First of all, there is no minimum amount universally required for anyone to invest in Bitcoin.
Do you know what it takes to become a successful investor in everything you do, while in pursuit of money?
It only takes the zeal to start investing now and avoiding procrastination of any sort!
When I first started investing in cryptocurrency way back then, I was not opportuned to have a mentor, so a lot of costly mistakes were made along the line.
This is why I’ll share my experience, and also give you advice on how much you should invest in Bitcoin, as well as guide you on how to ease the process of getting started.
Note: Since you are thinking about investing in cryptocurrency, I’ll recommend you use a safe crypto wallet, which Ledger Nano X hardware wallet happens to be the best among many of them in the market.
The secret that wealthy people have is that, they do not earn to save alone, they always invest their money in different assets to make passive income.
You can work all your life to earn active income, but the only wealth that lasts over time comes from your passive income – trust me.
Whenever your passive income surpasses your expenses, you can stop working 9-5 and still be making money, even if you get sick, or decide to travel around the world.
Smart people generally dedicate over 50% of their capital to invest in various assets (especially digital assets).
On the other hand, you shouldn’t over the board in the course of investment, so you must only invest what you can afford to loose at your current level of financial status.
Don’t borrow money to invest, unless it’s a real safe investment that will pay for itself from its interest, and the case with crypto-coins are not the same.
So don’t borrow money to invest in cryptocurrencies, nor invest more than you can afford to lose.
Now that you understand some of the basics to Bitcoin and cryptocurrency investment, let me talk about the factors that determine how much minimum amount you can invest.
Shall we?
Minimum Bitcoin investment factors
Now, let’s dive into my cryptocurrency related recommendations, and specific factors you should consider when deciding how much to invest in Bitcoin.
1. Loss tolerance
The crypto market is very volatile. Of course, I believe in the future of cryptocurrency, but the future of Bitcoin and Altcoin is still very unpredictable.
So, when thinking about how much you should invest in Bitcoin, think of an amount that you feel comfortable losing entirely.
Investors who invest huge money will also be tempted to ‘panic sell’ at a loss. Though sometimes, selling at a little loss can be right decision, but only if the decision is rational and not emotional.
Try to always keep the amount you invest in cryptocurrency at a level, where it will not affect your financial judgment.
2. Profit tolerance
This particular advice may seem stupid, but if you invest an amount that can get you emotional when you lose it, what will happen if make up-to x20 profit on your investment?
But… The ‘Staunch (a.k.a Mr. KingsHOK)!
Isn’t that the major plan and reason why I invested my money in the first place?!
Yes of course… I know!
But this happened to a lot of investors back in 2017, when cryptocurrency was booming. They became millionaires, because they made the decision to invest their life savings.
If they were too greedy to be reasonable about their investment, do you think they sold their positions and took their profits?
Not at all.
Most of them went back where they were during the 2018 market crash.
It’s only reasonable investors that profit from investing in Bitcoin and some other cryptocurrencies in the market. Investing an amount you’ll feel comfortable with, is essential – whether your assets go up or down.
It will make you a solid investor that will lose less money when the market goes down, and profit more when it goes up.
3. Change of mind
When deciding the minimum amount to invest in Bitcoin finally, always leave room to change your mind in the future, as the market movement is constantly changing with time.
The best way to go about this, is to divide your investment into proportions. Set the amount you have in mind, and invest it within the next 3, 6 or 12 months futuristic timing.
Investing progressively will allow you to know yourself better, before putting huge amounts in the crypto game, and that will also lead to a better decision making.
4. Investment timing
I can bet you heard about cryptocurrencies, when Bitcoin’s price was booming, as opposed as to when it declined, or stabilized (which is popularly known as Crypto Market Correction).
This is because of people and media alike have a natural tendency to follow existing trends.
The cryptocurrency market is very volatile, and that is the reason why sometimes you hear that Bitcoin price is increasing, then after a while, you will hear that is has fallen.
Timing the market properly, using both fundamental and technical analysis is very essential, as it can completely change your crypto investment journey.
