do some tailored research

There are things to think about regarding the cryptocurrency industry that isn’t necessary for consideration with other types of investments.

For example, you’ll need a wallet for storing your bitcoins. Hardware wallets are excellent accessories to research. They keep your earnings safe from hackers by using a PIN method of access. A stolen wallet is useless without the PIN. Also, many brands on the market offer hardware wallets small enough to carry on a keychain.

You could also research software and desktop wallets.

Beyond figuring out the best kind of wallet for your needs, learn about the handiest ways to use bitcoins. Cryptocurrency exchanges can transfer your earnings into a bank account, while numerous companies offer Bitcoin debit cards you can use at any store that accepts standard debit cards.

4. Cryptocurrency is extremely volatile

One of the primary reasons why newbie investors are so attracted to bitcoins and other types of cryptocurrencies is because they’re characterized by rapid rises in value. A cautionary look at news headlines shows they can also fall as quickly.

The co-founder of the Ethereum cryptocurrency recommends only investing what you can afford to lose and reminds that while traditional currencies generate interest, cryptocurrencies don’t.

One safer-than-average way to invest in bitcoins is to set aside a particular amount of money per month for doing so, the same way you would if budgeting to pay a phone bill. Start small and keep the advice above in mind about not investing in ways that could cause substantial hardships if values drop.

5. Making money as a cryptocurrency miner is harder than it seems

Perhaps you’ve been thinking of using bitcoin to supplement your earnings in another way by becoming a miner. A survey found that 60 percent of cryptocurrency mining operations originate from the higher education sector.

Students are likely attracted to the idea because mining from a dorm room lets students enjoy the facility’s free electricity. However, some campuses say cryptocurrency mining on their college networks is against the rules.

Also, over 3,700 separate attacks involved malware on miners’ computers connected to the college internet system. It seems hackers view college students as easy targets and know university networks are characterized by high, consistent usage, making them extra tempting targets.

Not surprisingly, these obstacles have caused some people who were doubling as cryptocurrency miners while they attended classes to decide that what seemed like a promising moneymaking venture at first has more challenges than expected.

Any investment requires a substantial amount of thought before moving forward. That’s especially true with bitcoin, since it’s a relatively new option compared to traditional currencies.

Taking the time to get thoroughly informed is the best course of action to prevent unnecessary hardships that could negatively impact your grades, ability to concentrate and your resources.