Is investing in cryptocurrencies with little money profitable?

Investing in cryptocurrencies does not require having a large sum of capital to get started in this exciting and innovative market. Unlike other asset classes, cryptocurrencies allow us to invest fractions of them in order to gain exposure to these innovative assets. Let's see then if we can really invest in cryptocurrencies with little money...

Is it profitable to invest in cryptocurrencies with little money?

Fortunately for you, the answer is yes. Investing in cryptocurrencies does not require having a large sum of capital to get started in this exciting and innovative market. There are many platforms that allow us to invest in cryptocurrencies with sums of money ranging from 10 dollars. It all depends on the investment time horizon you have in mind. During the bullish rally of 2021, it was possible to make an investment profitable with an extremely low investment in any type of cryptocurrency, something that in turn is not good. This is because during that time we could invest in any asset regardless of whether it had real value given the hype that generated the revaluations of the main market assets such as Bitcoin or Ethereum by managing to surpass their old historical highs. But let's give an example to put ourselves in context. Imagine that we had invested $100 in Ethereum during the time of lockdowns in 2020. The ETH market floor was above $87 on March 13, 2020, so at that time our investment would have a value of 1,15 ETH. If we maintained this investment until we reached Ethereum's first all-time high of that rally ($4.380 on May 12, 2021), our investment of $100 at a rate of 1,15 ETH would have appreciated to $5.037, the equivalent of one 4.866% in just 14 months or an astonishing 347% monthly profitability.

Which cryptocurrency has the most future if you are a newbie?

If you are a newbie and are taking your first steps in the cryptocurrency ecosystem, perhaps you find yourself in the situation that we have all seen before; What cryptocurrencies can I invest in? You can answer this question quickly, you must look at what has previously happened in the cryptocurrency ecosystem to discover which are the best cryptocurrencies to invest in. For example, you can look at the ten best cryptocurrencies by market capitalization to get an idea of ​​the projects that investors trust the most when depositing their capital in them, ruling out that. stablecoins that will not generate any returns unless you are going to do yield farming with them.

As a personal tip, within Coinmarketcap you can go to the "Categories" section to view the different collections of assets available, from trend tracking such as the metaverse, artificial intelligence, blockchain ecosystem tokens, NFTs, decentralized finance (DeFi ) or portfolio monitoring of large cryptocurrency investment funds. Always remember not to put all your investments in the same asset, since this way you diversify both the risk and the potential benefits in the different cryptocurrencies you invest.

Invest 10 euros in cryptocurrencies every month?

This is another of the efficient ways that we can take advantage of to invest in cryptocurrencies, better known as the "average cost effect." In this way we can achieve an average purchase price in our cryptocurrencies, which allows us to manage the risk of an investment more efficiently than suddenly making a purchase of a large sum of money and at the same time being able to lower the average price of purchase of cryptocurrencies.

As we see in the graph above, by making a periodic purchase of cryptocurrencies on the 1st of each month during the last year, we managed to make the purchase less than 50% of the way from last year's maximum, which means that of 12 purchases, 8 of them will generate a minimum of 50% profitability if said maximum is recovered.

Best platform to buy cryptocurrencies in Spain.

One of the best platforms to buy cryptocurrencies in Spain is the Bitget cryptocurrency exchange. This exchange was founded during 2018, which shows us that it is an established exchange that has managed to maintain itself in both bear and bull markets. It has a wide variety of products, as well as futures trading without the need to carry out the KYC process, as well as the possibility of depositing euros through SEPA transfers. At the same time, it has a wide variety of assets and investment products, as well as promotions for newcomer users and very competitive commissions compared to other centralized exchanges. At the same time, it has its own native token, the BGB, which has notably resisted the ups and downs of this bear market.