Cryptocurrency is increasing in popularity with every passing day. Globally, cryptocurrency investors are taking advantage of the knowledge they have in this trading market to make a fortune. However, some don’t know how to go about cryptocurrency trading but they would like to give it a try. If you are one of them, the million-dollar question probably running through your mind is how much money you need to start investing in it. The information below will enlighten you as you seek to invest in cryptocurrency.
What Is The Minimum Amount To Invest?
This is a question that many people ask. Indeed, it is a valid question since you need to know where to start your investment journey. Essentially, there is no minimum amount of money that you should have to invest in cryptocurrency. Normally, the minimum amount of money is determined by the platform on which you will buy your cryptocurrency. For instance, if you are buying through Coinbase, you will purchase Bitcoin from £2. That being said, it is not prudent to invest such a small amount. The reason why this is a small amount to invest in cryptocurrency is that the exchange platform you are using will charge you fees for trading. If your investment is not big enough, these fees can affect it negatively. It is for this reason that it is highly advisable to invest a minimum of around £42. This will be a good place to begin.
The Amount of Investment Capital You Should Invest In Cryptocurrency
The amount of your investment capital that you should spend in this market should be around 5% to 35%. For a beginner in cryptocurrency trading, 5% is recommended because it is safe. You don’t want to invest a large amount of your capital, yet you are not very sure about how to navigate through the trading environment. Based on this, 30% can be risky if you are new in cryptocurrency or you are not comfortable with losing a huge amount of money. Remember, there is a lot of speculation in this investment, so you should be careful…