how much to invest in bitcoin to make money
Which is the Best Bitcoin Investing Strategy? Bitcoin should account for 5% to 30% of your whole investment capital. I regard 5% to be extremely safe, and 30% to be quite dangerous. Personally, I spend the majority of my time sitting between 15% and 50% of the time.
This is because I have a gambling background (I used to be a professional poker player) and am used to losing money. I would not advise anyone to invest 50% or more.
In the end, the choice is yours. And, while market conditions play a role, personal characteristics such as risk tolerance and the amount of money you can afford to lose also play a role.
Still, concerned about making a bad decision?
Use these advice while buying your first Bitcoins:
- Even a $10 investment in a bitcoin exchange or broker that we recommend is a good start.
You'll be able to get started and learn more about what it means to invest in cryptocurrencies this way.
- Divide the budget you've set aside and invest it over a period of time - It's up to you whether you want to stay for a month, three months, or twelve months. However, doing so will save you money and prevent you from making costly mistakes.
- Keep in mind that you can always reconsider your decision afterward.
- Choose the finest Bitcoin buying platforms.
When selecting how much to invest in Bitcoin and the best approach to invest in Bitcoin, there are five aspects to consider.
- Risk Tolerance:
The cryptocurrency market is quite volatile.
So, when deciding how much to invest in Bitcoin, consider an amount that you are willing to lose completely.
Think about how much money you wish to invest. Consider the following sum and envision yourself in the future:
- Will you be okay with losing your entire investment?
- Will you hold yourself to a higher standard because you choose to invest? Will you be unable to sleep or may be thinking about suicide?
If you answered "maybe yes" to any of these questions, you should reduce the amount you planned to spend and re-ask yourself the same questions. If you're not sure, ask your friends and family for help.
Investors who put too much money into stock will be tempted to sell at a loss in a panic. Selling at a loss can be a good move on occasion, but only if the decision is based on logic rather than emotion.
Maintain a level of funding that does not limit your ability to make sound decisions.
- Profit Tolerance:
Although it may appear to be foolish advice at first, consider this: if you invest an amount that will cause you great mental distress if you lose it, what will happen if you multiply your money by 20?
Many investors experienced this in late 2017 when cryptocurrency was rising. They became millionaires as a result of their blunder in investing their life resources.
Do you think they sold their positions and seized their winnings if they were too greedy to be rational about their investment? So, plainly, this isn't the ideal approach to invest in Bitcoin. During the 2018 market crisis, the majority of them returned to their previous positions.
With Bitcoin and cryptocurrencies, only the most cautious investors make money.
So, think about how much you want to invest once more. What will you do if it's worth 20 times its original value in a year?
- Will you be able to rent a larger apartment? Invest in a high-end vehicle?
- Will you fall in love with your digital assets and keep them till you die?
So, what can you go into making a Bitcoin investment? Investing an amount that you will feel emotionally distant from, regardless of whether your assets rise or fall, is critical. It will help you become a more reliable investor who will lose less money when the market falls and profit more when the market rises.
- Timing:
I'm sure you've heard a lot more about cryptocurrencies when Bitcoin's price was rising than when it was falling or stabilising. This is due to the inherent tendency of people and the media to follow existing trends.
Do you realise, however, that the bitcoin market is made up of market cycles that repeat themselves? These market cycles might span anywhere from one to two years. Prices skyrocket, resulting in price bubbles. LARGE bubbles Then these bubbles burst in a big way.
This is why, in the cryptocurrency world, timing is everything. It has the potential to completely transform your journey and the way you view it.
As a result, look at where we are today in these market cycles when selecting how much to invest in Bitcoin, and you will find the ideal approach to invest in Bitcoin.
To find this information, go to CoinMarketCap's global market chart. Examine it carefully and respond to the following questions:
- Are we on the verge of a market all-time high?
- When was the last time we saw a market rally?
The less you want to invest the closer we get to the market's all-time high, both in terms of price and time. If the current price is $5,000 and the peak price was $20,000 two years ago, it would appear that now is a better time to invest in Bitcoin.
Don't get individual wrong: even though we're in the midst of a price rise, investing in cryptocurrencies right now is a good choice because it gets you started. The time should just alter your entry strategy and reduce/increase the amount you originally planned.
- Change of mind:
I've never seen a cryptocurrency investor say, "I'm going to invest $X in cryptocurrencies," and then follow through on that promise. People alter their ideas by nature, and this is amplified when presented with a constantly changing market.
So, before you make a final decision on how much to invest in Bitcoin, give yourself some leeway in case you change your mind later. The simplest way to do this is to spread your investment out over time. Set aside a certain amount of money and invest it within the next three, six, or twelve months.
- Diversification:
Diversification is a strategy used by experienced investors to decrease the impact of luck. It implies that you would not just invest in cryptocurrencies but will also diversify your portfolio with real estate, stocks, and gold.
Overall, don't put all your bitcoin eggs in one basket. It'd be like playing martingale roulette. You'll keep winning, but if you lose, you'll lose everything.
What is the smallest amount of bitcoin you can invest?
To get started, you don't need to acquire a certain amount of Bitcoin. The sole need is that you meet the minimum established by the platform where you'll buy your first Bitcoins. Coinbase, for example, allows you to invest as little as $2 in Bitcoin.
However, because exchange platforms charge fees for buying, trading, and transferring cryptocurrency, I do not recommend purchasing such a small amount of Bitcoin. If you choose to invest the bare minimum, these costs will swiftly deplete your funds.
Overall, Experts recommend investing at least $50, even if you can invest less. This should be your Bitcoin buy the minimum.
