Contents of this article:
Anyone can earn on cryptocurrency if he chooses the right strategy and, of course, invests his own funds. The advantage of cryptocurrencies is that you do not need serious investments to start trading. The entry threshold for crypto trading is quite low and accessible to most people. Let’s talk about the minimum amount of money that you need to buy cryptocurrency on the exchange and start trading.
How to start buying cryptocurrency and how to calculate the starting amount?You need to decide on the type of assets that you will use to understand how much you can start investing in cryptocurrency. The higher the rate of the crypto against the dollar is – the more investments will be required. You need to buy several lots, and not just one, to earn money, since the profit from it will be significant.
Think over your trading strategy in advance. The more often you open transactions, the less money you need to start, because each transaction will bring you small income, and in total it will allow you to get the first significant profit.
You also should choose the number of transactions. The security deposit should be larger if there are many of them. Beginners should not open more than two transactions at the same time to get by with a small deposit and make it easier to control processes.
How much money do you need to start investing?
Investing in cryptocurrency is not trading at all, it means only buying an asset. The minimum amount to buy cryptocurrency on Binance is only 500 UAH, for example. You can buy bitcoin, ethereum or another coin with a credit or debit card simply by registering on the exchange.
The minimum amount to buy cryptocurrency on Binance is not enough for trading and earning, of course. Even if you are ready to invest 100 dollars, but not 500 hryvnias, you should not rush to trade. It is better to invest them in a promising cryptocurrency for a long time, or save up more before you start playing on the stock exchange.
The larger is the deposit, the higher is the chances of earning
Experts believe that the minimum amount to buy cryptocurrency and start trading is only $1,000. It’s a pity to lose $1,000, and it’s already more interesting to work with this amount unlike 500 hryvnia, which is enough to buy a meager share of bitcoin.
The larger the deposit, the higher is the chances for successful implementation of risk management. Firstly, it allows you to diversify your wallet, so as to have assets in different cryptocurrencies. Secondly, the less percent of the deposit falls on an open transaction, the lower is the risk of losing all capital in case of failure.
Tips for beginners
Do you want to trade cryptocurrency and earn money? Choose a trusted exchange, register there, make a deposit and build a trading strategy. The right tactics will allow you to start earning in a few weeks confidently and without high risks.
In order not to lose your investment follow a few simple rules:
- Follow the chosen strategy. Do not open a deal, trusting only your intuition. Always pay attention to the state of the market, and analyze it.
- Use money management rules. Allocate funds for investment so that incur minimal losses in case of failure. Invest no more than 5% of your available capital in one transaction and it is better even less.
- Don’t forget about moderation. Open a fixed number of transactions during the trading session, no matter what result they bring. The desire to make up losses or earn more can cost you a deposit.
Trading requires not only initial capital but also knowledge. Develop and immerse yourself in the topic, learn to analyze to trade successfully and not lose money. Can’t you manage on your own because you get lost and don’t you have time to follow trends? Find like-minded people and support from them! You will understand the intricacies of the cryptocurrency market quickly and make a minimum of mistakes by studying with the team. The Сrypto Сrew team will always help a beginner to become more confident and start earning money, having a minimum amount to buy cryptocurrency.