Do you plan on entering the cryptocurrency market? Whether you’re new to investing or not, there’s no question that cryptocurrencies are one of the hottest investment vehicles right now. You probably know that Bitcoin and other virtual coins have seen an incredible rise in value over the past year.
However, many people think twice about investing in cryptocurrencies because it comes with a high level of risk. But if you want to test the waters, there’s no reason not to start with a small capital first.
Here are some tips to help you get started with cryptocurrency trading without shelling out big bucks.
1. Play It Safe
Most beginners in the world of cryptocurrency do not want to lose money. In reality, though, you just have to accept that there will be losses from time to time. But there’s a way to minimize risks. One is by playing it safe, which means putting your money in the most stable digital coins such as Bitcoin and Ethereum. Aside from their stability, these coins are also the most trusted in the market.
If you only have $100 to invest, you may want to split it between the two aforementioned coins. You can also set aside a bit of cash so you can invest in altcoins which show a huge growth potential. The beauty of this strategy is that you can pretty much rest assured that you’ll have most of your money safe while still having enough to explore less popular coins.
2. Investing Short-Term
Do you want to know whether you can really make money in cryptocurrency trading in a short time? If so, investing for the short term is worth a try. As a beginner, you need to keep in mind that the cryptocurrency market is extremely volatile. However, you can use this to your advantage by cashing out as soon as you see an increase in price.
For example, it’s not uncommon to see Bitcoin’s value increase by 10% in a day. This means that if you have $100 worth of Bitcoin and then its value goes up by 10%, you earn $10. You need to pay the associated feed so your profit is really less than that, but you still earn money at the end of the day. You can also use a trading software like Bitcoin Loophole to automate this process.
3. Investing Long-Term
Some people don’t like making trades regularly. If you belong to this group, then it’s best to invest in your cryptocurrency of choice and hold it for the long term. This is an easy strategy since you don’t have to do anything other than wait for the price to increase. It might seem like a lazy strategy, but it definitely works. Just imagine investing in Bitcoin in January last year when its value was at $1,000. If you haven’t done anything until now, your investment has grown about 8 to 9 times. That’s pretty good for not doing any trades at all.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.
If you are interested in even more cryptocurrency-related articles and information from us here at Bit Rebels then we have a lot to choose from.