How to Invest Your First $100 Into Crypto

Cryptocurrency is the future of money. Investing in it now can be a smart move for long-term growth. But where do you start if you're new to the crypto scene and only have $100 to invest?

Build a diverse, profitable, and well-rounded portfolio with these five golden tips:

Tip #1: Choose Well-Known Cryptos with Growth Potential

When you're starting out, stick with well-known cryptos that have a proven track record. Bitcoin (BTC) is the original and largest cryptocurrency by market cap. Ethereum (ETH) is another established coin with solid growth potential.

New traders with limited capital benefit from putting money into high market cap cryptos because:

*Market cap isn't a guarantee of success or security. Always do your own research and understand the risks involved in any investment.

Tip #2: Diversify Your Portfolio

As with any investment, you must diversify your portfolio. By investing in various coins, you spread out your risk and increase your chances of success.

A well-diversified portfolio includes a mix of different coins, with a focus on those with strong growth potential. Consider investing in a few different coins to start. Then, gradually increase your portfolio as you learn more about the market and your own investment strategy.

Tip #3: Dollar-Cost Average

Dollar-cost averaging (DCA) is a technique for investing a set amount of money into an asset at regular intervals over time. This helps reduce the impact of market volatility and is a useful strategy when investing in crypto. For example, if you have $100 to invest each month, invest $20 into five coins each month.

Let's say you invest $20 into BTC in January at the market price of $24,000. In February, it hypothetically drops to $20,000. If you invest your monthly $20 that month, your average becomes $22,000. BTC would only need to go back up $2,000 for you to break even, rather than $4,000. Furthermore, if BTC rallies to $26,000 in the following months, you'll be more profitable (and sooner!) than if you didn't DCA.

Tip #4: Stay Informed

The crypto market is constantly changing. So, it's crucial for traders and investors to stay informed about new developments and trends:

Staying in the know will help you make informed investment decisions and increase your profits.

Tip #5: Keep Your Investments Safe

You may have heard the phrase, "not your keys, not your money." This refers to the importance of holding your own private keys. If you don't, you don't truly own your cryptocurrency. Someone else has control over it.

For example, if you keep your coins in a centralized exchange, the exchange holds your private keys—not you. If the exchange gets hacked or goes bankrupt, you could potentially lose your funds.

But if you hold your private keys, you have complete control over your assets. Nobody can access it without your permission.

Besides storing your coins in a cold wallet, here are three ways to keep your crypto investments safe and secure:

$100 Is All You Need to Begin Your Crypto Journey

Investing in cryptocurrency can be a lucrative move if you're looking at long-term growth. The best part is, you don't need a lot of capital to start. With just $100, you can get your feet wet in the crypto world! By focusing on well-known coins with growth potential, diversifying your portfolio, and staying informed, you can build a strong foundation for your investment journey.

Looking for a supportive community to help you along the way? We invite you to join our educational cryptocurrency discord, AR Collective. Every day, people learn how to become elite traders and investors with the wealth of resources we provide. Bond with a community of like-minded individuals, all dedicated to helping you succeed!