The world of cryptocurrency is pretty uncertain. We all know that. What we also know is that it’s really fruitful, if one knows how to invest smartly, how to make great strategies and how to stay up-to-date with all the changes on the market.
With an ever-evolving marketplace that is not local anymore nor limited to certain parts of the world, but rather a global environment, it’s accessible more than ever to indulge in the world of Bitcoin, Ethereum, dogecoin, etc. But what does indulging in this world actually mean?
For people who have invested in crypto for quite a while, this is very clear. However, for newbies, so much information and so many choices can seem overwhelming. If you Google how to invest in crypto, how much money to invest in crypto or what currency to invest in, you will get not thousands but rather millions of search results, websites, blogs, forums, videos and other materials such as courses and tutorials on how to do all that.
It’s really easy to get lost in so much information and advice. As you can see, we know a lot about cryptocurrencies in 2024, but there are a lot of things we still don’t know. Luckily, with the right sources of information, you can learn almost anything about cryptocurrencies and this whole branch of the economy, because they have become a part of the global economy and a strong financial instrument in the hands of many people.
One of the first questions, when people are getting started with investing in crypto, is the question about the amount of money they should invest. When it comes to the amount of your initial investment and all the other investments that you’re going to make later, there are several factors you need to consider. Let’s dive into it:
First of all, you need to be aware of the level of your knowledge and your trading skills in general, as well as your understanding of this topic and all the relevant information when it comes to it. Why is this important?
The answer is simple: the more you know about the crypto market, the easier will be for you to actually make money or to get valuable assets that could potentially bring you money, which is the better mindset in every case. This means that if you have armed yourself with a lot of knowledge that you found in courses, tutorials and other reputable sources – you don’t have to start with extremely small investments to get skilled (although this is something that people usually tell you to do when you’re a newbie).
If you know how to analyze the market and you know how to make predictions, you can pick the right time and invest whatever amount of money you were planning on investing in the first place. Determining the right timing is one of the most important factors when it comes to investing of any kind, and especially investing in crypto because this is a very volatile market (as you’re probably aware of).
On the other hand, if you’re lacking in knowledge and skills in this field, it would not be advisable for you to make big investments at the very start, because you will not be able to see how everything works without spending all your money in one place. Since one of the best tips for crypto investing is to diversify your portfolio, investing everything you have in what you thought is going to be a good investment, doesn’t seem to make sense. Especially if you were wrong.
Maybe you’ve heard about a new cryptocurrency that just appeared in the market and you’ve seen a celebrity giving an interview about how it’s going to become the new biggest thing in the crypto world. The next thing you do – you invest in that cryptocurrency and it turns out you never earned any money from it. This is why you need to rely on your knowledge first and then everything else.
The second factor that needs to be taken into consideration is the purpose of your crypto journey. Do you want to make a living out of it? Are you just curious about how this works and you want to explore things by investing the smallest amounts possible? Are you thrilled by how blockchain works and you wanna start your journey by investing and maybe end up creating another stream of income?
Finally, maybe you just wanna tell your friends that you own some Bitcoins, which might be a good topic when you’re with a bunch of your friends. After all, this is one of the hottest topics right now.
As you can tell, there are multiple reasons why one could invest in crypto. Your goals dictate the approach you’re going to take. No matter what your goal is, you need to have good bankroll management skills and a detailed plan on how to become successful in this field. This means starting slowly, making smart investments and making sure your assets grow over time, because this means that your profit will grow as well.
When it comes to specific amounts, this depends on the platform or the trading exchange you are planning on using when trading cryptocurrencies. That being said, trading actually means buying and selling crypto. There are around 2,000 different cryptocurrencies on the market, but you will probably want to become a part of Bitcoin or ETH investors. NFTs or nonfungible tokens are also a popular thing right now and you’re also going to need some money if you’re interested in investing in this digital type of art, music or video.
Since one bitcoin is made out of 100 million of satoshis, which are coins, you can make really, really small investments that are under $1. However, this is not possible on all the platforms, nor would it be the smartest thing to do.
Research shows that the smallest amount you can invest is around 2 or 3 dollars but this wouldn’t be such a good idea either, because no matter what trading platform you choose, you can expect to have certain fees and you don’t want your fees to be bigger than your investment – it just doesn’t make sense.
A rational thing to do would be to start with investments that are around 10 or $20 and then accumulate coins over time. With these amounts you cannot be that wrong, you will be able to see if you’ve chosen the right platform and if the fees are too high or just fine. Read more here. Finally, the last thing you should pay attention to are the above mentioned fees, because they are different on every trading platform out there. Good luck!
