Topic: How much should I invest in cryptocurrency as a beginner (Read 342 times)

^That is definitely right and it should be avoided.
If you are just starting out, I advise against diversifying your portfolio right away. It is important to first develop a solid understanding of fundamental trading principles and effective risk management strategies. Jumping into numerous altcoins can be overwhelming for beginners, as it requires keeping a close eye on each pick and managing multiple assets. It is better to hold off on this approach until you have gained more experience and insights from your trading journey.

Well, I don't think there is a limitation on how much to spend as a newbie because even if it was $1,000, $10,000 as long as you can afford to lose that money, that is still okay. But of course, I encourage them not to put in a huge money right away, we just think that we are still in the learning stage and probably we gonna lose them. So if we think $500 is enough, then go for it. The most important is that you will never regret whatever happens after. We can learn more if never limit ourselves but yeah, learning is quite expensive.

I don't want to recommend it - every trader should know that they have chosen a risky asset in the crypto space if they want to trade. The demo account doesn't help much - it just makes the trader even more afraid to trade because his mindset will say; you can't lose.

Use a live account - trade with a small budget and get a lot of experience from it. I tend to suggest them that way over demo accounts.

Whether we are dealing with those conventional or traditional forms of investment or we are investing on this crypto space, then everything does have that accompanied risks on which it is really just that normal that

we should really be that mindful about the risks involved so that on every move that we do make then we would really be that prepared or really been that wary about those probabilities. This is why it would be always best on investing on the amount on which you can afford to lose and never tend to make things to be rushed up because if you are really that expecting that much or really that positive about having those good results then you would be able to sooner or later be able to realize on whats the real deal.

Just like the rest been saying that it would be better that you should not really rush up yourself on learning things in one go. Everything do takes right time and right engagement because if you are really
that someone who do really make out that kind of behavior towards investment which it would really be just bringing out that kind of desperation on which it is something that never been that
recommended on doing so.

Op had mentioned some of the things we need to put into consideration before we ever decided to invest in cryptocurrency which is a volatile assets except the stable coins that are pegged to US dollar. In case we have the plan to invest our money, we need to ensure that we study the asset we want to buy to make sure that we are not making any mistake that will make us lose as we invest our funds.

 There is need to scrupulously do our own research apart from what we hear people say about a project so that we can as well prepare and invest the amount we know we can afford to lose as an investor that is ready to take risk but not the one that will make us regret totally.

If you are a beginner then I would not recommend to diversify your portfolio until you have a good grasp about fundamental trading and how to manage the situation really well. For beginners picking so many altcoins mean a mess for them because they need to keep track all of their picks especially with how much altcoins they have. I would not suggest that until they learn more from their experiences.

Investing comes with risk, and the more that you invest without knowledge and experience, the higher chances you will increase the risk of losing. That’s the reason why most beginner investors find it hard to achieve success because they miss the fact that they need to be knowledgeable by learning the basics at first before they will jump into investing. However, I understand that they are hunger with profits, but investing without knowing how to invest in the first place, and not knowing even DCA, well definitely the said investment will never end up in progress.

In any type of investment, one should always consider his financial condition first before he takes another risk in losing his money. So if you think you’re not yet capable to invest and lose, then it’s better to delay your investment plan. Otherwise, taking a debt is a clear manifestation that you are already losing before you make profits in your investment. Investing will be more successful if you have patience and the right attitude towards on it, and not just because of your greed to chase more of uncertain profits.

It is the loss of real money that will help a beginner to take a sober look at trading and assess the risks of losing his deposit. And the fact that a beginner will have such losses, then there is no doubt about it. But if a thorough analysis of the reasons for which the deposit was lost is carried out, then such a loss can be considered as a tuition fee.

It depends on the individual type of investment because monitoring your portfolio isn't necessarily for someone who is in the race of HODLing BTC, basically if your goal is a long-term investment, as that would only put you under pressure checking your portfolio when the price is down, and may result in you taking wrong decisions which leads to what we call panic selling.

Although, it's rhetorical but I still want to provide a brief answer. Invest what you are able to lose (what you won't be needing dearly if the market dips).
Very nice idea, but don't let your investment goals over pressure you, especially when you don't meet them.

Very nice. If you are living comfortably, you can invest upto 20% of your income. Don't forget to save, emergency fund etc

If you cannot do this, it is better you stick to bitcoin investment.

