Minimum amount of money for crypto trading

Minimum amount of money for crypto trading

Contents of this article:

to say unequivocally what the initial deposit of a cryptocurrency trader should be. The amount depends on the goals, knowledge and skills of the trader. Beginners who are just discovering the cryptocurrency sphere should not invest all their free money in crypto, it is very easy to lose a deposit without experience. It is wiser to start with small investments, study the field, train to trade on the stock exchange, risking small amounts.

How much is enough to start trading on the crypto market ?

The cryptocurrency market has the highest volatility among all financial markets, investing in cryptocurrencies and trading entails high risks. A beginner who does not have experience with digital currency should allocate an amount for investment that he is ready to lose without the possibility of a return. By draining a small deposit, you can choose a more effective trading strategy, try again. Having lost a large amount, most likely, you will be disappointed in trading and will not want to return to it.

With only $100, you cannot start earning large sums and make trading the main source of income. With such a deposit, earnings will be minimal. But if you have $100 free, you can try your hand at trading . This amount is enough to understand how positions are opened and closed on the exchange, how the trading floor is arranged and the operations carried out on it. It is optimal to start trading on the exchange with a small deposit and the goal is to keep it at the initial stage. Having managed to save the starting capital, you will be able to increase it, albeit slightly. Only after that it makes sense to invest larger amounts for active trading.

In trading , a good result is a return of 5% of capital. Professional traders earn up to 10% of the capital per month, strictly following the chosen strategy.

Trading with a small initial deposit will bring a barely noticeable income, but it will allow you to master the technical part of trading digital assets, get comfortable on the stock exchange, and choose the right trading strategy .

How not to drain the deposit on the first transactions?

Every newcomer to the crypto market should know about the risk of losing a deposit – this is a common phenomenon. In order to save funds and get the first income, it is worth taking trading seriously, having thought over a plan of action. Follow simple rules:

  • Do not rush to invest in crypto until you have studied popular and promising assets. Find out what capitalization and liquidity are in order to choose the right coins.

  • Make a list of assets you would like to trade. Consider how you can balance your investment portfolio.

  • Make a risk management plan. Determine in advance the amount of the maximum allowable risk for the transaction, it should not exceed 2% of the deposit. It is also worth determining the acceptable risks for one trading day, week and month of trading . The maximum amount of losses for the entire time of trading, which will not become a problem and demotivation , is up to 25% of the deposit.

  • Understand market trends, find out what trends are and how to determine their change.

What does a beginner need to know to start earning on trading ?

Of the variety of ways to make money on cryptocurrency trading brings the greatest income, it is also the most risky. Without experience and knowledge, a novice trader can drain the deposit in the first days on the exchange. To prevent this from happening, trading needs to be learned.

Basic knowledge for a trader:

  • Trading styles and trading strategies , their features, advantages and disadvantages.

  • Technical and fundamental analysis.

  • Rules for investing and choosing digital assets.

  • Passive ways to earn money to increase capital.

  • Money management.

  • Stop- loss and other exchange instruments.

You can get basic knowledge and master skills on your own if you are ready to spend all your free time on it. Faster and more efficient learning with experienced mentors. In Crypto Crew , you will receive the necessary knowledge that will allow you to simply, confidently and with minimal risks start trading cryptocurrency on popular exchanges, gradually increasing your deposit and income.