This is the most common question I am getting from new people and even people who have little experience in crypto trading. How much amount do you need to start trading in crypto?
How do you get started and expectation?
Firstly, I believe you may want to start trading because of, a lot of social media influencers are talking about being financial freedom with the help of any trading. No matter forex, stocks, commodities or a cryptocurrency market. Or I believe you may hear some recent news about Bitcoin spike 100% or 200% in a matter of time. So here comes a truth about expectation in trading.
Did you notice what those influencers are doing in real life?
No!! Let me tell you. They are simply showing you big cars, big homes and big money they are earning from the social media profile by promoting digital courses, paid partnership, by taking subscription fees of webinars etc. They never perform trading only. They will have more than 3–4 income source. And after showing all that false story of trading, you will decide to jump into it with a $100 and expecting making $100,000 a month. HOW?? How is it possible? It will be 10,000% of the gain you are expecting.
The reality of trading:
Here is the thought you would always keep in mind:
The higher you invest, the higher return you will get
The above quote is the reality of starting a trading career or any investment. If you are starting at $100, then you would obviously make $10 when a coin moves 10% of the price. On the other side, a person started at $1000 will make $100 with the same percentage of move for the same coin. So, the question is how much amount you need to start trading in crypto?
How much amount do you need to start crypto trading?
There is no exact amount you can start with crypto but, yes you can calculate based on below information because the factors will be different for every user.
Ask these questions to your self.
- What is the amount you need to make a daily life wedge?
- What is the cost of electricity?
- What is the cost of a trading setup like a computer, internet, mobile phone?
So, let’s check one by one all parameters.
On the first point, let’s assume the day to day living expense is about $10.
The next and most important, if you are doing a job or having an existing business, then calculate the amount you are earning per hour. A basic amount I am considering here is $15 per hour * 8 hours a day = $120.
So, the total amount you are earning a day is roughly $100. Now you have decided to start a trading career, so this means that your first goal will be earning a higher amount of money then you are earning at this moment which is $100. For now, you are clear with the goal of how much earning you need to be profitable in trading compare to your current job or existing business.
So, a calculation based on investment amount and earning percentage a day will be as below.
||% of earning a day
If you are starting trading with $100 amount, then you would have to make a 100% profit in a single day. Similarly, if you are starting at $500, then you would have to earn 20% profit in a single day. Furthermore, on a larger amount like $5,000 you will need just 2% of earning a day.
Now you can see the clear difference between the higher and lower amount of investment, and it’s the return of investment. Along with the above table, you also need to consider the consistency of income in job and business. The income you are earning though job/business is consistent and not going to decrease unless and until unpredicted circumstances like a medical emergency or natural calamities.
Belongs to a new trader.
If you are new in trading, it is possible but tough to be a consistently profitable trader. It will take months to years to become a successful and consistently profitable trader.
As per the above details, you may have understood the important role of the initial amount to start trading in crypto.
In the end, just a small thing you need to keep in mind is. If I am making a certain amount of profit in a day, then is this worth to me or not?
- I made $50 a day it’s worth? NO
- I made $100 a day it’s worth? NO
- I made $200 a day it’s worth? YES
The answer is given by considering the example I gave earlier.
Finally, last but not least,
How much expectation can you have from the market daily?
The answer is 5 to 20% in the altcoin season with unlimited trading opportunity. In the business/job, you may hear catch the opportunity. Otherwise, you will regret it. That is 100% true for business and job not for trading.
In trading, you will have unlimited opportunities for trading to make 5 to 20% a day. If you miss one, you will get another one right after that. All you need is proper trading rules, skills to manage portfolio and risk, trading tools and patience.
To conclude, all you need is daily earning a goal and an amount which can give you the return of investment which is more than your current earning.
If you still have a question, then you can contact me 📞 in telegram and consult one-hour class to identify how much money you would need to start the crypto trading or to understand the basic rules of crypto trading.
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