Why $ 1,000 is enough to start making the first profitable transactions on the crypto market and what needs to be done for this
Many newbies start trading cryptocurrency with a small deposit ($ 100 – $ 1,000). Topplabs.org experts explained what the peculiarity of working with a small initial capital is and gave recommendations to novice traders.
Easy start
The cryptocurrency market makes it possible to start trading with almost any amount, says Vitaly Kirpichev, Development Director of TradingView in Russia. According to him, you can always find an exchange with loyal conditions for the deposit and an asset that does not require huge investments.
“In this market, it is possible to apply approaches that were previously available only to owners of large capital. You can create your own mini-portfolio or use a trading system according to the classic principles of safe trading, "Kirpichev said.
The expert recommends new market participants not to invest all their capital in one asset, not to trade with leverage, and also not to work without a specific trading system.
Normal capital to start
$ 1,000 is a completely normal deposit in order to comply with money management and diversification principles, says Andrey Podolyan, CEO of Cryptorg crypto exchange. In his opinion, it is unlikely that it will be possible to make money on the spot market with such capital, therefore, it may be more interesting to work with futures here.
“At the same time, it is not necessary to take some kind of leverage, it’s just that futures are more understandable and you can make money, including on a falling market,” the expert noted.
Also, the futures market may be more beginner-oriented in that the minimum order volume for futures is usually lower than that for spot markets, which means that more trading pairs can be taken into operation, Podolyan added. He advised novice traders to trade only well-known tokens, place stop orders and correctly distribute the working volume in the transaction so that they can be averaged.
Consistent approach
If a newcomer plans to enter the crypto market, then the sequential purchase of digital assets can be an ideal strategy for him, advises Anton Kravchenko, CEO of Xena Financial Systems. According to him, following this strategy, it is necessary to choose a promising project once a month and invest $ 100 in it. In a year, the investor will invest $ 1.2 thousand in assets, and gain experience in investing in cryptocurrency.
“It will be both interesting and useful for the experience, you will be able to devote a little time to projects every month and learn to distinguish good projects from bad ones,” added Kravchenko.