There exists a myth about needing large sums of money (thousands) to invest in and build wealth with cryptocurrencies. This is not accurate as it is possible to start your cryptocurrency investing journey and accumulate wealth from very small amounts of money ($100). All one requires is to have a good plan, the necessary patience, and the understanding of the fundamental aspects of the cryptocurrency ecosystem. Thus, you can convert your very small investments to very large amounts of money over a period of time.
Your first investment of $100 (versus $1,000+) offers numerous benefits! If you are new to investing, starting with small amounts of capital is a smart investing strategy. A small investment helps you obtain positive experience of the cryptocurrency markets without taking on the potentially large risks of losing multiple high amounts of capital (while getting used to the market) when making other types of investments. When investing with a $100 investment, you gain experience investing in other markets which helps to minimize your overall investment losses.
First Step - Create A Crypto : Exchange (Had The Other ;) 🔐
The first step in your crypto investing journey is to open an account with at least one reputable crypto exchange to conduct your buying/selling/holding of digital currencies in a secure manner. Your
Cryptocurrency can be more secure by either storing it in software wallets or hardware wallets, as both kinds of wallets allow you to store your private and public keys in order to do transactions with your cryptocurrency. Because if you lose or have your cryptocurrency stolen from storage, it’s important for you to choose software or hardware wallets with a good level of security for storing your cryptocurrency.
Dollar-Cost Average Method Is the Best Approach to take.
Instead of investing your total investment of $100 in one lump sum, you could consider investing smaller dollar amounts through dollar cost averaging over time—for example—one week $20; one week another $20; etc.
Benefits of Dollar-Cost Averaging Are As Follows:
Helps reduce price fluctuations by smoothing out the extremes of bull and bear market trends’ fluctuations.
Helps to smooth out short-term but volatile price changes in the marketplace (the volatility of the marketplace).
It develops disciplined investing practices over time.
There are TWO (2) primary types of wallets:
Hot (‘online’) Wallets (connected to the internet and are user-friendly).
Cold (‘offline) Wallets (not connected to the internet and are historically more secure for long-term investing).
Cold wallets are usually the most secure method to store cryptocurrency for long-term investment.
Think Long Term When Investing In Crypto,
A typical beginner assumes or expects to have a fast return on their investment. However, most successful investors actually invest for long-term growth. Historically, when you hold quality investments, such as Bitcoin or Ethereum, over several years, you will have high returns through your investment.
A $100 investment in crypto is achievable while creating a learning experience. You can invest in reputable exchanges as well as in projects that have valid use cases. Use good strategies such as dollar cost averaging and focus on growing your investment over time, and you can use even a small amount of funds as the foundation of your overall portfolio!