I do not consider this to be diversification of investment. If anything bad happens to bitcoin, there is 90% chance that all the altcoins will be affected. If you want to diversify your investment, consider stocks, real estate, gold etc

There’s no specific amount that you can get in to cryptocurrency as a beginner. But of all the things that the OP have mention, the first one which is to educate yourself is the most important thing of all.

Most of the newbies and beginners are only thinking of Bitcoin and cryptocurrency as a get rich quick scheme. They were being prone to this kinds of schemes and ended up losing their money creating negativity towards Bitcoin and cryptocurrencies.

This is why education is needed about the fundamentals, risks, etc., before they get into crypto. We’re not financial advisors here. We’re just educators and giving them information, but the final decision is always in their hands whether they want in or not.

This is the first thing a newbie should do to understand crypto trading/investing in general. Because knowing what we are getting into can give us an idea for everything and that includes the ideal amount to invest as a starter. There's no specific amount actually but it is much wiser if you start with low capital to experience first and see how it will go.

In addition, don't be eager to profit instantly or aim for a huge profit through buying a not establish coins. Always choose the one that is unlikely to be delisted in exchanges so it's less risky even you're not going to trade it immediately.

Think of using demo account in trading like shooting a gun, practicing in a firing raange and shooting a real person is a different thing hut with the shooting range, you can sharpen your skills to the point that the only thing you have to worry is the pressure of really shooting a live target. Demo trading uses the real time market so I don't see how it can be different when real money is involved, maybe that feeling that you're saying is that you might regret doing demo trading because you're not winning real money in it even if you make a really good trade, one advice that would work against that feeling is stop being a slave to money and focus and sharpening your skills first.

adding some crypto assets in the portfolio might be helpful for some investors. but some don't really think this is so important.
there are investors who only focus on Bitcoin, and increase their investment only on Bitcoin. don't care about altcoins with the consideration that if you choose the wrong altcoin assets for investment, it can make investment planning in some assets fail too.
i also think altcoins would be better for short term or trading. therefore I am better off collecting Bitcoins and increasing my investment there rather than adding other crypto assets in the portfolio.

I agree with the majority here to use demo trading accounts.

But for me, it's really different if you already using real money on trading, the feeling is different, and the pressure and environment are different already.

Yes, you can use demo trading account but if you can just afford even small amount of real money and deposit it to some exchange, just do it, start with small amount and as time go by, you can increase your capital especially if you started to familiarize how trading works.

Invest on something you can afford to lose.If i were a newbie then this would be i be doing;

1. Buy some small portion of Bitcoin, ETH and some top ranking coins
2. Make some additional in depth research about their utility and use case
3. Trying out to broaden you knowledge and skills pertaining on what you are engaging into.

Remember: You should not make yourself that easily believed on other approaches and speculations in the market, dont get yourself easily dragged with some hype or fud.
Always having the consideration on making your own research before you would make your own step on investing.

This is the only point that I’ve got some struggles with accepting. Yeah, it’s not exactly a bad idea to monitor your investments but when it comes to bitcoins and one who has got a long term hodling plan, that could turn out to be a disturbing thing to do. Let’s not forget, the bitcoin market is a highly volatile one and can swing at different points and as such, being a beginner when the market goes bearish or you find price dumping at an unexpected rate, that scares the shit out of a beginner. You start building the idea of loosing your portfolio before you make profits, you want to cut loose and in the process, get to accept loses when the market has got a more promising feature in time.

Not paying much attention to the market is one way to avoid that, you don’t get to think about your decisions on hodling and is easier to endure hodling for a long time by avoiding the chats. That’s for long term bitcoin hodling though.

There are some videos that are published in youtube about trading are not helpful. So if you watch that and added to your trading plan, it will complicate your trade and a little bit confusing. It might be the reason why your trade is not effective. If you decided to join a mentorship program, you have to focus on it and ask your mentor for more information like asking the confluences in trading to boost the probability of winning using the strategy. In this way your mind will just calm and relax because you understand very well your strategy.

I agree with you but I always say, for everyone there's always an entry point into the Crypto space. Some entered by following a hype of a particular token that profited others within a short period and they FOMO in. Whether they made profit or loss themselves, that's for me an entry point into the space. The problem is if they choose to remain at that level. So you see different people grow from whatever entry point they had to becoming experts and big investors.

