How Much Should I Invest in Bitcoin to Start?
If this is your first time looking into cryptocurrencies, you might wonder, “Can I start with $100 in Bitcoin?” Yes is the only possible answer. But there are a few things you should know about crypto before you make your first investment. Here’s a closer look at what it looks like for both new and experienced investors to put $100 into Bitcoin today.
Can Beginners Invest in Bitcoin?
Suppose you are a beginner in investing and have never purchased stocks, exchange-traded funds, mutual funds, or other assets (such as a retirement account via your employer). In that case, you may want to avoid Bitcoin for the time being and invest in the stock market instead. The stock market is far more established, having hundreds of years of history and more transparent techniques for determining an asset’s worth.
However, if you have any expertise in investing, you can certainly invest in Bitcoin.
Most exchanges let you set up an account in 10 minutes or less if you know how to use a computer and have all the information you need on hand. Then, it only takes a few minutes to link your bank account, make a deposit, and fund your cryptocurrency exchange account for the first time. Some exchanges let you buy bitcoin and other cryptocurrencies immediately, even if your bank hasn’t yet cleared your deposit.
If all of that sounds too complicated, there’s no reason not to skip this asset class. But if you’re excited about digital currencies and think blockchain technology will be a big part of the future of finance, the risks of Bitcoin may be worth it.
What May Happen if You Invest in Bitcoin
Putting money into Bitcoin is not a sure thing. Things could go well, and you might get your money back ten times or more. On the other hand, you might lose all of your money. I’d like to think that the odds in Bitcoin are better than in Las Vegas, but many of the riskier cryptocurrencies look like gambling.
Unlike government-backed fiat currencies, Bitcoin’s value is not guaranteed by a large organization. It’s important to know that when you buy cryptocurrency, you should only put in what you can afford to lose.
How Much Money Do You Need to Buy Bitcoin?
Bitcoin isn’t hard to invest in, but it should only make up a small part of your portfolio. You don’t have to buy a whole bitcoin at once. Bitcoin is easy to split up into smaller pieces, just like a dollar is split into cents.
Most cryptocurrency exchanges let investors start with a small amount of money. When making a transaction, you may be able to buy as little as two, five, or ten dollars worth of bitcoin. Using the majority of centralized cryptocurrency exchanges, if you have a $1000 portfolio and want to invest 5% of it in Bitcoin, you may easily do so.
To sum up, you don’t need much money to buy Bitcoin. If you’re nervous about buying something for the first time, you might want to start with a small amount, like $5. This lowers your risk and allows you to consider whether it fits your investment goals. If you like it, you can always put more money into it later.
Bitcoin Safety and Security
If you buy bitcoin, it’s important to follow best practices for online safety. That means using a unique, hard-to-guess password on every financial website, like cryptocurrency exchanges, brokerages, banks, credit card companies, and other lenders.
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