One might ask if it is possible to trade Bitcoin with only $100. Considering the high BTC prices of around $41,750 at the time of writing, most new traders fail to add Bitcoin to their portfolio because they consider it impossible to trade Bitcoin with only $100.
Firstly, most exchange platforms will allow you to create an exchange account for only $100. Hence, you do not need to be a millionaire to get started in BTC or other crypto investments. With just $100, you can start building your investment portfolio.
Despite crypto investments being marked with several misconceptions, an experienced trader who has been in this sector can tell you that it is lucrative. However, like with other investments, crypto trading is highly risky, and prices are more volatile than other asset classes such as stocks. What makes cryptocurrencies a futuristic investment is that they are based on blockchain technology, making transactions secure, fast and cheaper.
If you want to add Bitcoin to your investment portfolio and only have $100, this guide will give you all the needed details.
Can I Start Trading Bitcoin with $100
It is possible to start trading Bitcoin with $100. All you need to do is look for a regulated broker that will allow you to create an account with $100.
If you do not want to trade crypto, there are other major ways to earn from the crypto sector with just $100. You can engage in blockchain development, Initial Coin Offerings (ICOs), crypto gaming, Bitcoin mining, advertising and more. However, crypto trading is the most popular and the easiest method of investing in Bitcoin.
There are several factors you need to consider before investing in crypto trading. Trading Bitcoin can come in three ways; whether long-term investing, trading Contracts for Difference (CFDs) or day trading.
Cryptocurrencies are highly volatile, which makes them ideal for trading. However, to get started with day trading, you need to be active in the market and research the best strategies.
If you are a beginner trader, long-term investments can be more suitable. With long-term investments, you only have to buy Bitcoin, place the coins in a crypto wallet, wait for prices to increase before selling. On the other hand, CFDs are great if you want exposure to crypto because they allow you to invest without owning crypto.
With the investment choices available in the crypto market, it is very much possible for you to start investing with only $100.
Check out: Pros and Cons of Investing in Bitcoin
Should I Trade Bitcoin with $100
As much as we have expounded on how possible it is to trade Bitcoin with $100, you need to consider several factors before investing with just $100.
Firstly, you need to disregard the misconceptions that crypto trading can make you rich overnight. You need to assess the financial risks that come with crypto investments before diving into this space. One of the golden rules in investing is not spending more than 1% of your account balance on a single trade. Hence, you should trade money that you can afford to lose.
Crypto trading can also be highly volatile, and without the right trading strategies, you can find yourself broke and back to square one. Opening an account with only $100 will help you avoid making huge losses. However, you need to consider the trading fees charged by exchange platforms, which could deplete your savings.
More importantly, you need to know that while investing with $100 means your losses will be small; it also means that your profits will also be small. With small profits, you could be tempted to overtrade or add more funds to your account out of greed and dissatisfaction. Hence, before opening your account with $100, be prepared for the volatility, risk, profits and losses that come with cryptocurrency investments.
How to Trade Bitcoin with $100
If you have decided it is worth it to trade Bitcoin with $100, you also need to assess your preparedness to enter the world of cryptocurrencies. Before buying Bitcoin, you need to research the market to help you become a better trader. Some online platforms offer educational guides that are helpful to beginners.
You also need to master the art of patience by constantly learning new strategies before making any big investments. As the saying goes, “practice makes perfect.” If you do it long enough, you will identify the right entry and exit positions.
Expert traders used charts, price predictions, technical indicators and assessed historical performance before making trades. Following various developments about the Bitcoin ecosystem could also help you predict market performance.
Last but not least, it is easy to become obsessed with crypto trading. While crypto trading is different from gambling, you can find yourself immersed in it; hence, you need to find a balance when you need to place or stop a trade. If you are day trading, be sure to take breaks every once in a while.
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Is Bitcoin a Good Investment?
Now that you know that you can invest in Bitcoin with $100, you need to ask yourself if Bitcoin is a good investment. Cryptocurrencies are a fairly new concept, but they have taken the world by storm in the last ten years. When Bitcoin was created in 2009, it was clouded with many misconceptions and a lack of trust. However, it has become adopted by global financial firms and has reshaped the financial sector.
Bitcoin’s market cap is almost touching 830 billion. Besides, it has been endorsed as an asset class by major financial firms like JPMorgan and Goldman Sachs. These factors give Bitcoin an edge over other cryptocurrencies in the market.
Most importantly, Bitcoin is the primary cryptocurrency and the longest-serving. It has been around for a while, making it a safer option for those who want to venture into crypto trading. Government regulations are also changing to accommodate Bitcoin, and other crypto investments shed light on their positive future. Considering these factors, investing in Bitcoin is a wise strategy, but you have to be prepared for volatility.
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Virtual currencies are highly volatile. Your capital is at risk.