How To Trade Crypto With $100?
To trade crypto with $100 you need:
-
Create an account on the platform
-
Log into your account
-
Fund your account with $100
-
Buy a stablecoin
-
Find cryptocurrency to buy
In recent times, crypto trading has emerged from the annals of obscurity to becoming one of the most lucrative trading endeavors.
Crypto trading refers to the buying and selling of blockchain-backed digital assets and currencies for profit.
This article discusses crypto trading vis-a-vis the steps to investing with as low as $100. It answers the most important questions of how to trade crypto with 100 bucks, whether Can I get rich trading cryptocurrencies and other important questions.
-
Can I start crypto trading with $100?
Yes, you can start trading with as low as $100
-
Can you day trade with $100?
You can day trade with $100. However, the higher the capital the higher the potential returns.
-
Can I trade crypto with $1
Depending on the exchange platform, you can trade crypto with $1
-
How much will $100 of Bitcoin be worth in 10 years?
It is difficult to say with certainty how much $100 worth of Bitcoin will be worth in 10 years but chances are that it will be worth significantly higher than it is now.
Can you become a crypto trader with only $100?
While you can become a crypto trader with only $100, you may want to up the ante as trading with a meager $100 may not be a good idea in the long run. This is because the trading capital determines the profit you can make on every trade. Here is an illustration to put things in proper perspective.
Assume that:
A started trading by purchasing $100 worth of Bitcoin while B on the other hand started by investing $1000 worth of Bitcoin.
If Bitcoin recorded a 5% increase in value, A's profit would be 5% of $100 = $5 while B's profit would be 5% of $1000 = $50.
To put it simply, while there is no bar to the amount you can start trading with, your capital ultimately determines how much you can make in profit. However, TU experts recommend starting with as low as $100 for a beginner seeking to master the market before going the whole hog.
Best cryptocurrency exchanges
How to trade crypto with $100: Step-by-step guide
Before explaining how to trade crypto with $100 you need to understand what crypto exchange platforms are and how they work. Think of a crypto exchange platform as a market where cryptocurrency and other digital assets are traded. Crypto exchange platforms facilitate broad-scale crypto transactions including buying, selling, and swapping using fiat currencies.
There are several crypto exchange platforms including Bybit, Binance, Kraken, Coinbase, and Gemini to consider for a secure crypto transaction. For our step-by-step guide to learning how to start crypto trading with $100, we shall use the Bybit exchange platform. This is because Bybit is the undisputed leader in offering secure, seamless, and transparent crypto trading services, especially for beginners testing the waters of digital trading for profitability.
It is important to note that other exchange platforms including Binance and Coinbase use a similar algorithm as Bybit to enhance their crypto trading capacity. Here is a step-by-step guide to trading cryptocurrency with a hundred bucks.
Step 1
The first step to trading through Bybit is to create an account on the platform. The platform allows users to create an account with their phone numbers or email addresses through the signup button on the platform's website or application if they prefer. Supply the necessary information and verify your account by inputting the verification code sent to your phone number or email depending on the preferred option.
Step 2
After creating a Bybit account, it is important to log into your account by clicking on the login button on the platform's website. Input the necessary login details including phone number or email address and password to login into the platform.
Step 3
The next step is to fund your account with $100 after logging in. Accounts can be funded in a variety of ways including through crypto wallets, fiat deposits, visa/MasterCard, and crypto exchange platforms.
Step 4
After funding your account, it is best to buy a stablecoin. This is because stablecoins including Bitcoin, USDT, and Ethereum as their name suggests enjoy price stability. After all, they are pegged to a fiat currency and have a limited supply. Also, stablecoins can be paired with several cryptocurrencies, which enables you to trade a limitless number of cryptocurrencies for profit.
Step 5
The last but not the least important step is to search for a cryptocurrency to purchase. Purchase decisions are best based on the crypto's price performance over a period, trading strategy, supply, utility, promoters and their antecedents, and white papers.
Is $100 actually enough to start a career in crypto trading?
As previously stated, there is no bar to the amount of money you can launch your trading career. However, the question begging for an answer remains: is it advisable to start a crypto trading career with 100 bucks?
While starting a crypto trading career with $100 is possible, a low entry threshold significantly affects your potential returns, albeit, negatively. It also limits your trading strategy to long-term strategies by rendering short-term strategies ineffective and less profitable.
For instance, traders with a low entry threshold of $100 will find it difficult to profit from short-term trading strategies like scalping, and dollar cost averaging. To put things in proper perspective, we shall discuss the aforementioned strategies in light of two different entry thresholds.
