When you come across Bitcoin's record highs, with a unit in the tens of thousands of dollars, you might feel discouraged from investing, because you would have a very small amount of money available.
If you think this is impossible to do, this article will change your mind.
Unlike what happens in traditional markets, which tend to only offer better products to higher-income customers, the crypto sector offers opportunities for all types of investors, including those who are starting with small amounts.
With proper planning and investment strategies, anyone can start their journey in the cryptocurrency market safely and gradually.
Doubts? Then keep reading this article.
Before you start investing, what do you need to consider?
Before even taking the first step when it comes to investing in cryptocurrencies, it is essential to understand some key points to avoid impulsive or ill-informed decisions that can result in financial losses.
Some of these points are:
Know the risk: The cryptocurrency market is known for its extreme volatility, which means that in this market, the value of an asset can rise or fall quickly, allowing you to have the possibility of both making and losing money very quickly. Therefore, be prepared for this reality and remember to never invest more than you can afford to lose;
Do your own research (DYOR): It is extremely important to inform yourself about the currency you want to invest in. There are thousands of crypto assets available on the market, each with different characteristics and purposes. Evaluate the project behind the currency, its technology, team, long-term vision and, of course, whether you align with all of these purposes, to identify whether or not it is worth investing in that token;
Understand transaction costs: Regardless of how you choose to buy cryptocurrency, be aware that some blockchain networks may have higher transaction fees, which can ultimately affect the value of a small investment. Look for networks with lower fees, such as Solana or BNB Chain, to optimize the use of your capital when investing with small resources;
Choose a reliable exchange: The platform where you will carry out cryptocurrency buying and selling operations needs to be reliable, transparent and have support in case of doubts - Binance is a great option, by the way. Another relevant aspect at this point is to make sure that the exchange has security measures, such as two-factor authentication (2FA) to protect your account;
Diversify, this is very important: Putting all your money in a single asset increases risk, especially in a market as volatile as crypto. This becomes even more complicated when the asset is small: not diversifying becomes even riskier. Consider dividing your investment into different cryptocurrencies to minimize possible losses and have a greater chance of return.
All of these precautions are important because, despite what you may have heard (usually coming from someone unfamiliar with the sector), cryptocurrencies are not mere bets.
The money you invest in them can be lost, but the thing doesn't work like a huge casino, it's more like a huge, global stock exchange.
How to start investing in cryptocurrencies with little money?
After presenting some necessary precautions, we will now tell you in practical terms how you can start investing in cryptocurrencies with little money:
1. Choose low-cost cryptocurrencies with growth potential
There are many cryptocurrencies available that have a low price tag and still have the potential to appreciate in value in the long term. Examples include coins like Cardano (ADA), VeChain (VET) and Stellar (XLM), which are generally priced much lower than Bitcoin or Ethereum.
Remember to study these currencies before investing, evaluating what experts say about the future of each one and doing your own research to find out if that investment suits your profile.
2. Invest in fractional investment
Unlike what happens in the stock market, where you can only buy lots of shares or individual shares, in the case of the cryptocurrency market it is possible to buy fractions of units of a digital currency.
Looking at Bitcoin, for example, whose smallest fraction is a Satoshi, you can spend a much smaller amount than the currency's price to have some of it with you. Oh, and it's worth noting: one Bitcoin is equivalent to 100 million Satoshis, so you can actually buy a very small amount (and, therefore, start with little money).
3. Use consistent investment strategies
Remember that classic scene from the movie Alice in Wonderland where the main character asks a cat which way to go, says she doesn't know where she's going, and hears him say, "Any way will do"? So: in any investment you make, if you don't have a path and a strategy in mind, you'll go anywhere and be at the mercy of market movements. In a market with extremely high volatility, this is a huge risk.
A possible strategy (and quite popular among small investors) to use is DCA (Dollar Cost Averaging), which consists of investing a fixed amount at regular intervals, such as weekly or monthly, instead of investing everything at once. This helps reduce the impact of price changes by spreading out the average purchase cost.
4. Take advantage of incentives and rewards programs that pay in crypto
Some exchanges and platforms offer bonuses for new users, cashback programs and even cryptocurrency rewards for each transaction made.
On Binance, for example, you can earn rewards by staking small amounts of certain coins. These small gains, if accumulated over time, will most likely help increase the value of your portfolio without additional investment.
5. Secure your crypto wallet
Security is essential in the crypto world, especially for beginners, because these users are the ones most likely to be exposed to scams. Use a reliable wallet, preferably a cold (offline) wallet, to store your assets.
Cold wallets are an excellent option for securing your cryptocurrencies in the long term, although they do come with an initial cost. If you prefer a digital wallet, use Web3 wallet services from secure companies like Binance Web3 Wallet, which guarantees the protection of your crypto.
See? There really is a way to invest in cryptos with little money!
Investing in cryptocurrencies with little money is possible and can be advantageous if you adopt a careful and disciplined approach, taking into account all the points we show you in this article.
Remember to diversify your investments, study each asset before purchasing it and take advantage of strategies such as DCA.
Even more important than all of this, never forget the security of your assets: choose reliable exchanges, protect your keys and always be aware of new knowledge in the market. With patience and planning, even a small capital can yield good results in the world of cryptocurrencies.
If you know someone who thinks this is impossible, be sure to send them this article!
#criptomoeda #InvestirComResponsabilidade
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Photo by carlos.pintau, available on Freepik
