How to Invest Your First $100 in Crypto and Make a Profit

The crypto market is brimming with opportunities and often people wonder just how much is needed to get in on the action.

One popularly held belief among business folks is that it is way easier to flip 1 million dollars to 2 million dollars than it is to flip nothing to 1 million dollars.

This belief has some elements of truths to it. Capital is vital for any meaningful investments or financial venture.

Building wealth takes enormous time, dedication, and more importantly patience.

It however also requires one to get real and make smart moves with their money.

Whether via investments in stocks or a business, you need to put your money to work before it can bear more.

What if all you have got in your bank account to build this wealth is a paltry $100?

It may seem like a laughable sum but it’s the reality of some folks out there. It may not be worth much but in the right business or with the right investment it might just be enough.

I cannot speak for other financial markets, but the cryptocurrency market has room for everyone; whales and fingerlings alike. Just find your corner of the crypto ocean and grow.

Today, I’ll help you explore the crypto market and open your eyes to the opportunities your $100 can afford.

Remember, I am not your financial advisor, just here to give you a template, one which you should feel free to discard.

Choose an Exchange with Fewer Fees

It’s bad enough that you are entering a 2 trillion dollar market with just $100 but you know what you don’t want to do? Splice away more dollars on unnecessary fees and bills.

Choose a reputable exchange that charges little to no fees for transactions. Kucoin, Gate, and Coinbase charge fees for buying or selling cryptocurrencies.

The fees range from 5 cents to 25 cents but could easily add up to a dollar or two in the course of spending your $100. Binance has zero fees for transactions carried out on spot.

They also have the largest daily trading volume of any crypto exchange. This is of course not an endorsement of Binance but do your due diligence when choosing an exchange.

Hunt for Microcaps and Medium Cap Gems

This is a must. Unless you are okay with a 2X on your $100 after 1 year.

If investing for maximum return is your goal, it would be naïve to invest in cryptocurrencies with large market caps like Bitcoin and Ethereum.

This is a mistake a lot of newbies make when investing in crypto; they go for the ‘established coins’ which more often than not have seen most of their gains already.

A good place to look for coins would be those with medium cap ($200M to $2B) and those with microcaps (Less than $100M).

The coins in this category have the most growth potential and could easily flip your $100 to a $1000 or $10,000 even.

An important caveat to note is that the smaller the market cap of a cryptocurrency, the higher the risk associated with it. Microcaps rug more easily than cryptocurrencies with medium and large Mcaps.

So, invest as your risk appetite permits. You can use CoinGecko and CoinMarketCap to check the Mcaps of any cryptocurrency.

Have a Buy and Sell strategy

You need a strategy when buying or selling.

Let’s start with buying.

How do you want to buy your first coins? Do you want to spend the entire $100 on just one project or do you wish to spread it out on multiple projects?

I, personally would advise that you don’t buy more than three coins with $100. This is to prevent you from spreading yourself thin on so many projects.

If you decide to buy just one coin, it would be wise to dollar cost average (DCA) on your purchases. This involves buying the same coin at different prices.

For instance, you could buy $40 worth of coin X at a price of $0.8 and then buy more units of say, $30 if it dips to $0.5 and a final batch of $30 at $0.4.

As for a sell strategy, this could mean either of two things; taking profits or complete sell-off.

The moment you buy your first cryptocurrencies, it is ideal to have a strategy for when and how to sell them either in profit or loss (Yes! You may need to sell at a loss sometimes too.)

You could have a strategy where you only take back your capital after appreciable gain. Leaving the coin to grow on the profit you gained.

Another strategy could be to sell off the asset entirely after a certain appreciation, for instance, 400% or 500%. On the flip side, you could decide to sell at a loss if you no longer feel confident about the prospects of a project and feel the need to invest elsewhere.

Follow the Money

The crypto market is broad and there are coins and tokens for everything from smart contracts to NFTs and online gaming.

Choosing a sector to invest in can be challenging but if you are unsure of where to put your money, then follow the money.

In the last year, Institutional investors have pumped enormous sums of money into Memecoins, Defi, Smart contract tokens and Play to earn (P2E) tokens.

Those sectors of the crypto market saw enormous growth and coins in those ecosystems did easy 10X and 20x. Recently, the buzz in crypto has been all about metaverse coins and web 3.0 coins. You may want to look at coins in those two sectors to find gems worth your $100.

HODL.

Unless what you bought is a shitcoin, your $100 won’t triple or crash in 5 minutes, so find other things to do with your time while you hodl your coins.

You could learn more about cryptocurrencies and blockchain technology and what exciting new projects are about to launch. The patient get rewarded in the crypto market.

Just make sure to do enough research before investing in any project. So long as the coin has good fundamentals, it will eventually reward your patience.

$100 may be worth much or maybe worth nothing, it depends on what you do with it. I started my crypto journey with way less than that amount but quadrupled my initial capital within 6 months. Such is the type of opportunity the crypto market has on offer.

Get in there and make the most of your $100. NFA!!!