Bitcoin continues to be one of the most promising types of investment on the planet right now. This digital money is constantly making noise on crypto and financial markets, attracting even more investors from all over the world. Bitcoin has been on the rise since 2009, and now it is only strengthening its position in the world of crypto. If you are still wondering whether this coin is worth your attention, it might be interesting to know that its recent highs allowed many traders to double their returns in less than 6 months.
Many experts believe that Bitcoin will become the most demanding cryptocurrency of the future. Moreover, blockchain technology is almost ready to revolutionize numerous types of financial services. If you are looking for the freshest info on how to become a Bitcoin investor, as well as how much money you would need for these purposes, this post is right what you might need.
This question remains one of the most burning ones. Most crypto professionals consider that the best idea is to invest affordable sums you are not afraid to lose. But what if buying one Bitcoin is unaffordable for you? The fact is that last month, the rate of Bitcoin reached $50,000 so that not many crypto enthusiasts can buy several Bitcoins just at once. Fortunately, you still have a chance to buy this digital coin.
The reason is that you don’t need to pay a full price for the coin to become an investor. You can benefit from using fractional shares for making your purchase. Let’s find out more with an easy example. The price for Bitcoin is $50,000 but you have only $500 to invest. Is it possible? Sure! With the help of fractional shares, you can buy only 0.01 Bitcoin. If the price for this cryptocurrency remains on the rise, the value of your share increases too. Therefore, even in case you buy a minimum amount of Bitcoin, you still have chances to earn good money.
The market of cryptocurrencies has much in common with the stock market. Although it has some peculiarities, the basic operating principles are almost the same. To put it short, you can purchase a particular share and choose a crypto exchange for managing your investments. To pick up the exchange, which would best fit your needs, you can check this review.
There is no minimum sum of money you can spend for buying digital coins. Each exchange has its own rules for making investments. However, most of them allow buying crypto money from $2-$10. Therefore, there is no need to spend all your incomes in order to dive into the world of cryptocurrencies.
However, it is still not recommended to invest with such a limited amount. The fact is that most crypto exchanges have certain fees that might exceed the sum of your investment. This way, purchasing Bitcoin might appear to be inefficient. Most crypto professionals believe that a minimum of $100 is a perfect start for buying crypto coins.
According to the most common practices, a universal solution is to invest from 3% to 25% of the entire capital to Bitcoin. This way, having 5-10% is completely safe, while 25-25% might appear to be a bit risky. However, if you would like to focus on the crypto market, it is possible to sit between 40-55%. Investing 60% and more is considered to be highly risky unless you are an adventurous spirit who is not afraid to lose money.
Anyway, it’s up to you to determine the sum of money to invest in crypto. It is essential to take into account all possible risks, your risk tolerance, experience in investment, and deep understanding of the market.
There are two most common ways you can buy your crypto coins on the preferred exchange. These are ordering from the exchange itself or making a purchase from other users on the platform. If you are searching for the easiest alternative, it might be better to choose the first option.
This way of buying digital coins is amazingly easy. The platform offers you the price for Bitcoin you are expected to pay. If it is okay for you, just choose the amount you would like to buy and proceed with the payment. That’s all!
For those who would like to buy Bitcoin from other investors, the process of making a purchase is likely to be a bit more complex. There are two types of orders you can choose from:
- Market orders. It is possible to purchase Bitcoin from other crypto enthusiasts for the price that was set up by the exchange;
- Limit orders. This way, you can buy crypto coins below the current rate for Bitcoin on the exchange platform.
Let’s describe an example of a limit order. If the value of the Bitcoin is $50,000 but you are ready to pay only $48,000, it is still possible to purchase your crypto coin. You can set a limit buy order for $48,000. This way, your offer will be visible to only those investors who sell a Bitcoin for $48,000 or less.
On one hand, market orders have the same principle as buying goods in your local supermarket – you can buy milk only for a particular price. On the other hand, limit orders are more flexible and allow making a purchase for a sum of money you actually have.
It is also important to note that in case you set a market order, you usually get your coins within seconds. However, buying Bitcoin via limit orders might take you more time.
Buying crypto is always a great solution to diversify your investment portfolio. Although there is much uncertainty in the development of cryptocurrencies, however most smart predictions expect crypto to be on the rise in the foreseeable future. Feel free to choose the sum of money to invest in crypto that will not harm your budget and would become a perfect fit for your investment expectations.
Disclaimer: For informational purposes only. Not to be considered as investment advice.
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