When I first started investing into cryptocurrencies I started with $30-$50 investments. Sure my returns were not going to make me rich, but they were not going to break my bank account either. I could afford to lose that amount.
But more importantly I was able to learn the process of investing safely. I was able to make mistakes with small amounts of money instead of large one.
Here is an example for you. I invested $10 into ETP at $2.23. The next day it went up 40%. I was happy with that so I invested another $30. It stayed at the $2.23 price for a few days and then started to rise again.
At this point I am thinking I have found a coin that is just going to keep rising in price. When it got to $4, I invested another $50. The coin eventually went up to $6 and I was ecstatic.
Then the market crashed and the price of ETP with it. It currently sits at the price of $2.67. It has not returned to the price of $6.
This was a good learning experience.
- I was able to see how fast the markets can move
- That coins run up in price quickly and can fall quickly,
- To not chase prices
- To be patient and wait
- That dollar cost averaging is a good thing
- To not think that a coin will just continue to rise
This was one of the very first investments I made and I learned a lot. But if I had been investing $1000 or $10,000 this might of not been a learning experience at all. I may have just seen the money I lost.
Everyone’s definition of a small investment is different. Basically it depends on how much money you have. But I strongly recommend starting with $100 and below.
Learn the process and the lessons that will be taught. Get information here and learn from mistakes I made.
Then start investing more and you will be able to invest with confidence, and of course make money.