What Cryptocurrencies to Invest in 2024?February 5, 2024
🎉🚀 We are celebrating the second anniversary of EazyBotFebruary 14, 2024
Digital assets are increasingly becoming a popular way to generate profits. Many people have managed to achieve really large amounts in this industry, especially if they invested in Bitcoin shortly after it appeared on the market. However, is it still profitable to allocate funds to cryptocurrencies today? Do you need to have huge resources, or is it possible to invest with an amount of around 100 or 200 USD? We will delve into this topic today.
Do you want to know if the cryptocurrency market is a good space to invest small amounts? How to do it wisely to increase the chance of success and minimize the risk of loss? You can read about it below.
The initial price of Bitcoin – the beginnings of the crypto world
Although the history of cryptocurrencies is not very long, it is really interesting and can become an inspiration for potential investors. It all actually started when the first block of Bitcoins was mined by Satoshi Nakamoto. This happened on October 5, 2009 – this event is even referred to as the genesis. For the first time, the Bitcoin exchange rate was set based on the costs of the initial mining. At that time, one could get as many as 1309 Bitcoins for one US dollar.
And what is it like now? Despite fluctuations in the market and several spectacular drops, Bitcoin has significantly gained in value. In mid-February 2024, its value is about $48,000. However, many experts argue that by the end of this year, it will break the $60,000 barrier. Quite a good return on investment, isn’t it?
The way to invest small amounts in Bitcoin and potential profits – short-term vs. long-term investments
How to invest in cryptocurrencies to make a profit? Various investment options are used for this purpose. Their basic division distinguishes:
- earning in the long-term perspective,
- quick profits from trading cryptocurrencies.
In the first model, a larger amount is usually allocated to purchase a specific cryptocurrency, then to store it in a safe cryptocurrency wallet and forget about it for several years, not looking at potential exchange rate fluctuations and market trends. It happens that in this model, smaller amounts are also allocated at regular intervals to buy cryptocurrencies. In this case, the focus is usually on larger coins with an already established position on the cryptocurrency exchange, such as Bitcoin or Ethereum. Although, of course, this involves some risk, it is lower than with starting projects.
You can also trade cryptocurrencies. Trading assumes a short time perspective and earning on the difference in exchange rates on a given day, over a day or a week (on the same or different cryptographic exchanges). You can trade on your own, use a broker, and also automated tools like EazyBot, where through special software (website or mobile application), you can earn on crypto transactions. However, effective trading requires time, knowledge, continuous tracking of rates, and intuition about how trends will develop in the coming weeks.
Regular investing of small amounts on cryptocurrency exchanges
Purchasing Bitcoin and other cryptocurrencies can be profitable, even if you don’t have a huge capital to start with. Of course, larger amounts often lead to larger profits, although such an investment in cryptocurrencies is simultaneously associated with a significantly greater risk of substantial loss.
However, there is another way to approach this. The idea is to regularly invest small amounts. This increases control over actions and the ability to respond to exchange rate changes. It also allows not only to use Bitcoin but also its fractional parts, as well as other cryptocurrencies, to introduce useful diversification.
Is Bitcoin the only option? – Various ways to earn on cryptocurrencies
It might seem that BTC is the best cryptocurrency for investors. However, its price is breaking records. Fortunately for smaller investors, cryptocurrency exchanges (and the automated apps operating on them) allow for the purchase of fractional parts of the coin. As a result, more people can afford to buy Bitcoins, who would not be able to afford to acquire one or more Bitcoins. There is also a chance that they will still make a good profit on it – it just takes a little patience, while of course, observing the exchange rates on cryptocurrency exchanges. This shows that even despite high prices, it is still worth investing, even if you do not have a large budget.
Another solution is to allocate money to buy Satoshi. Just as zlotys are divided into groszy, so Bitcoins are divided into Satoshis. However, the conversion rate here has slightly different proportions. 1 BTC equals as much as 100 million SAT. This significantly increases the accessibility of this currency for a wide range of users. And as the value of Bitcoin increases, so does the price of Satoshis.
Cryptocurrency portfolio diversification
Purchasing Bitcoins is not the only way to make money on cryptocurrencies. You can also invest in other coins – both those already stable in the market (or in their parts) and new projects with high growth potential that are still priced low, much like Bitcoin in the beginning.
For anyone involved in investing (not just in digital currencies based on Blockchain), such an approach can be a good method. Having various assets within a portfolio reduces the risk of painful loss and gives a greater chance of success even with a relatively small budget.
Investing small amounts in cryptocurrencies – summary
Investing in cryptocurrencies can be very profitable – these are assets that provide financial benefits in both the short and long term, even when you don’t have large funds. You can earn on smaller coins, fractional parts of the largest cryptocurrencies, and on diversifying projects in your portfolio. However, it’s always important to remember that these are assets characterized by high volatility, and every investment carries the risk of loss. Therefore, you should always only invest as much as you are prepared to lose.