Investing in cryptocurrencies makes many people feel a thrilling chill. Especially if they have never done that before, it is usual to wonder if there’s a minimum that they are allowed to invest, whether that money will grow in the long run, etc.
Let’s check about that.
Can You Invest 100 Dollars In Ethereum?
You certainly can. With cryptocurrencies, you can invest as little as you want. 100 dollars is not a huge amount of money compared to how much one Ether coin is trading today, but you can buy only a fraction of a block.
The thing with investing in cryptocurrencies is that they are, in some ways, similar to investing in shares.
Their prices go up and down due to fluctuations on the whole crypto network. If you have a keen eye for business and market fluctuations, you can make money even if you start investing only a few dollars.
Some will say that it is comparable to gambling, but that is untrue. Especially in the case of Ether, a coin that has been up on top for a long time.
One valuable thing to know about investing in Ether is that you can trade it for a vast number of altcoins.
Even in the Ether network, you can trade ETH, ETC for different types of tokens. You can make all sorts of transactions, buy NFT, etc.
Why ETH Is Popular?
The Ethereum network is attractive for a lot of people. Investors keep their attentions undivided, and the network also calls the attention of miners and coders that want to appreciate the possibilities offered by it.
While some cryptocurrencies serve only as a monetary service, the Ethereum network has such a function but goes way beyond it.
Ethereum lets everyone use its language to create new applications and new tokens to run on the network.
Instead of making everyone use the same coins all the time, people can use different services inside of the same network.
For one, the popular NFTs are issued on the Ethereum network.
What Differentiates Ethereum From Bitcoin?
Many things differentiate Ethereum from Bitcoin. While Bitcoin is used mainly for monetary transactions, the Ethereum network allows users to create Decentralized Applications (DAPPS) to run on the network.
These DAPPS can be many things, letting users express their creativity without the authority of a centralized server.
Some DAPPS are exchanges inside the network itself. That means you can trade your Ether coins or ERC-20 tokens inside the blockchain without the need for third-party software. Idex, ForkDelta, and Bancor are some examples of that.
Aside from all of the described above, the validation time for Ether transactions is also much quicker than Bitcoin.
Ether transactions get validated in seconds, while Bitcoin miners take minutes to do the same.
Many are already familiar with the fact that Bitcoin has a fixed number of 21 million blocks. No one knows what will happen when the last block gets mined.
On the other hand, Ethereum has an unlimited supply of blocks. That is only coherent with its proposal of making the network available for anyone to create new applications and ERC-20 tokens.
What do you need to know before investing in crypto?
The first thing is getting clear about why you are investing in cryptocurrencies and what cryptocurrencies are. Are you investing because cryptos are trending now? Or do you get excited by the fluctuation and want to “gamble”?
Do you simply want to support the decentralized network? Once you decide what the reason is, you can start to figure out whether it is a good idea right now and how to do it.
As already said, cryptocurrencies fluctuate. That is the whole reason why it is possible to invest in them. You can gain money in the long run as well as you can lose money.
If you have only a few amounts of spare cash and are eager to invest, one good piece of advice is only to invest what you can afford to lose.
Before making any real investment, you should learn about the cryptocurrencies being traded today.
Look beyond Bitcoin and Ethereum. These are the most popular, but many other coins are traded too. Many people buy smaller coins for ease of trading, paying for services, etc.
However, even if you buy smaller coins, you need to know that their value is many times impacted by Bitcoin’s fluctuations.
As the biggest crypto coin in the network, its fluctuations create a ripple effect that impacts altcoins.
If you are in this enterprise for the money, it is still essential that you learn a few things about blockchain technology. For example, do you know how blockchain is possible?
Or what is the raison d’être of miners? To make the best investment possible, you must understand a bit of the technology behind cryptocurrencies.
One of the most important things regarding this aspect is understanding how coins are protected, and what makes transactions untraceable or nearly untraceable (this depends on the currency you will invest).
