Can You Start Crypto Trading With $100?

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Are you interested in starting to trade cryptocurrency but have a limited budget of only $100? If so, you’ve come to the right place. We are here to guide you through the process of trading crypto with a small amount of money.

Key takeaways:

  • Cryptocurrencies can work just like forex trading. However, in order to use crypto, you’ll need to buy it first.
  • A common way for beginners to trade crypto is to use a crypto exchange, which works much like a stock trading account.
  • You can buy crypto with your bank card on secured payment gateways – it is that easy!

Can investing $100 in Bitcoin make you wealthy?

Well, it depends on when you sell Bitcoin and how much it will rise in the future. For example, if you had bought $100 worth of BTC when the price of a single Bitcoin was $25K and later had sold it when it hit $60K, you would’ve got a $140 profit. However, if you had instead repurchased $100 worth of BTC when it was $2,000, you could’ve made $2,900. Usually, when people invest low amounts, such as $100, they just reinvest their profit into their chosen asset instead of cashing out. Bitcoin is no longer at that stage where you can make millions of dollars by investing as little as $10 in it — if that’s what you’re after, you will be better off betting on the success of random altcoins. If you had invested $100 in Bitcoin when it was around $42K, it would have needed to rise to almost $417 million before you could sell it and make one million dollars. Nevertheless, there’s another method to invest $100 in Bitcoin and grow wealthy – you should do it consistently, much like you would top up your savings account.

On Finteria, you can get started trading crypto for just $10. This simple trading platform makes setting up crypto and stock trading easy. You don’t need zillions of dollars to get started, and you can top up your account as you go. 

What exactly does it mean to trade crypto?

You know how platforms for stocks to invest in work, right? You take your cash, find a broker, deposit funds, and buy the stock. Simple. Buying crypto works in pretty much the same way, but instead of a broker, you’ll use a crypto exchange, which we’ll cover further.

Like buying a stock, there are a few steps to the process. Here’s a quick rundown:

  • Choose a cryptocurrency to invest in: With so many cryptocurrencies available, it can be overwhelming to choose just one. However, it’s important to remember that you can study some of them. Bitcoin and Ethereum are two of the most well-known cryptocurrencies, making up over 60% of the market. Starting with these two is a good option, but your investment goals and research may lead you to a different mix of crypto assets.
  • Decide where to purchase your crypto: Most beginners start with a centralized crypto exchange, such as Finteria. This simple trading platform makes it easy to convert cash to crypto and vice versa. While we’ll discuss decentralized exchanges later, centralized exchanges are the better choice for beginners.
  • Choose how to pay for your crypto purchase: Finteria trading platform allows you to link your bank account or debit card to purchase crypto. However, if you have your external crypto wallet, then you can transfer funds to the address on the Finteria crypto exchange with no commission on the platform’s side. 
  • Decide where to store your crypto: Once you’ve purchased your crypto, you’ll need to decide where to store it. You can either keep it in the Finteria crypto wallet where you made your purchase or in a crypto wallet you control. While a crypto exchange is similar to an online stock brokerage, storing your crypto in your own wallet is safer as it protects you against risks related to crypto exchanges, such as bankruptcy. However, it comes with its own responsibilities, such as safeguarding your wallet’s recovery phrase.

Example of a Crypto Portfolio and its ROI

To illustrate the potential of crypto trading with a small amount of money, let’s consider an example of a diversified portfolio consisting of three cryptocurrencies: Bitcoin, Ethereum, and Dogecoin.

Let’s tackle this case as a forex trader: suppose we invest $100 in equal parts across the three cryptocurrencies. As of March 8th, 2023, the prices of Bitcoin, Ethereum, and Dogecoin are $22,079, $1,558, and $0.073, respectively.

If we were to purchase $33.33 worth of each cryptocurrency, our portfolio would consist of 0.0015 Bitcoin, 0.021 Ethereum, and 453.65 Dogecoin.

Now, let’s assume that we hold onto this portfolio for one year. Over the course of the year, the price of Bitcoin increased by 25%, Ethereum increased by 60%, and Dogecoin increased by 1000%.

As a result, our initial investment of $100 would now be worth $152.04, giving us a return on investment (ROI) of 52.04%.

To sum it up:

It is possible to start trading cryptocurrencies for just $100, but it’s important to approach the market with caution and a long-term perspective. By diversifying your portfolio and doing your research, you can potentially earn a good ROI. However, it’s important to remember that cryptocurrency trading is highly volatile and carries risks, so it’s essential to be prepared for the unexpected.