One of the questions we often see people asking on public forums and the internet is whether a small amount like INR 100 be invested in crypto and if this amount truly makes any difference to one’s portfolio. The answer is, Yes. One can surely invest with an amount as little as INR 100, but to build a sizable portfolio which can generate passive returns, one needs to be disciplined and should take the act of investing seriously with clear and tangible goals in mind. In this blog, we will explore the benefits of making small investments and how they can have a positive impact on one’s investing journey.
Accessibility of Crypto Investments
Fractional Ownership
Crypto tokens can be bought in fractional amounts. What this essentially means is that you can buy any quantity of crypto which does not constitute one entire unit. There are several advantages to fractional ownership which are detailed below.
- Firstly, it enables individuals to invest in high-priced crypto assets with limited capital, increasing accessibility. It also promotes diversification by allowing investors to spread their funds across multiple assets, reducing risk.
- Additionally, fractional ownership enhances liquidity, as users can easily buy and sell small portions of assets. This democratizes the crypto market, attracting a broader range of participants.
- Furthermore, it simplifies inheritance planning and facilitates collaborative investment strategies. This is particularly very helpful in case you would like to pass on your investments to any members of your family.
Read more: Starter Guide On Crypto Investing
Power of being consistent in investing
Consistency is one of the most overlooked aspects of investing. Almost every great investor who has succeeded in the financial markets emphasises the power of consistency and how it helps you have control over your emotions.
- Regularly investing small amounts in crypto can be a powerful strategy. It fosters investing discipline by encouraging consistent contributions, helping you avoid impulsive decisions. Market movements become valuable lessons, as you gain experience without risking large sums.
- Cost averaging( buying the same amount at regular intervals) minimizes the impact of price volatility by buying more when prices are low and less when the price is high, potentially reducing risk.
Read more: What is Dollar Cost Averaging in Crypto
- The real strength lies in consistency. Over time, small, consistent investments can accumulate into substantial holdings, harnessing the power of compounding. This approach also reduces the pressure of timing the market perfectly.
Conclusion
Investing is more like an infinite game where there are no fixed styles or predetermined endpoints. One needs to be adaptable, and well-informed, perform thorough due diligence and make sure that one fully comprehends the risks involved. Investors also need to know that, while there are several cryptos which are priced below INR 100, the risk of making a bad investment remains the same. One must keep in mind that, “getting rich overnight” is nothing but a trap. Consistency, due diligence and being compliant are strong pillars which can take your investing game far.
Read more: How To Choose A Crypto For Investing
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