Did you know that over the past year, 1 in 10 Americans have invested in cryptocurrency?
Many people think that this digital currency is the future of money. Anonymous, secure, and with fewer international transfer fees, it’s not hard to see why!
But, it’s of course a risk when you invest, so how much should you invest in crypto? How much is smart, and what do you have to put in to see a decent return?
Read on to find out more!
How Much Should You Invest in Crypto As a Minimum?
The minimum you can put into crypto investments is usually decided by the platform you’re buying it on. On some platforms, for example, you can buy Bitcoin and other cryptocurrencies for as little as $2. However, putting that little money into your investment portfolio isn’t necessarily a good idea.
This is because you’re likely to be charged fees when you trade. If you don’t invest enough, the fees can make any profits obsolete! That’s why it’s wise to put in at least around $60 when investing in crypto.
How Much of Your Capital Should You Invest?
Investing strategies should always be careful. No matter how sure you think a cryptocurrency is, never put all of your capital into it! If you’re in beginner in the market, only invest around 5% of your money, to begin with, until you get the hang of it.
Once you understand the ins and outs, you can increase your investment to around 30% of your capital if you want to buy Shiba or other currencies. Working up slowly is a much better way to navigate the crypto world and a lot safer.
If you won’t be prepared to lose all of your investment, don’t invest so much. If you can afford to lose 30% and upwards, go for it! Just be very aware that there are a lot of risks involved and nothing is ever certain in the crypto market.
Read Up On Crypto For Beginners
For anyone entering the investing world, it’s vital that you learn everything you can before you start trading. Read books, watch videos, and talk to people you know who are already investing, asking for their advice. The more you learn about how to invest wisely, the less likely it is that you’ll lose your money!
You might want to rush in, but take a minute to learn first. Trust us, in the long term, you’ll be thankful that you did.
Start Investing in Crypto
Once you’ve read up on investing and have a pretty good grasp on how much should you invest in crypto, it’s time to start putting your money into crypto! This is a super exciting thing to do, but remember to always play it safe and stop when the fun stops.
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