Why is it NOT advisable to invest with very little capital in cryptocurrencies?
Entering the crypto world with little money seems like a good idea, but there are several points you should consider before doing so:
๐น 1. Fees affect more
When you trade with little capital, trading and network fees can eat up a large part of your profits.
๐ Example: If you invest $20 and pay $1 in fees, youโve already lost 5% just in fees.
๐น 2. Risk of frustration
With little capital, even if the market rises sharply, the profits can be minimal.
๐ Investing $50 and earning 20% = just $10 in profit. This leads many to take excessive risks to 'speed up' results.
๐น 3. Difficult diversification
With very little capital, it is almost impossible to spread your portfolio across Bitcoin, Ethereum, altcoins, and stablecoins. This leaves you more exposed to a single asset.
๐น 4. Greater temptation for leverage
Many who start with little capital seek to 'multiply quickly' using futures with high leverage. The result is almost always the same: liquidation.
๐ Conclusion
Itโs not about having a fortune, but about having enough capital to:
Cover fees without being too affected.
Diversify your portfolio.
Have realistic profit expectations.
๐ก Tip: If your capital is very low, start by learning and practicing with small amounts. But think long-term: save, increase your capital, and then invest strategically.
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