What Is the Lowest Amount You Can Invest in Bitcoin?

You may think you need to have a lot of money in the bank to start dabbling in cryptocurrencies, but the reality is quite different. It is possible to invest in crypto coins like Bitcoin even without owning a fortune. Bitcoins should be viewed as an investment option like any other regular investment options like gold, real estate, stocks, or bonds. You can always invest a small amount in Bitcoins to see if you are getting good returns and discontinue if the results are not encouraging. Investments in passive income are important to have a healthy portfolio. It keeps you protected and secure in case you find yourself unemployed suddenly.

When you think of how small an amount you can invest in Bitcoins, you have first to understand that there is no minimum amount for Bitcoin investments. For instance, crypto trading platforms like Coinbase allow you to purchase Bitcoins with only two dollars. Of course, investing with such a small amount makes no sense because the exchanges will charge you fees for buying, selling, transfers, etc. These will impact your original investment. So, it is advisable to start with $50 at least. The idea is to invest a sum that you can afford to lose.

Things to consider when deciding how much to invest in Bitcoins:

• One of the first things to look at when investing in digital currencies is timing. People generally start talking of Bitcoins when their prices are skyrocketing. However, when prices fall, investors become wary of the product when prices fall. When investing in crypto assets, you need to understand that market prices keep fluctuating; a market cycle can last for a couple of years. So, to get the highest returns, you must time your investments right.
• Since crypto-assets are notoriously volatile, investors are scared as the future tends to be unpredictable. So, it is best not to ponder too much on how much you should invest; rather, you should consider how much you are prepared to lose if prices go south. Think of the worst that could happen and see how much this can impact you. If you are unsure about your future safety, you should perhaps invest a smaller amount. Even experienced investors can engage in panic-selling. The idea is not to let emotions decide what an optimal investment amount should be.
• Another factor to consider when deciding on the investment amount is your own mind change. On many occasions, you will find investors are not able to commit to an amount that they had earlier decided. So, you must always keep some room for changes in decisions. It can also be good to make small investments at regular intervals of 3, 6, or 12 months. This helps you understand how the market works, and you can then get the confidence to move on to a bigger investment amount.
• Understanding your returns tolerance is equally important when deciding on how small an amount you should invest. You must decide on an amount that you do not feel an attachment with; this will help you remain strong even if you lose the money. The trick to making money is to have a diversified portfolio and invest in Bitcoins along with other investments like gold, real estate, etc.