You can start working with digital money with almost any amount. It can be invested in bitcoin and leading altcoins or mining. However, there are more profitable, but also much more risky options.
Bitcoin has gradually evolved from a mysterious toy for wealthy geeks into an investment method that is increasingly being chosen by people who are very far from technology. Some other cryptocurrencies are already able to match it in popularity.
Moreover, new cryptocurrencies appear almost every day, even in entertainment, such as casinos and betting sites. Here you can find the list of Top UK online casinos with bitcoin payments.
And many people get the feeling that cryptocurrencies are the new dominant trend that will soon bury traditional money.
At the same time, many respected economists point out that cryptocurrencies, deprived of the support of large states and banking systems, are just a bubble. And investing in them should be viewed as a gamble.
Any attempt to predict the bitcoin rate is akin to trying to guess the next winning number in roulette.
Some experts call cryptocurrencies a direct and clear threat to the most influential world currency – the US dollar.
It is very likely that the US government may prohibit the use of cryptocurrencies in the foreseeable future.
It would seem that this is nonsense. But analysts point out that during the Great Depression, the United States did not hesitate to take such drastic measures as banning gold.
Doubtful growth
One of the factors spurring the growth of interest in cryptocurrencies is their unrestrained growth. Hundreds of percentages in a couple of years is extremely beneficial for investors.
However, unlike the dollar, which is backed by the power of the American economy and the printing press, there is nothing behind cryptocurrencies. But if nothing happens to the dollar, then cryptocurrencies can collapse at any moment. Bits and bytes on servers located unknown where do not have any confirmed material value.
Tweets of popular influencers on social networks and other factors that are difficult to foresee have a huge impact on the value of Bitcoin and other cryptocurrencies.
Financial analysis tools and other attributes of weighted investment are inapplicable here. From this point of view, cryptocurrencies are pure gambling, a bet on luck.
Lack of idea
Money has a very clear concept. The US government, for example, guarantees certain collateral for the dollar.
Gold and other precious metals have a clear concept – they are in demand as an alternative to money, with constant demand. Talking about cryptocurrencies, there is no clear concept here.
Conclusion
Buying only bitcoin is a mistake, you need to remember the diversification rule. It states that one asset should occupy no more than 10% of the portfolio, explained Andrey Berezin, Managing Partner of Raison Asset Management. According to him, it is risky to make a portfolio only of cryptocurrencies, even if they are different.
All cryptocurrencies should fit within 10% of the investment amount, the rest – stocks, bonds, gold, etc. In absolute numbers, the minimum threshold for investing in a crypt can be at least $10, but the purchase method is important. If an investor buys not a real cryptocurrency, but a derivative instrument from a broker, there is no minimum. If we are talking about buying ETH and BTC, I would recommend counting on at least $ 200 so that commission costs do not cut profitability. In some cases, the minimum wallet commission is $ 10, plus the Ethereum network commission is another $ 15. This already determines the amount of entry.
When you start investing in the crypto market, it is worth considering the following: a strategy when funds are invested in assets with record growth and the promise of quick profits (the DeFi market, for example) carries no less high risks. Conversely, investments in cryptocurrencies with an average percentage of growth (Bitcoin or Ethereum) are less risky, but can bring good returns in the long run. The principle always works: “high percentage of profit – high risk”, “low percentage of profit – moderate risk.
