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.



MONERO (XMR)


MONERO (XMR) is well-known for its characteristics that make it a fully anonymous and untraceable money (unlike Bitcoin). It was established in May 2014 in a very secret manner (which fits nicely with the theme you'll see). On May 27, 2014, it had a value of 1.84 dollars.


Monero Charts

You would have received 54.34 XMR for 100 dollars. (Note that the XMR's price will be split by four the next year, reducing your original 100 dollars to less than 25).


This investment would be worth 5362 dollars at the moment.



DASH


In the crypto world, DASH is also a near-institution. It is a classic in any balanced wallet since it was the first coin to have a masternode design.


In February 2014, DASH became available on exchange platforms. It was trading at 0.91 dollars a week after its February 21st IPO, which would have purchased you 109.8 dollars.


This original investment would be worth 8400 dollars now.


Dash to USD Chart


Cybervein (CVT)


After going through the old guard, the draw's unpredictability enables us to look at Cybervein, a newer and, to be honest, rather obscure currency.


CVT debuted in April 2018, at the tail end of the initial coin offering (ICO) craze. With a solid valuation of €80 million, the project (which is concerned with big data and blockchain data storage) will be credited for still being alive. CVT began trading at 0.042 dollars and increased to 0.044 dollars seven days later.


If you had put 100 dollars into CVT, you would have gotten 2272 tokens, worth 172 dollars now.



TrustSwap (SWAP)

TrustSwap is a typical symbol of last summer's DeFi craziness. It doesn't have any distinguishing features other than the fact that it was launched at the appropriate moment, enabling it to climb to the 200th position in the rankings.


Your budget of the day would have enabled you to purchase 2500 SWAPs if they were launched on July 9, 2020 at a price of 0.04 dollars . After 5 months, the procedure has paid off, as your 2500 SWAPs are now worth 900 dollars.



TROY

The platform token TROY is seldom in the news, despite its 10 billion tokens in circulation and a market value of 23 million dollars. On December 5, 2019, €100 would have purchased 16,393 of these at a cost of €0.0061 each. This line would be glowing red in your wallet with a current value of 38.86 dollars, indicating that it is clearly not the correct horse (Troy, do you have it?).



Report

For each of the seven crypto currencies examined, we've included a summary of the characteristics we've just discussed. This is a chance to show how, if invested at the appropriate moment, in the proper currencies, and most all, if you haven't sold your investment since then, a sum as little as 100 dollars may have grown, if not boosted, an investor's portfolio on its own!


​Currency

​Invested

Tokens Number

​Purchase Price

​Valuation at 27/11/2020

Increase in value

​ETHEREUM (ETH)

$100

99.0099

$1.01

​$43 318

Profit $43 218

RIPPLE (XRP)

$100

21 739

$0.0046

$10 000

Profit $9 900

MONERO (XMR)

$100

54.34

$1.84

$5 362

Profit $5 262

DASH

$100

109.8

$0.91

$8 400

Profit $8 300

Cybervein (CVT)

$100

2272

$0.044

$172

Profit $72

TrustSwap (SWAP)

$100

2500

$0.04

$900

Profit $800

TROY

$100

16 393

$0.0061

$38.86

Loss $61.14

​$700

$68 190.86

Profit $67 490


These statistics, however, should be used with care for the following reasons:


  • There is a clear confirmation bias present. The market physiognomy was very different at the time of the introduction of currencies like XRP, Ethereum, or MONERO, making the identification of potential much less apparent than it is now, with hindsight.

  • A panel of eight additional crypto currencies would most likely provide less obfuscated findings.

  • This outcome is remarkable mainly in the sense that the owners of these assets, like genuine owners before the Eternal, were not enticed to liquidate their investments in the initial months or even years following their introduction, content with a few tens of percent profits.



What about Bitcoin, for example?


You'll have noticed that I didn't use Bitcoin as an example in this presentation, thanks to your keen insight.


The reason for this is simple: if you apply the same reading grid to the queen of crypto-currencies, you will soon be faced with astounding numbers, so stunning in fact that they may have a counter-productive impact in terms of my example...


Indeed, Bitcoin's value has increased by over ten million percent since its inception (no, there is no typo). Its price has therefore risen from practically nothing to around $20,000 at the end of 2017, a figure with which it has flirted again in recent days. Because everything about Bitcoin is exceptional, I'm not going to take the easy way around and tell you how much 100 dollars invested in Bitcoin in 2010 would be worth today...