5. Diversification
Bitcoin and other cryptocurrencies are uniquely volatile in their own ways, unlike the stocks and Gold which are correlated together.
To minimize the risk, you should include different coins in your investment portfolio, by investing not only in Bitcoin (BTC), but other crypto assets like; Ethereum (ETH), Ripple (XRP), Litecoin (LTC) etc.
Bitcoin and cryptocurrencies are uncorrelated (i.e. they move on their own without connecting stocks, bonds, etc.), so diversifying your investment capital on different is a smart strategy.
This is why Bitcoin is a good investment after all.
Diversification is a technique mature investor uses to reduce the importance of luck. It means you will not only invest in digital assets like cryptocurrency, but also allocate capital to different investment vehicles, such as real estate, stocks or Gold.
You can also leave some of your money at your bank to earn a small interest rate. That’s a bad decision in terms of interests, but it will secure your portfolio.
6. Investment platform
In most cases, the minimum Bitcoin investment amount is determined by the platform, which you decided to invest the currency that you are using.
For Bitcoin cryptocurrency, the minimum amount you can probably buy is 1 Satoshi, which translates to 0.00000001 BTC. However, the amount is considerably small, and it is not possible to buy just 1 Satoshi on any exchange.
Since a Bitcoin can be broken down into 100 million Satoshis, you can own a fraction of a Bitcoin, but you do not need to make your investment infinitely small.
In the future, some exchanges might allow investors to buy a few Satoshis when the price surges higher, but currently, 1 Satoshi is worth an amount that is almost impossible to transact.
It is not advisable to invest such a small amount as the exchange charge fees for selling, buying, and transferring cryptocurrencies.
These fees will destroy an investment rapidly if it is not significant. But experts advise that investors should buy a minimum of $50 for them to get any profit from their transactions.
FAQ
Let me answer some of the frequently asked questions online…
What is the safest Bitcoin investment site?
There are hundreds of websites from which you can use to invest in Bitcoin. All of them have their pros and cons, and ultimately, you’ll have to choose a few based on your preferences.
Most of all, I recommend you try Binance crypto exchange, as people have proved to have success with them, when it comes to crypto investment.
In any case, there’s a unique platform known as CoinSwitch, which serves as an aggregator that brings all the prices of crypto-coins from different cryptocurrency exchanges together in one place.
How can I get free Bitcoin?
It’s possible to earn free Bitcoins, but you should know that most of the ways ends up only giving the smallest proportion of Bitcoin.
If you would like to know the best ways to get Bitcoins for free, you should see this guide on how to earn BTC without investment.
How much Bitcoin can I buy at once?
You can buy up-to $100,000 at once, but it totally depends on the amount of Bitcoin the platform you intend to use for investing in cryptocurrency accepts.
While transaction limits vary between exchanges, and based on your level of verification, some platforms will allow you to buy up-to $50,000, or even more per day.
Can you lose money on Bitcoin?
Yes of course! You can loose money in different ways, while investing in both Bitcoin and every other cryptocurrency (Altcoin) out there.
One of the most popular ways that I’ve seen people loss their investment, is when they try to invest in a Bitcoin scam project designed by the fraudsters to swindle money for the unfortunate.
Another way can be when you leave your Bitcoin investment in an exchange where you bought them for a long time. There may be a hack, and you fall a victim.
What is the minimum I can invest in Bitcoin?
There is no minimum to invest on Bitcoin, when you want to start getting started with cryptocurrency. Just do some analysis to get more information before investing.
In conclusion
Looking at these determining factors, it is evident that there is no uniform minimum Bitcoin investment needed. You can invest as little as 1 cent, but only if the exchange allows it.
However, experts advise that you should invest at least $50, to cater to the transaction fees and ensure that a profit is realized.
Do not forget to transfer your cryptocurrency investment out of the platform where you got them into a secure wallet, unless you are not keeping it for the long-term.
Personally, I use one of the most recently released cryptocurrency hardware wallets by Ledger cyber security company.
The name of the wallet is Ledger Nano X.So to learn more about this HD (Heuristic Deterministic) wallet, can simply read my detailed review.
