How to Build Crypto Investment Portfolio with $100- $200
Initial capital for any asset class need not be bulky; otherwise, you will not start if you have a near-empty pocket. Unfortunately, no one gets rich without taking additional risk – in this case, trading crypto comes in handy.
Price fluctuation is a business, and cryptocurrency is one of the most volatile alternative investments you could ever think of. Forex trading has similar behaviour, but crypto fluctuates 24 hours across 7 days and, like, forever.
Rule 1, don’t venture into this uncharted territory without knowing you can get burnt. The upside potential is steep, and for what it worth, it appears better than gambling. It is suffice to say that some asset managers still see cryptocurrency trading as a gamble due to a lack of regulation.
How to split $100
If you have $100 as your initial capital, your investment choice isn’t Bitcoin, Ethereum or Ripple, among others. What you have to understand is the power of trend or price movement – even how easy is it for price to move.
Every 1% drop in BTCUSD can cause investors’ blood pressure to rise, especially if you are coming from developing countries where you have an exchange rate disadvantage.
That is about $1000 if the price of Bitcoin is $100,000. If you buy Dogecoin with $20, and the price declines by 1%, you can still maintain your ‘steeze’.
Like penny stock investors, having some patience will pay off if you can hold ground amidst price fluctuation. Steep volatility that is about to flush investment in BTC can force you to take an irrational exit from crypto investment – you think it is better to cut your loss.
The market could rebound, and if you don’t sell, it could go down further – and what comes to mind at that point is “Ah, and I wanted to sell when crypto was $95,000 to reduce my loss….”
Greed and fear control every investor. In any market, investors’ asset choices reflect their pocket size. If you have a net worth equivalent to the BTC price, don’t go there; it isn’t for you unless you want to gamble.
At 0.1492 at the press time on Dec 4, $100 can get you 670 Dogecoin units. Sometimes, it isn’t okay to buy when an altcoin is making an uptrend – the law of gravity often applies. But the thing is, crypto investors take a quick bet during a rally too. You have to be smart before it turns to a seller’s market.
Some crypto gods do the opposite in the market. If the price is climbing, they sell, and when the price declines, they buy – that’s experience – it could be costly at times depending on market direction.
How to Invest $200
Now, don’t buy only Dogecoin. This means you plan to dilute your holdings. When the price of one asset class falls, the other may be climbing. All you need there is to press your calculator to determine how you fare.
Another crypto asset you can buy is Cardano (ADAUSD), priced at $0.4450. Put another $100 into this and get about 225 units.
In your portfolio now, you will be holding Dogecoin and Cardano. The only thing that will interest you as a crypto investor is how these two assets are moving. If ADA price surges while Dogecoin dip, go and check what is happening in the overall market.
What is in the news often sets price direction and gets information about liquidation, investors’ bandwagon moves, regulators and activities of crypto gods. If Elon Musk tweets Tesla will give a discount to buyers who pay with Dogecoin – what do you think will happen to the price? XRP Falls Amidst Institutional Demand, Retail Selloff
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