Buying a small amount of crypto

Hi everyone

As bitcoin has done so well, I am thinking of investing a small amount (that it would be ok to lose) in the crypto area.

Was thinking Bitcoin, Ethereum, Chainlink, Litecoin. What do you think? Any other suggestions welcome.

Thanks

 

Hi Beginner1,
I am not going to give you advice regarding what to buy and whether to buy. Crypto's are a rollercoaster ride.
But I would suggest using btcmarkets.com.au if you want an exchange that is reasonable with fees and prices.
Good luck!

 

I don't really follow the logic here. A lot of us, myself included, would be very wary buying into a property market that has just boomed.

 

Yes, I understand the position with respect to property.

I had previously thought over the years that the crypto currencies would not last. However, I was wrong with that given how Bitcoin has lasted and reached very high prices. For that reason I thought I may give it a try (though I acknowledge I may likely have missed the biggest price rise). I am also thinking of the crypto that has not boomed to the same extent as Bitcoin.

We are not going to spend much (unlike our approach to property/shares where we are investing much more).

 

Wait until March before you buy any crypto IMO. Bitcoin has just had a 300% rise recently and will likely need time to consolidate / dip over February.

Yes go with 70% bitcoin, 20% ethereum and 10% chainlink. But make sure you do not hold them heading into 2022, unless your timeframe is very long-term.

 

Depending on your goals I think it’s ok to have some crypto exposure. Try ignore the FUD, ignore the hype and pumpers and don’t get FOMO. I think the greatest risk to a crypto investor is themselves - look after your private keys, don’t lose your passwords, take care with scammers.

As @Michael.Knight has said we already have had strong gains recently so one could wait for a dip. However, when the dip comes and there is fear and uncertainty will you be mentally strong enough to buy the dip? Furthermore, it is a weird feeling to dump cash into crypto - perhaps start with a small amount of BTC now and learn the process, learn how to get BTC off the exchange. get your ledger or wallet set up. Then, you can dip in again for more and so on.

Good luck! Ps nice profile pic

 

Thanks Michael for your thoughts - that’s very helpful.

 

Thanks db9 - yes, I think I will wait and buy in a dip and see how we go.

Great profile pic! (Pamcaso! )

 

Look into Cardano (top 10 market cap coin) - there's some interesting projects going on there. Have a look at Sheldon Evans' youtube channel too - he delves into how certain crypto's are bringing value to society and factors driving their growth in the shorter-term bull market and longer term.

 

Thanks NewInvestor2 - very interesting - have just had a look at this

 

Just looking into this further - what are your thoughts on Theta and Voyager?

 

If you want to have some exposure over the long term, I would personally stick to the 2 big coins: Bitcoin & Ethereum.
Remember that many of the altcoins you see today where not around a couple years ago, yet alone a couple years before that!
The crypto space is already speculative, you don't need to risk further by exposing yourself to smaller coins that may or may not stick around. Sure there are some crazy gains to be had if you pick the right ones, but chances of picking losers are much greater. At some point it becomes gambling more than investing.

This is not financial advice!

 

Thanks Ouga

 

Where do you buy your crypto? I looked at a few exchange platform such as coin base, binance... And the fees are expensive!

Transferring like $100 to BTC costs about $20 for binance and even more for coinbase or the other!!!

Any suggestions to save money?

 

I buy on binance. You can deposit AUD for 0 fees. Then you'll need to sell AUD for BUSD, which you can then use to buy crpyto. Occasionally there is slippage, but fees normally total to less than 0.5%.

 

Best way to buy crypto is to buy slowly, e.g. $100/wk. No one knows what the price will do in the short term, but there's a very solid chance BTC is greater than $1mil in 5 years time.

 

Cheaper than BTC Markets, which starts off with 0.85%.

It's interesting that CBA has linked up with Gemini Exchange. Their fees are expensive- $0.99-$2.99 for orders under $200, 1.49% for orders greater than $200!

 

Hi everyone I have the same question, how about Swyftx? Is it a good platform for beginners?

 

We use Binance and also btcmarkets.net.au - they are Australian and reasonable fees.

 

if you think BTC is likely to be $1m in 5 years then is doing it slowly etc 100 each week might be a big opportunity risk? If the goal is for the long term gain, the risk of loosing millions far outweights the consequences of overpay for 30-50% percent in the short term don't you think? I know i sounded a bit fomo, but it seem like logical/mathematically favourble to go hard and go quick as theres a significant chance that price is raising exponentially in function of time on average. Any attempt to time to buy in the dip cheaper than what you are paying now gets less probable as time goes by. Am i missing anything?