Can I Invest As Little As $100 In Cryptocurrency In 2021?

Cryptocurrency gained wide attention and popularity when one single Bitcoin’s value of $0.0008 turned into thousands of dollars in 2013. Cryptocurrency in 2021 is evolving and more coins are entering into the market. Investing in cryptocurrency is one of the best passive income sources to investors and traders. 

However, the crypto market is a volatile and risky trade. Traders and investors are always warned that any amount of money they invest is always at the risk of being lost. 

If you are one of those people who are curious about cryptocurrency, your first question might be about the amount to invest as a start. There is really no minimum amount to start. The golden rule is to spend only a certain amount that you can afford to lose. 

If you are planning to buy cryptocurrency in 2021 with $100, do your research diligently. Don’t put everything on a single coin. You can diversify your portfolio and distribute your $100 in a range of coins. 

The market is volatile, you can lose the money in just a second. If you invest $100 in a single coin and its market crashes at this hour, your money is now lost. 

Join in cryptocurrency forums to gain insights about the most profitable coins in the market. Find a good market exchange that will suit your needs the most, taking into account the payment options and the ease of trading interface.

Here are the top 3 cryptocurrencies this year according to Forbes:

1. Bitcoin (BTC) 

2. Ethereum (ETH)

3. Binance Coin (BNB)

Here are some calculations from CoinJournal:

If you invested $100 in Bitcoin on August 24, 2020, your money would have turned $411.80 today. 

If you invested $100 in Bitcoin on August 24, 2020, your money would have turned $792.67 today.

If you invested $100 in Binance on August 24, 2020, your money would have turned $2,119.06 today.

If the market remains as it is from 2020 until today, you can invest $100 today and expect to gain these estimates after a year.

Take note that day trading is different from long-term investment in cryptocurrency. In day trading, the trader buys a coin at its lowest market price at a certain time of the day. The trader monitors the price movement all day so when the coin hits a higher price, he will immediately sell the coin at that moment. It’s riskier because the trader usually invests his money on more volatile coins which can fall and crash at any time.

Yes, you can start day trading with only a hundred dollars. The return of investment will not be as high as that invested in the long-term one. However, the profit (if there is any) is quickly realized at the end of the day, as compared to the long-term strategy.

It’s a wise move to start in cryptocurrency with only a small amount of money. Familiarize yourself first with the market as you trade your first hundred dollars. Take lessons if you want to take cryptocurrency seriously. Most importantly, don’t lose hope if your first trade did not have any returns. You will get there eventually after practice and a deeper understanding on how the market works.