Instead of educating other beginners with some tips and advice - then this quote seems to work for you too.


I don't blame you and your good intentions for sharing knowledge and advice - but nevertheless advice like yours on your topic seem to have been very commonly written by many other users. Admittedly not all users on the forum are well educated about trading and investing - but I tend to expect you to find other unique ideas if you want to earn merit and rank. Good luck - but I don't mind your good intentions.

A good debt is when you've got a stable business and you're going to do it for expansion or when you've got a plan to increase your production. But with an investment, which is like floating and you have no idea if it's going to be good or bad, that's a bad debt.

That's right, it is not advisable to get into investments in crypto using loans. How many have we seen those people that have done the same thing, most of them regret it and if there were successful ones, they're just few.

as a beginner whats crucial is knowing how exactly investment works it requires just small amount of capital and you're set.
you don't need that much of capital because of course you are a beginner which has higher chance of just losing your investment like that since
you are still hardly make any good decision.
if you are investment with so much money i'm afraid that a series of bad decision from your side would just make the money vanish into thin air.

Someone that is just starting out their journey needs to use a small amount of money, now what small means can very greatly depending on the capital that we have available to us, but it should be money that in the case everything was lost we will not be affected at all by it, this way we can learn a great deal of things even if we happen to lose, something that is almost a certainty, then those lessons will be learned with a minimal cost and then once we trade for real we will not make any of those mistakes anymore.

This is the most critical part, even for already knowledgeable people in crypto, especially for newbies.

We all know that in most cases, most crypto-investors just want to ride the hype and go with the flow. In the end, they ended up wrecked because of their inability of doing good research. It's understandable that it's not a simple thing to do but doing hard research before putting any money should always be considered.

It's not advisable to just go with the hype as even if projects will come up in a professional way, that's not an assurance that success will happen later on. That's why it's always a good practice that every newbie should always start at "only bitcoin" as their first crypto of choice.

Yeah well I finished working on this algorithm that checks signals from various functions and combines them into one.

They are giving pretty good results.

try it see what you think http://launsdorf.com

As said the amount isn't specific, when we need to know well about trading we need to feel the difference in the value we hold based on the price movements happened. For this atleast 0.003 BTC is required according to my choice. This means we'll be able to experience the change in a better way. Something like the price of bitcoin changing from $30k to $29k will give a $3 difference on our holding value. This gives clear picture on how to involve into trading and make money as well as lets us know how to avoid losses.

For a lack of knowledge while studying basic fundamentals about Bitcoin this is advisable.
DCA encourages disciplined investing and helps to reduce emotional decision-making.  It removes the pressure of trying to time the market and eliminates the fear of missing out (FOMO) on potential gains and those investors who engage in DCA are less likely to make impulsive decisions based on short-term price movements.

There are too many things that you must learn before investing in crypto, I suggest educating first yourself before putting your money on crypto.
To all newcomers, studying and learning first is a must.

It won't be nice  to invest in what you don't have ideas about and that is what is killing most of the investors,  I noticed something about Elon and his projects are built  on information starting from space x and tesla, were built  from the information he add if not for that it will be very difficult for him to succeed. Bitcoin functions best when information is added to it otherwise, learning the hard way is not far away. And the best risk management advice anyone can give is to start investing with little sums so that you don't end up losing your money. That is where investing in bitcoin carries the danger that you could lose your money. Always begin with modest funds.

I would say there is no specific amount that you can start with but it you are new and want to have practical exposure with gaining experience then start with small amounts but if you are into long term holding then simply go with bitcoin with whatever amount you lik but if you have in mind intra day trade then small amounts are fine.You can also have demo account setup so you can have little bit idea about how market reacts and you have some experience before coming into real action.

Welcome to Our cryptocurrency world.. As a beginner at first you need gather knowledge about cryptocurrency market and about buy sell and how to sell etc. Without proper knowledge anyone shouldn’t invest. Because without proper knowledge investors will loss his valuable fund. So Learn more to invest on this market. As a beginner you should invest small amount at first. If you do mistake then you will not big losser. You can creat a demo account tor trials after then you can start small amount then slowly you can increase your funf..

Learning is very important but from videos and articles because in our country there is not such seminars take place according to cryptocurrency may be the reason is that all individuals don't know about it or may be one does not want to utilize his money in arrangements of such seminars.

