If you're a beginner in crypto and have limited money to invest, it's easy to get excited about buying many different coins. However, this can lead to mistakes, like spreading your money too thin and running out of backup funds. If you only have $100 to invest, it’s important to be smart about how you manage your money.
The Problem with Investing in Too Many Coins
When you invest in many coins with a small amount of money, it’s hard to keep track of each one. You may also not have enough backup money if the market goes down. Without backup funds, you may not be able to buy more of your chosen coin when the price drops.
Why You Should Focus on One Coin?
1. Easier to Manage: When you invest in just one coin, it’s much easier to keep track of how it’s doing and make smart decisions.
2. Backup Funds: By putting some of your money aside for backup, you can buy more of the same coin if the price goes down.
3. Less Risk: Focusing on one coin keeps your investment simple and easier to manage.
How to Manage $100
- 50% for the Coin: Invest half of your money in your chosen coin.
- 30% for Backup: Set aside 30% to buy more of the coin if needed.
- 20% Emergency Fund: Keep 20% for emergencies or unexpected needs.
Conclusion
For small investors, it’s better to focus on one coin and keep enough backup funds. This way, you can track your investment, manage risks, and be ready to act if the market changes. This simple approach can help you do better in the crypto market.