Some coins, for example, have a better application of safety algorithms than others. Bitcoin, as the first cryptocurrency, made itself known for purported security.
The truth is that you can trace someone’s identity on the Bitcoin blockchain if they always use the same randomly generated alphanumeric identity.
Many cryptocurrencies improved on that, making it possible to make transactions where all your data is kept safe, and you can’t be traced under any circumstances.
If you are an outsider of the crypto world and are getting into this trend only now, a good idea is to check forums and groups of people that mine or invest in crypto.
They might have divergent opinions, but once you start chatting with them, you can get a lot of info that you can’t find on guides. After all, ideas have more fluidity when you are chatting, and you can ask what you want to know exactly.
Articles like this one are like a textbook. Chatting with a crypto-insider would be like taking a class with a professor.
One of your ultimate sources of knowledge, though, should be a cryptocurrency’s white paper.
All of them have it, and they make it easily accessible for users to read. If you are interested in investing in some currency that doesn’t make its white paper available, you should take that as a bad sign.
On the white paper, there should be all information about the currency, as it is meant to entice people into investing or mining.
How to invest $100 in ETH?
Buying crypto coins is easier than it might look like. With only a few steps, you can buy your first ETH coins.
Step 1 – Find a wallet to store your crypto coins
To have access to any crypto coin, you need first to have an e-wallet or digital wallet. It will keep the data regarding your crypto possessions safe.
When you make transactions with crypto coins, the coins are taken from it or transferred into it. Different wallets let you do different things. You can check a list of wallets that support ETH
Some wallets are downloadable into your phone or your computer, while others are accessed through your preferred browser.
There is also the difference between hot and cold wallets. Hot wallets are connected to the internet, while cold ones are not. Cold wallets are safer.
You can select the wallet that benefits you the most from among the ones that support ETH. You can check them here.
Wallets work differently. The most tricky ones have a very comprehensive guide to help you when you are just starting. You can go for it with ease.
This is from Torus:
One of the easiest wallets to use is Coinbase Wallet. It is different from the regular Coinbase, which is a DCE (you will see about it below). It is currently available for iOS and Android. Learn about it here.
Step 2 – Find an exchange
If you are going to buy crypto coins, you need to find a trustable exchange. Digital Currency Exchanges (DCEs) are responsible for keeping your cryptocurrencies safe, but they also can trade your money for crypto coins and the other way around.
Other than that, you also use exchanges to do transactions with other physical people.
There are third-party exchanges and blockchain-powered, decentralized exchanges. Popular third-party exchanges include Coinbase, GDAX, Kraken, and Gemini. If you don’t choose any of them, that is okay too.
Blockchain-powered exchanges include ForkDelta and Bancor, as we already mentioned.
These decentralized exchanges won’t trade your fiat money for crypto coins. So, to start investing in cryptocurrencies, you need to start with a third-party exchange.
Step 3 – Set Up Your Info
We are using Coinbase as an example of what is required to create an account a DCE. You will need to enter a valid email and verify with your phone number.
Then, when you are logged in, you can see the options to buy and sell your coins as well as send and receive.
If you click on your name, you can find the settings. On settings you can add your preferred payment method and add your wallet where your coins will be stored.
When you click on Buy/Sell, you will be required to enter more info.
Step 4 – Set the currency to ETH
After everything is fine, you need to set the desired currency to ETH. Then, you need to select either the amount of ETH you want to buy or the amount in your local currency.
Step 5 – Select the payment method
DCEs offer many types of payment methods. Coinbase offers the following in the USA
- Bank account
- Debit card
- Wire transfer
Each payment method will link your account to the DCE. You just have to follow the instructions given, and you will be fine. You can click here to check everything about Coinbase’s payment methods.
Creating an account at a wallet and exchange is the easiest part when you want to start investing in cryptocurrency.
It is the part you have to worry about the least. What you need to take into consideration is what you are expecting from this enterprise.
Make yourself clear about what you want and read articles to clear your doubts. Only after that, it becomes safe to invest.