But it will be very advantageous for all investors because there something in life which we don't know before but get it after communication with others which means that one's knowledge never gets completed.

Well, everyone's dream is to experience the bull run despite a beginner or a veteran investor. In fact, that is indeed, the dream of investing in BTC- by experiencing gains that are far more superior compared to any other investment mechanism present in the market.

Personally as a newbie, you should only invest the amount you are willing to lose. By investing, you should have considered the risks associated with it. Regardless of whether you earn or lose your money, the fact that you have experienced this venture adds to your whole investment knowledge as a beginner.

Talking about Altcoins that beginners will invest in, the top Altcoins seem to be better if alternatives to Bitcoin can be used.
Altcoins that will give a lot of losses are usually new altcoins and have not seen development, because new altcoins are FOMO because of some hype that is done.

Altcoins like ETH are no doubt, because they are always side by side with Bitcoin, always following the price of Bitcoin and even ETH also reached its latest ATH.

It takes a strong hand, a strong mentality, and a strong belief that long-term holding of Bitcoin and top Altcoins will provide more profits.

Continued buying will gradually multiply assets and further increase profits. That will grow the best profits.
Do not have to force it, as beginners just use the money they have for investment and do it regularly, it will be a good opportunity.

That's right and the amount you should invest really depends on your personal financial situation, risk tolerance and your own investment goals. However, a general rule that you should apply so you have no regrets is to only invest what you can afford to lose, as the cryptocurrency market can be very volatile which can lead to sudden big profits and big losses.
Do it to the best of your ability once you've prioritized your essential needs. If you do it periodically when you have extra cash to accumulate, and in the long term you will definitely get a good return if you have the patience and firm belief to wait for the right time to sell it.

How much you should invest in cryptocurrency as a beginner  depends on your financial status. If your financial condition is good then you will have one type of amount and if your financial condition is bad then it will be another type. Because according to the financial status of a person, his ability to take losses depends.  But one piece of advice I would give to the op is that everyone be it a beginner or a professional should invest in cryptocurrencies as per his/her ability because crypto is profitable without efforts but on the other hand it is high risk. So just as a person can profit a large amount quickly from here, he can also lose a very large amount quickly.

A beginner should usually be exposed to the benefits first to get them motivated. Now I see a lot of newbies getting into crypto because of FOMO and they get stuck in scam coins or worthless meme coins later on.
It is clear that bitcoin is the recommendation that I always say. If we can hold it firmly then believe that it will bring us profit. The strategy used will also vary, but what I do is with the DCA strategy.
The problem I often hear is that those from beginners sometimes say they don't have that much money to buy bitcoin, they think buying bitcoin should be according to the current price (buying 1 coin right away), but that's not true at all.

When I saw the title of the thread, at first I thought the Op was asking about how much he (op) can invest in crypto because of the use of “how much” in the title but opening the thread I realise it was more of “what to consider “ and not how much.


To me, the amount that a beginner should use depends mainly on their source of income. Because if you think of it, using or starting an investment with $50 for someone that earns $80 is not fixable and aside the income their monthly expenses should also be considered. After all one should invest what he or she can afford to lose so if a beginner decides to DCA $50 on a monthly basis when his income his around $80 dollars with time he’ll find himself need that money that he has invested and since we’re dealing with crypto you never can tell what the current price might be at that time.

And again, for beginners I’ll advise that they should focus more on bitcoin. Dealing with altcoin as a newbie with no experience is more like gambling with a very high probability of you falling for a scam project. So they should buy more bitcoin and if at all they want to diversify their portfolio then they can do so just little amount of altcoin and when they become better at analysing a project then heheh can start increasing their altcoin allocation.

you mentioned some good points here dear op. All newbies or experts both should follow these points. But I want to point something out here is: If you want to invest in cryptocurrency then you have to understand or distinguish which type of investing you should do. Whether it's Holding or Trading. Because both have different strategies and different outcomes too. In fact in both types, you have to choose only one or diversify your portfolio for better gain. For a newbie, I suggest they should start their trading sessions in BTC only because BTC is less risky and less volatile and provide the best outcomes compared to alts.

But still, according to your name I think you prefer to trade in alts or I should say you want to diversify your portfolio for best outcomes but let me tell you something what I you do know this token or coin will never bankrupt of run away with all of user's money then why risking your assets in the names of diversify to invest on different ALTs which could go bankrupt.

