Today, we will answer the basic question – what is the minimum amount I can invest in Bitcoin?
Bitcoin is a type of virtual currency that was created in 2009. It uses cryptography to secure transactions and control access to its network.
You can invest in bitcoin through exchanges or mining. If you want to invest in bitcoin, you’ll need to decide whether to go long (buy) or short (sell).
The rising Bitcoin price recently has awakened many people to the prospect of investing in bitcoin. You probably want to join in the rush too, and you’re wondering how much to invest in bitcoin?
For starters, You can invest as little as $2 with some crypto exchange platforms like Coinbase.
If you’re planning to make a huge investment or planning to invest your life savings in bitcoins, you should ask yourself the following questions.
What Is the Minimum Amount I Can Invest in Bitcoin?
How Much Loss Are You Willing to Cope With?
Before making that huge investment, you should remember that the cryptocurrency market is a highly volatile market that can cause you to lose more than half of your total investment. At the same time, the coin can flip in your favor, resulting in a massive gain.
You should ask yourself these questions:
- How much loss can I tolerate?
- Will I judge myself so hard if I lose a significant portion of my bitcoin investment?
Bottom line: Invest an amount you feel safe and comfortable with
What Is the Best Time to Invest in Bitcoin?
Timing is an essential factor to consider when investing in bitcoin. The bitcoin market is made of repeated cycles of bullish and bearish market trends. The bearish market trend can last between one to two years, followed by a short period of a market boom when bitcoin price skyrockets to an all-time high before experiencing a sudden price crash.
Before investing in cryptocurrency, do a due diligent search and determine the following:
- Is the market close to an all-time high? (definitely not the best time to buy)
- When was the last bull run?
- Is the present price of bitcoin near its all-time lowest?
Bitcoin price was at an all-time high of $20,000 in January 2018 before crashing to an all-time low at $3,200 in December 2018 (best time to had bought bitcoin in holding). Presently, the price of bitcoin is almost close to $10,000 (a good time to sell). It means the market is currently experiencing a bullish upward trend as it draws closer to its all-time-high. Well, it’s not too late to invest
Bottom line: Buy preferably when the market is down, and sell when the market price is up to give you a wider profit margin, or a higher ROI percentage
Are You Willing to ‘Take Profit’ at a Comfortable Level?
If, as an investor, you bought a bitcoin in August 2017 at $3,200, and four months later, the price rose to $19,000, six times its value. Would you have taken profit at $19000 or hodl your currency and watch it fall back to $3,200 in December 2018 while hoping it will rise again to $19,000?
Bottom line: Know when to take profit
Hope we were able to answer your question – what is the minimum amount I can invest in Bitcoin?
Before making the huge investment decision, determine the best time to invest and do so only with an amount that will not lead you to make decisions based on your feelings and emotions.
For a start, investing $500 to $1000 should yield you a sizeable ROI only if you take profit at a comfortable upper price limit.
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