Scalping
Cryptocurrencies are inherently volatile. They are prone to constant price movements. Users of the scalping trading strategy focus on minute price changes over a small period. They exit their trading position and liquidate earnings as soon as there is a small upward price movement.
No matter how seemingly insignificant the upward price movement might be, a high entry threshold guarantees significant profit from every upward price movement. The same cannot be said for a low entry threshold of $100
For instance, A launches his crypto career by buying $40,000 worth of Bitcoin. Using the scalping strategy, he exits his trading position after Bitcoin gains 2% in upward price movement within a few minutes. A's profit will be 2% of $40,000 which equals $800.
Similarly, If A launches his crypto career by buying $100 worth of Bitcoin and using the scalping strategy, he exits his position after Bitcoin gains 2% in upward price movement within a few minutes. A's profit will be 2% of $100 which equals $2.
Dollar cost averaging
This strategy is best suited for beginners with no technical analysis and other crypto price movement analysis skills. The Dollar Cost Averaging strategy recommends dividing the trading capital and spreading it on several Cryptocurrencies within a predetermined timeline.
For example, let us assume that A intends to launch his career with $100, he can divide his capital into small bits of $10 in 10 places which will then be used to buy 10 separate cryptocurrencies within a predetermined time frame. The end game is to maximize every upward price swing and hedge against every downward price fluctuation. A Low entry threshold of $100 prevents you from buying a significant amount of several cryptocurrencies at the same time, thereby limiting the potential return on investment.
Can I get rich in crypto trading?
It is possible to get rich by trading cryptocurrency. However, it is important to note that crypto trading is prone to price volatility which may be harmful to your finances. It is best to have a realistic mindset and expectations before joining the raging crypto fray.
Crypto trading is not a risk-free shortcut to getting rich. The digital asset's volatile nature predisposes traders to trading risk, which is best addressed with the right trading strategy and a full understanding of its intricacies. TU experts recommend investing in whatever you can afford to lose.
Before drawing a $100 crypto trading plan or investing any amount in the crypto market, here are some key points to consider:
Education and skill
Education and skills are the bedrock of every successful crypto trader. The path to getting rich through crypto trading is laced with a deep-rooted understanding of crypto trading achieved through rigorous studies. Education provides you with the necessary skills to identify worthy coins to invest. It also provides the necessary technical analysis skills to predict crypto price movements and trends for informed trading decisions.
Risk management
Crypto investing is an inherently risky venture. It is crucial to master the psychology of trading and not make impulsive trading decisions without identifying potential risks and how best to navigate them. Risk management encompasses trading strategy, capital allocation, trading tools, and portfolio diversification. Learning how to manage risk is much more important than learning how to trade with $100.
Scams
Compared to its older cousins, crypto investment is scarcely regulated. This creates a loophole for unscrupulous elements
Pros and cons of crypto trading with $100
You need to try crypto trading with $100 if you are yet to hone your trading skills.
You need not try crypto trading with $100 if you have achieved mastery and perfected your trading skills.
Alternative ways to make money in crypto without actually trading
-
Staking. Think of crypto staking as putting your money in a deposit account which allows you to earn on your idle cash. Staking allows you to earn from idle cryptocurrencies without actively trading them. This is because the blockchain hosting the cryptocurrency puts it to work, enabling you to share from the work proceeds. Quite, unfortunately, not all cryptocurrencies support staking.
-
Airdrops. This is a crypto marketing strategy where cryptocurrencies or tokens are sent to random wallets for free or in exchange for small services or tasks. These cryptocurrencies can then be exchanged for money.
-
Referral programs. Several exchange platforms have crypto referral programs that allow users to earn a commission for referring others to an exchange platform.
-
Lending. Some exchange platforms allow you to earn interest on your crypto assets by lending them out.
Team that worked on the article
Glory is a professional writer for the Traders Union website with over 5 years of experience in creating content in the areas of NFT, Crypto, Metaverse, Blockchain, or Web3 in general. Over the last couple of years, Glory has also traded on different cryptocurrency and NFT platforms including Binance, Coinbase, Opensea, and others.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Tobi Opeyemi Amure is an editor and expert writer with over 7 years of experience. In 2023, Tobi joined the Traders Union team as an editor and fact checker, making sure to deliver trustworthy and reliable content. The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options.
Tobi Opeyemi Amure motto: The journey of a thousand miles begins with a single step.