How to Start Investing in crypto with $500

Cryptocurrency is undeniably growing fast and has become a popular investment option for many people. Popularly recognized cryptos include Bitcoin, Ethereum, Ripple, Litecoin, and Dash. Professional traders have been using these cryptocurrencies as an asset class for years, and they are now being used by retail investors too.

The main reason cryptocurrency is so attractive is that it offers an alternative way of payment and store of value. Moreover, cryptocurrencies like Bitcoin are not controlled by any central authority such as governments or banks. This means that no one is regulating them, which gives rise to their popularity.

With that in mind, many people dream of making big money from cryptocurrencies, but most of them don’t know where to begin. This article, therefore, seeks to help you understand the basics of cryptocurrency and how you can get started investing in it with just 500.

Tips to start investing in crypto with 500

You need to consider several key things when starting out on your journey into cryptocurrency trading. These tips will help you get started and ensure that you make the right decisions while learning about the industry.

1 Know what you’re engaging in

Before you even think of investing in anything, you must first understand what you are involved in. Cryptocurrencies are volatile investments, and if you do not fully understand their nature, you could be at risk of losing all of your hard-earned cash. You should also be aware of the risks associated with investing in cryptocurrencies. For example, you may find that some coins are highly speculative and risky. You can also run into problems with scams and frauds. So, before you decide to invest in something, you must first research it thoroughly.

2. Keep in mind that the past is past

A mistake several novice investors make is comparing the past results. The truth is that the price of cryptocurrencies fluctuates quite often. When you buy a coin, you must always remember that the past is past and that the price might drop tomorrow. It would be wise to keep this in mind when deciding whether or not to sell your coins. If you do not want to miss out on future gains, you must learn to accept losses. With that in mind, you shouldn’t compare what a coin has performed before with what it’s doing today. Doing so will only lead to disappointment.

3. Watch that Volatility

When you invest in cryptocurrencies, you must realize that the price of a coin will fluctuate. This is because the market is extremely volatile. As a result, you must always watch the fluctuations of the price of a coin. The best thing to do is to avoid buying a coin unless the price is low enough to feel comfortable with the amount you are willing to spend. You should also avoid selling a coin until the price is high enough for you to earn back what you spent.

4. Manage Your Risk

Risk management is very important when investing in cryptocurrencies. Before you start investing in anything, you should clearly understand the risks involved. You must also be able to manage these risks. There are certain ways to reduce the risk of investing in cryptocurrencies. First, you must choose a reputable exchange platform. Second, you should diversify your portfolio. Third, you should use stop-loss orders. Fourth, you should never invest more than you can handle financially. Lastly, you should always monitor your investment.

5. Don’t invest more than you’ll want/afford to lose

Investing in cryptocurrencies is a great way to make money, but it is also a great way to lose money. You should never invest more than what you can afford to lose. Therefore, you should never invest in anything without knowing exactly how much you can afford to lose from an investment. Once you know the maximum amount that you can lose, you should limit how much you are willing to invest.

6. Learn how to trade

Cryptocurrency trading is different from traditional stock trading. To trade successfully, you need to learn how to read charts and follow trends. Also, you should develop the ability to identify which coins are undervalued and which ones are overvalued. You should also learn to use technical analysis tools such as moving averages. These tools help you determine where the market is heading next.

7. Use a trading strategy

Most successful crypto investors can attest to the fact that their success was largely based on their trading strategies. A good trading strategy involves using technical indicators and chart patterns to predict future prices. However, some people prefer to rely on fundamental data instead. Fundamental traders look at things like supply and demand, company fundamentals, and other factors to decide if a coin is worth investing in.

8. Stay away from scams

There are many cryptocurrency scams out there. Some scammers will try to trick you into believing that they are legitimate companies or individuals. They may even ask you to deposit funds before you get any returns. If you find yourself dealing with one of these scam artists, just walk away.

9. Never invest all your savings in cryptocurrencies

Putting all of your savings in cryptocurrencies is not wise because this could leave you vulnerable to losing everything. It is better to invest small amounts of money into various cryptocurrencies to avoid running out of money too quickly.


In a nutshell, Crypto trading is one of the most exciting things that you can do online. While there are many different types of cryptocurrency exchanges, each comes with its own pros and cons. Some are better suited for beginners, while others are geared towards experienced traders. The best thing for you to do is to research each type of exchange thoroughly. This way, you will be able to pick the right one for you. Once you have decided on a particular exchange, you should sign up and begin trading immediately. The sooner you start trading, the faster you will see results.