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Do you want to invest in cryptocurrencies, but you have little money? Here the solution
Cryptocurrencies have become a boom, which is why there are more and more people interested in investing.
However, not all people have hundreds or thousands of dollars to start in this world of cryptocurrencies.
Many people believe that investing in the world of cryptocurrencies requires a large capital.
This is a false belief, you can invest in cryptocurrencies with little money. Of course, do not expect to generate large amounts of money, since the profits are usually proportional to the money invested.
It is important to mention that the world of cryptocurrencies is long-term, that is, do not expect to invest $100 today and multiply it in a week. It may take weeks, months, and even years for you to see good returns.
Frequently asked questions about investing in cryptocurrencies
Next, I want to answer you some main questions you may have about investing in cryptocurrencies.
1. Are they safe?
Any type of investment, be it cryptocurrencies or another, is always going to have risk. This is because investments can go well, or they can go bad. In addition, the world of cryptocurrencies has an additional factor and that is its volatility.
This is something that has characterized cryptocurrencies since its inception, they can be easily influenced, which can lead you to earn a lot of money or lose it.
2. How do I start investing in cryptocurrencies?
Investing in cryptocurrencies is not difficult, today there are many platforms on which you can start.
However, you are going to need 3 things to get started. The first is money to invest, a wallet and an exchange.
Having these three things, you will be able to start making your investments in cryptocurrencies in a totally safe way.
3. Use a wallet or an exchange?
This is another fairly common question asked by people who want to invest in cryptocurrencies for the first time.
It is necessary that you have a place where you can store your cryptocurrencies and for this, you will have two options, resort to a wallet or an exchange.
Both will serve you perfectly to keep your cryptocurrencies safe, however, they do not work in the same way. Generally, with an exchange you will have higher commissions (as long as you send off the platform). However, it will allow you to change between currencies in a simple way.
In addition, today, exchangers offer a wide variety of different options.
The other option is the wallets, which have basic functions of storing, collecting and paying with cryptocurrencies. Some of you will allow yourself to "swap" with currencies to change between one and another.
But these have the advantage that you can have your seed phrases. With this, you will be able to reestablish your wallet at any time and this gives you greater control of your coins.
What are the best strategies to invest in cryptocurrencies?
There are different types of strategy that you can follow when investing in cryptocurrencies. Next, we will briefly talk about what are the main types of strategies that you can follow for your small investments.
1. Hold cryptocurrencies
One of the best ways to earn income when investing in cryptocurrencies is by "holding". This means that you buy a quantity of a cryptocurrency and keep those tokens until it rises in price, and you can sell.
For example, if you had bought 1 bitcoin in 2018 when it was around $4,000 and held it to sell today, you would have had a profit of $56,000.
This is probably the oldest strategy, but the easiest to carry out. Of course, it is necessary that you have nerves of steel, since the price can fluctuate downwards at times and can lead to premature selling.
Another of the most common methods when it comes to wanting to invest in cryptocurrencies is to trade. That is, buy and sell cryptocurrencies, the idea is to buy them when they are low in price and sell them when they are more expensive.
At first glance it may seem simple, but it is not, to be able to carry out trading a lot of study is necessary and always be aware of the price of the currencies. Besides of course, always keep an eye out for those coins that prove to have great potential.
It is possible to make very good profits with this method, however, you can also lose money if it is not carried out in a good way.
Staking is a relatively safe method of obtaining money with cryptocurrencies. Of course, being a safer method, the earnings are also lower. However, this is an option that you should take into account when starting to invest.
This type of investment consists of keeping a specific amount of funds in your wallet. This is done in order to support the network operations of that coin.
The tokens that you have in staking are blocked for a certain time. At the end of that time, you will get a reward, these can be a percentage that usually go from 5 to 20% generally.
You can do staking from an exchange, although there are some wallets that also allow you to do staking in a fairly simple and safe way.
How much should I invest in cryptocurrencies?
This is the main question of this article and the answer can be quite relative. Generally speaking, you can invest from $1. However, this does not mean that you invest such an amount, because the profits will be zero.
It is recommended that you manage to raise enough money to make an investment that can leave you good long-term profits. We would be talking about $100. However, it can be less.