The presence of FOMO, or the fear of missing out, is pretty much the only quality that can be predicted about the very unpredictable cryptocurrency market. As soon as a coin or token reaches its second or third full moon, two camps emerge; those who took advantage of the price increase and those who wish they had. A cryptocurrency exchange, such as Coinbase, is the easiest and most common way for the average person to make a $100 investment in crypto right now.
So, what may happen if you put $100 into cryptocurrencies right now? You could get lucky and make a profit of one hundred percent in a matter of days, or you could sell your coins at the wrong time and end up losing your initial investment. How much you make or lose will depend on your ability as an investor, not just the volatile nature of the crypto market and crypto pricing.
What you need to know when investing $100 in crypto
Your ultimate goal will determine whether or not $100 is sufficient. In the current crypto market conditions, it’s likely that $100 won’t be enough to make a significant profit. It’s fine if you’re just looking to make some money or join the crypto bandwagon, though.
Investing small sums, such as $100, usually results in investors reinvesting their profits rather than cashing out. The early stages of many digital assets, such as Bitcoin and Ethereum, have passed, and it is no longer possible to generate millions of dollars with a ten-dollar investment in some of these assets. If that’s what you’re looking for, you should gamble on the success of new tokens or meme coins.
How should you invest the $100?
Hodl or channel your normal investments into crypto
It’s up to you to decide whether or not $100 invested in cryptocurrency is worth it. It’s best to go with a smaller quantity if you’re just trying out crypto for the first time and don’t expect to make a lot of money.
As long as it is part of a long-term investment strategy, a $100 coin or token may be worth the investment. If the crypto market recovers and prices soar later in the year, you’ll get a return on your investment. There isn’t much to lose if you only invest $100 and not a dollar more, so you don’t have to be concerned about losing your money.
Day trade – if you can
Trading may be a better choice if you’re looking to make a significant amount of money quickly. You have the option of trading Bitcoin or going with one of the lesser cryptocurrencies, which typically see more significant price swings. However, there are some people who can’t afford to risk $100 on a speculative investment because that’s a huge chunk of money for them.
Regardless of how much money you have to invest in cryptocurrency trading, you should spend enough time learning about the intricacies of the market. In order to develop a good trading strategy, one must first acquire proper trade knowledge. You can learn the foundations of cryptocurrencies and blockchain technology through online courses and webinars.
Also, knowledge of historical data and price forecasts, as well as technical indicators, is vital. If you want to take advantage of the best trading opportunities, you need also make it a practice to keep up with the news and any announcements made via social media. Traders may potentially receive free tokens when new crypto forks arise, for example.
Consistency and self-control are also essential for cryptocurrency traders. To be a successful trader, you must be able to regulate your emotions. Greed, anxiety, or arrogance have no place in the realm of trading.
Diversify your portfolio
After learning how to begin trading cryptocurrencies with as little as $100, it’s time to choose which cryptocurrencies you wish to trade. With a market capitalization of more than $1 trillion, there are thousands of cryptocurrencies in existence.
It’s not just Bitcoin and Ethereum that are profitable, but a number of other cryptocurrencies as well. Meme coins like Shiba Inu and Dogecoin have also spawned a few crypto millionaires. However, always be on the lookout for new crypto scams and frauds while dealing with new coins. To prevent being a victim of scammers, a competent trader should know how to identify crypto scams.
Having a diverse portfolio is essential if you want your investments to be able to both generate and absorb market shocks during moments of the downturn. In this case, you could decide to split your $100 capital into four portions: You can buy Bitcoin with $30 and use $25 to buy altcoins such as Ether, Cardano, and Solana, which have their own blockchain. Buy a stablecoin with the $20 from the third component. Finally, spend $25 on meme currencies such as Dogecoin, Dogelon Mars, and Shiba Inu.
In summary
There is little doubt that blockchain technology and virtual currency represent the future of global finance, notwithstanding the current market upheaval. If you have $100 to invest, the advice above can help. The trick is to find out what works best for you by conducting additional market research. There is also the fact that cryptocurrency is very volatile, in spite of the fact that it has the potential to be extremely profitable. Generally, avoid trading or investing in cryptocurrency with money you can’t afford to lose.
