New investors often ask how much they should invest in a particular investment. The amount depends on many factors—the minimum deposit requirements of your broker, the amount you can afford to lose, the minimum trade amount per portfolio, and so on. So, if you are planning to invest in crypto, you also need to know how much is going to be your budget. I’m going to break down some factors that will affect the amount you are to invest.
For those who are yet to put their money in cryptocurrencies like Bitcoin, Ethereum, and ADA, here’s how much you should allocate and invest.
When you look for a broker, don’t forget to choose the one that has the lowest minimum deposit required, especially if you are on a budget. Some brokers will require you to deposit at least $200 before you can start. There are also generous ones that only ask for $50 or $100. If you are on a budget and you don’t have that much savings, I suggest you choose a broker that won’t require a deposit beyond your means. In this scenario, if your budget is only 5,000 pesos to start investing in crypto, look for a broker that only requires at least $100. To invest in Cryptocurrencies click here.
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This is not just applicable to cryptocurrencies, but in all types of investment. You have to make sure that what you are investing is the amount you can afford to lose. Meaning, you can’t invest your emergency funds, your tuition fees, your monthly budget, and so on because there’s always a risk that you will lose. So, if you can only afford to lose 10,000 for now, that’s enough to start investing in crypto. Don’t be too greedy and gamble the money that will feed your family. When investing, you don’t need a big amount of money. As long as you have something to start with, that will do good for you already.
The minimum trade per crypto will depend on your broker. For example, in eToro, the minimum amount to start trading or investing crypto is $50. If your budget is only $100, this means that you can only choose at least 2 cryptocurrencies where you can invest. That’s fine. You don’t need a lot of cryptocurrencies when you are starting. You can increase your investment later on. There are also some brokers that allow less than $50. Before you create an account with the broker you chose, make sure that you read the terms and conditions regarding trading. To open a crypto broker click here.
Investing in crypto doesn’t require a lot of money. You don’t need millions. You don’t need to be a super rich investor. In fact, you can start investing with less than 10,000 pesos. Just remember the things you should find when looking for a broker—the minimum deposit required and minimum trade per crypto. Don’t forget to consider your risk tolerance as well. With all of that taken into account, you will be able to trade in crypto with low risk. To trade Bitcoin click this.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.