How to Trade Ethereum with $100

Last Updated March 30th 2022
5 Min Read

The crypto market has rapidly changed over the years, and cryptocurrencies previously used for speculations have evolved to become a real asset class. However, given the rising prices, one could ask themselves whether it is possible to trade with just $100. One of the cryptos that have gained a unique position in the crypto sector is Ethereum. Ethereum is not just any other cryptocurrency, as its network is a game-changer in boosting decentralised finance (DeFi). 

DeFi is when developers come up with systems such as lending and borrowing but in the blockchain context. There are no extra charges that are usually associated with intermediaries such as banks in the traditional financial systems. The fact that DeFi systems ate fast, efficient and cheap has rapidly increased their popularity. 

A large number of DeFi projects are based on Ethereum. Because of this functionality, the value of Ethereum has grown over the years and currently ranks as the largest altcoin. The price of Ethereum at the time of writing is around $3239, and looking at its historical price performance, the coin has achieved an all-time high of $4891. 

The functionality of ether in the DeFi sector has given stability to the coin and has made the coin become one of the most utilised in the crypto sector. However, with its high prices, one can ask whether it is possible to trade Ethereum with just $100. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Should I Invest $100 In Ethereum? 

Many crypto traders would tell you that Ethereum is one of the best trading asset this year.

There are traders from different parts of the world who leverage this space to become richer every day.

Despite Ethereum and other altcoins being new in the market, their innovative nature has boosted adoption and recognition. This has led to major price gains for these coins. Because of the decentralised nature of the crypto sector, it has shown great promise of revamping the financial sector, which has played a great role in triggering interest from new traders. 

Ethereum is one of the cryptocurrencies that investors believe can change the financial sector. Through DeFi, Ethereum has created a platform where developers can offer the exact services that banks offer, but in a cheaper and faster way. Because of Ethereum’s dominance in the crypto space, it makes for an ideal choice if you want to diversify your investment portfolio

Check Out: Will Ethereum Make Me Rich In Ten Years?

Can I Start Trading Ethereum With $100? 

It is 100% possible to start trading Ethereum with as low as $100. There are many trading platforms and regulated brokers globally, and most of these will allow you to create an account with just $100.  

While crypto trading makes a major part of how you can earn from the crypto sector, there are other alternatives you can seek if you do not want the huge risk exposure that comes from investing directly in cryptocurrencies. Other alternatives of investing in Ethereum include mining, gaming, advertising and more. 

However, crypto trading is the most straightforward way of investing in Ethereum. When trading Ethereum, you can choose between two main trading strategies. You can choose to become a day trader or a long-term trader. 

Day trading is when you keep exchanging Ethereum for fiat or other cryptocurrencies during the day as prices change. However, if you are day trading, you need to be cautious of the trading fees charged by different platforms, as this could dent your profits. 

Long-term trading is more suitable for beginner traders because all you have to do is buy Ethereum, create a crypto wallet to store your tokens, and wait until prices increase in the future to sell. Through long-term trading, you avoid costs such as trading fees. It also saves you from the technicalities that come with day trading. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should I Trade Ethereum With $100? 

As mentioned above, it is possible to trade Ethereum with $100. However, this does not necessarily mean that it is a good investment strategy for everyone. If you are considering investing $100 in Ethereum, there are factors you need to consider. 

First, you need to know that investing $100 in Ethereum will not make you rich overnight. Even if you invest a small amount of money, there are great risks from crypto investments. One of the most popular lines in the crypto sector is trading money that you can afford to lose. 

On the other hand, cryptocurrencies are highly volatile. The price of Ethereum can shift randomly without notice. However, with $100, you are spared from immense losses if there is a dip in Ethereum’s prices. While this may be good, you also need to note that with $100, you are also limited as to the profits you will make when prices appreciate.

How To Trade Ethereum With $100 

As much as $100 could be money you are willing to place on Ethereum; you need to equip yourself with other strategies to help you become a better crypto trader. Whether you are investing $100 or $100,000, learning the basics of crypto trading and blockchain technology can help you develop smart trading strategies. 

If you are trading in Ethereum, one of the things you need to exercise is patience. Do not be in a rush to make trades if you are just a new trader. Do your research on technical indicators, price predictions and other tools that can help you analyse Ethereum’s prices. Moreover, you need to practice trading regularly because, with time, you will have mastered all the concepts and become one of the seasoned traders. 

Most importantly, you need to have self-control. The crypto space is ruled by emotions such as fear and greed. If you do not have the self-control to avoid making traders out of emotion, you could end up making massive losses. You should also avoid making traders out of over-confidence. Always take your time before establishing the right entry and exit positions. 

If you are a day trader, it is very easy to get obsessed with the market. You can choose to trade crypto part-time or full-time. However, the method you choose needs to come with a balance to your personal life. Spending all your time making trades is not advisable. Take breaks and relax regularly. Also, ensure trading does not lead to you losing focus on other things. 

Don't Miss: How to Make (or Lose) Money with Ethereum (ETH)?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is Ethereum A Good Investment? 

Now that you know it is possible to invest in Ethereum with $100, the next question is whether Ethereum is a worthy investment. Ethereum is one of the most utilised tokens in the crypto sector because of its dominance in the DeFi sector. This has played a central role in stabilising the prices of Ethereum. 

Besides, blockchain technology is still new, and there is room for adoption. Hence, those who invest early could make huge gains in future when the market becomes mainstream and gains global adoption. 

eToro – The Best Platform To Trade Ethereum

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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