Investing in Cryptocurrencies: The $100 Strategy

It's going to be daunting to get started with Bitcoin (BTC) and other crypto-currencies. Aside from the difficulties of understanding numerous new and often complicated technical and financial ideas, the novice who finds the topic may have the impression that it is only for a select group of people who are already financially fortunate, if not "rich."

The opposite could not be farther from the truth! In reality, in addition to providing a basic and successful investing technique, the purpose of today's post is to demonstrate that you can get started in the field with a little investment at the cost of a little organization and discipline.

It's all in the title: you'll need a little time.... and a $100 investment capacity to set up this method of investing in Bitcoin and crypto-currencies. Furthermore, rather than "method," it would be more reasonable to speak of an ersatz strategy, which, as we shall see in a minute, lies at the intersection of two worlds: cold technical and statistical analysis and a kind of financial pragmatism.

The goal is simple: to provide you with an easy-to-understand starting point for developing your crypto portfolio, which is accessible to virtually all stock markets.

Why Would You Invest $100 in Bitcoin?

In terms of crypto investing, a benchmark of 100 dollars seems intriguing. It's an amount that the vast majority of people will be able to free up, although with some work or a daily trade-off for the most basic.

It's an excursion for two at a good restaurant for 100 dollars, which isn't enough to purchase two new video games in 2021 or a day and a half of minimum pay employment. For many individuals, 100 dollars is already a budget worth considering, but it is also a goal that can be achieved with moderate effort for those who wish to begin investing.

On the other side, for many scholarships, a barrier of 1000 dollars would be a deciding factor. The goal of this website and the articles on it is to show that Bitcoin and the cryptocurrency ecosystem are intended to be inclusive and accessible to as many individuals as possible.

100 dollars is a potentially adequate amount of money to make a difference in the area of crypto-investment within 2 to 5 years, and I'll make sure to show this to you in the following 10 minutes. And it's fair to argue that in any investing area, it's unrivaled.

Before we begin, there are a few fundamental rules to follow:

  • My demonstration will be carried out in US. Dollars.

  • I don't take the prices on the day the assets were introduced to the marketplace, and much less so the prices suggested during ICOs. Indeed, if anybody may speculate on crypto currencies once they are available on exchanges, the ability to be an early adopter (during a private sale, for example), or simply to participate in an ICO while the device was new and ultra-confidential, would tend to skew the equation (in other words: EVIDELY the one who participated in the private sale of Ethereum at 0. 25 cents and placed 100 dollars in it has benefited from a hell of a booster, but this particular category of investors is clearly out of the running for our present demonstration).

  • I used the price of currencies one week after they were introduced to the marketplace as a corollary to the preceding argument.

  • On the reference site CoinMarketCap, the data is accessible and verified.

What if you had the ability to go back in time?

Back To The Future Crypto
"Come on Marty, give me a hundred dollars and I'll return in ten minutes!"

It is always possible to relive history if you are familiar with the sequence of events. Thus, to avoid a rather conventional confirmation bias, my demonstration will focus on four market "superstars": Ethereum (ETH), Ripple (XRP), DASH, and MONERO, which will serve as emblematic currencies to which I will arbitrarily add the MarketCap's 100th, 200th, and 300th currencies, respectively, which are CyberVein (CVT), TrustSwap (SWAP), and TROY at the time of writing.

The presentation will be straightforward and based on the response to a simple question: how much would you have today if you had invested 100 dollars in each of these currencies one week after they were listed?

Ethereum (ETH)

We start with the silver medalist of the crypto continent, Ethereum. Data from CoinMarketCap takes us back to August 2015, a few weeks after the official launch in July 2015.

At the time, ETH was offered at a price of 2.35 dollars. A week later, ETH was quoted at 1.01 dollars (a nice bowl by the way, which is worth keeping in mind these days, as investors tend to hyperventilate at the slightest price drop).

Ethereum To USD Chart

On August 14, 2015, 100 dollars equaled 99,0099 ETH. These 99 Ether, if kept warm in your wallet, would weigh 43,318 dollars today.

Ripple (XRP)

Ripple (which is receiving a lot of attention these days) is an old kind of money. It was conceptualized even before Bitcoin (according to its creators) and launched two years before Ethereum in August 2013.

On August 19, 2013, one week after its debut, XRP was trading at 0.0046 dollars, according to the charts.

Ripple to USD Chart

On that day, investing 100 dollars in Ripple would have yielded 21,739 XRP. This investment would have grown to 10,000 dollars throughout the day.