If you’re the average modern investor, you probably have your eye on cryptocurrency and are considering purchasing some. After all, cryptos have delivered healthy returns year after year and this shows no signs of stopping anytime soon.
But how much are you willing to spend on crypto? It might be appealing to buy a single Bitcoin or Ether token but these will set you back thousands of dollars that not everyone has to spare. If you’re just getting into crypto, you might be wondering what the minimum amount of crypto you can buy is.
Lowest Amounts of Crypto You Can Buy
One of the first things to note is that the lowest amount of crypto you can invest in is not the same as the lowest amount that you can own. For example, the smallest indivisible amount of Bitcoin that can exist is 0.00000001 BTC, commonly called a Satoshi. While you can technically own a Satoshi, almost no platform will sell an amount that low to you.
For almost every crypto in the world, the lowest amount that you can invest is $1.
What Can You Do With Lowest Amounts
You might be wondering what you can do with the lowest amounts of crypto that you can buy. The reality is that there are several options at your disposal. You can hold on to these amounts for trading. You won’t make a lot of money from them but you can make something. You can also use your crypto for entertainment purposes. Many crypto casinos allow you to deposit and play with low amounts of money and if you look at some of the preferred ones here, you’ll see that this applies to many tokens.
Factors Affecting the Lowest Amounts
We’ve already established that there are minimum amounts that you can own of most crypto but that this differs from the amount that you can buy.
There are also several factors that affect this, some of which are as follows:
- Crypto design: The Satoshi, by design, is the smallest amount of crypto that you can own and no one can sell you a lower amount even if they want to. This principle applies to several other cryptos and essentially puts a cap on the minimum amount of crypto that you can invest in.
- Your Platform of Choice: To make sure that they stay profitable, most exchanges that deal in cryptocurrency have minimum order requirements and if you use them, you are limited in terms of how little crypto you can get your hands on. This also applies to whatever scheme you want to invest in. If you want to take part in a crypto pre-sale, for example, you’ll probably need to make a minimum purchase.
- Crypto conversion rates: Depending on the fiat currency you are converting from, you could be limited in terms of how much crypto you can buy. Of course, this varies from place to place.
Investing With Low Funds
If you choose to buy a smaller amount of crypto, you need not be disheartened. There are valid ways to make the most of a small investment amount:
- Stake your tokens: If you buy a token based on a proof-of-stake consensus, you can stake it and earn interest.
- Buy tokenized assets: There are crypto projects that allow investors to pool their resources together, invest in a larger asset, and split the profits. You might want to opt for one of these.
- Buy high-growth tokens: Buy cryptos that have a high growth potential to slowly grow your portfolio over time.