Most people want to trade Bitcoin but are afraid of starting. But, starting is what sets successful crypto traders apart. Wealthy individuals invest money in ventures that bring passive income.
People work all their lives to get an active income. However, passive income is the source of wealth that will last for years. Once you start earning a passive income that is more than expenses, you can quit working and continue to make money. That means you can travel the world and still earn money.
But it would help if you were careful to avoid investing more than you can afford to lose. Ideally, do not borrow capital or money to invest. It’s imperative to avoid borrowing money to invest in cryptocurrencies.
And even when you have money, think carefully about the amount to invest in Bitcoin. And this brings us back to the question of the required amount to start trading Bitcoin. Well, Bitcoin trading is pretty easy these days thanks to platforms like bitqs app website that enables even individuals with no experience to start investing in cryptocurrencies.
But you should know the amount to begin trading with even when you use such platforms. Here are essential factors to help you determine the amount to start with when trading Bitcoin.
Cryptocurrencies have a very volatile market. That means Bitcoin’s future is unpredictable. Therefore, think about the amount you’re comfortable losing when determining the amount with which to start trading.
For instance, do you think you will consider suicide or lose sleep if you lose the entire investment? Are you comfortable losing the whole amount? If your answer is yes, proceed with your Bitcoin investment. But if you answered no, don’t invest it.
This advice might seem stupid to some people. But, what action will you take if the investment multiples your money 20 times? Becoming a millionaire all of a sudden can prompt you to make a poor decision. And you can end up losing your life savings if not careful.
Therefore, invest an amount that you’re detached from emotionally to avoid making unreasonable decisions whether the assets go down or up.
People will naturally follow the existing trends. But, the crypto market exhibit repeated cycles. These cycles last one or two years. Crypto prices rise very fast, and this creates bubbles. Unfortunately, these bubbles have always poorly burst. That’s why timing is crucial when it comes to investing in Bitcoin.
When determining the amount to start trading Bitcoin with, consider the current market cycle. Is Bitcoin near the all-time high price? When was the last Bull Run? If Bitcoin is near the all-time high price, consider investing a little amount. But, if the current Bitcoin price is $5,000 and the last highest Bitcoin price was $20,000, consider investing more in this cryptocurrency. But again, invest the amount you can afford to lose.
Don’t stick to the amount that you decide to invest in Bitcoin the first time. Be ready to change your mind if market trends require. The crypto market is ever-evolving. Therefore, be prepared to change your mind and leave room for that when starting. That means you can divide your starting investment and spread it over time. For instance, you can invest specific amounts in small bits over a year.
The Bottom Line
There is no minimum amount required to start trading Bitcoin. Only the platform you choose to buy and sell Bitcoin can set a Bitcoin piece. Nevertheless, you should not invest a meager amount because the exchange platform you use will charge a fee when you buy, sell, or transfer your Bitcoin.