This is a good plan actually. Here the risk intake is also less and perfect for the beginners. If you are a beginner your first motive should be to not make losses, rather than making profits. If you master the art of minimising the risk, then automatically in the later part of time you will make profit. But as a newbie your sole motive should be to learn and see how market fluctuates. Holding Bitcoins with some good amount of money can be the best thing.

Your post didn't represent your topic. Your post is on investment guide or advise so I will add that it is very important for an investor to have a full knowledge of the project to invest on. Don't rush for project that is new in the market. Those that are new have not tasted the heat in the market and may not survive if they are not good project. That means if they don't survive, you have lost your money. You also have to take note of how much you want to risk in investment, your risk appetite should not be of greed but of reasonable possibilities of return on your investment. Invest moderately and gradually build your confidence.

There are times that debt/loan is good when you put it on an investment because you will have access on extra capital that will give you more profit. This is only advisable if the potential income is greater than the interest rate to cover the debt and eaen at the same time.

On crypto investments, debts is indeed crucial and subjective due to the volatility of the market. It’s a high risk high reward since you can pay your debt and get huge profit if you invest on the right time and right coin such as Bitcoin.

A one time bull run can give you sufficient profit to cover interests rate and even the loan amount itself.

This is where we're telling that people should only invest what they afford to lose. Because when someone's too hype, they're forgetting things like those savings that they've got that are allocated for other things and the debts that they have to pay first before investing.
Other thinks that it's okay to have a debt while they're invested. They don't realize that they're just getting something from their investments which they're also going to pay to their debts.

From the title of the thread,  I thought this was about asking for ways to invest your money in cryptocurrency as advice to ops,  not knowing this was going to be beginner cryptocurrency investment advice.

Anyways this is cool,  and primary investment principles,  but more also when you talking about investment,  after the theoretical framework for your investment you also need technical analysis of the market most especially in altcoin,  technicality like when the right liquidity to consider as an investment tool most especially in unready listed coins on the exchange.

But if you are not good at reading chart histories of the various projects due to high volatility in altcoins,  I suggest you stick to less volatile and less risky assets like bitcoin to minimize your risk of losing.

You could invest $100 dollar with a consistent DCA or HODLING plan for a 5year duration while you gather and increase your knowledge on BTC trading or other crypto currency investment that could yield profit.
You do not need to have millions before you can invest. Just like what savings is to a regular fiat bank, that's what HODLing is to BTC investment.

A beginner I think should first experience the bull run and then take profit so he could make better decisions after the bear market. It's not a matter of how much or whether he should diversify but see for himself which projects are going to last or he should just be onboard with BTC only.

One should have BTC before thinking about adding altcoins but most importantly, when to buy and when to sell. There isn't much of a risk when you get onboard during the bull run.

If you are investing in bitcoin, it is better than altcoins and you will not spread out your risks because bitcoin is less risky than altcoins because it is less volatile but it can give good return if you are patient.

You can use low amount of your money to gamble with altcoins becuase they might disappoint you.

I find this question as most frequently asked question from newbies in the Cryptocurrency space. So I thought I should share few tips that can guide the decision making.

There are a few lessons that could help you decide these easier.
1. Educate yourself: Learn about the cryptocurrency market. Read articles, watch videos, and attend seminars to understand the basics of investing.

2. Set investment goals: Determine your investment goals. Ask yourself why you are investing and what you hope to achieve from your investment.

3. Evaluate your financial situation: Evaluate your current financial situation, including your income, expenses, debts, and savings. Determine how much you can invest without affecting your other financial obligations.

4. Understand the risks: Understand that every investment comes with risks. It is crucial to know the risks involved with cryptocurrency before investing.

5. Research the company or cryptocurrency: Conduct thorough research on the cryptocurrency you want to invest in. Look at the chart history, team, use case and future plan.

6. Diversify your portfolio: Diversify your investments to spread out the risks. Spread your money across multiple cryptocurrencies, rather than investing in just one.
7. Start small: Start with a small investment and grow your investment over time. Do not invest all your money at once.

8. Be patient: Investing in cryptocurrency can be a long-term process. Be patient, and do not panic if the value of your investment fluctuates.

9. Monitor regularly: Monitoring your investment regularly will help you make informed decisions and adjust your investment strategy when necessary.

Feel free to add some advice and if possible experiences.