BitBit Financial is owned by iMining Technologies, a public company traded on TSXV under IMIN.

How much do I need to get started with crypto?

You can start out with as little as $10, $1,000, $100,000 or more! As a rule of thumb, always do your research and only invest what you are comfortable with. Cryptocurrencies are often volatile, meaning the price can fluctuate frequently, so it is important you understand what you are getting into.

Investment management. Portfolio diversification.

Lesson 04

So what are cryptocurrencies?

A common misconception people have when it comes to cryptocurrencies is that they have to buy one entire coin. But this isn’t true. The beautiful thing about cryptocurrencies is that you can buy them in fractions (because they are purely digital). You don’t need a lot of money to get started with crypto.

In a traditional stock market, you can only buy an entire share. For example, you can buy 1 share of Amazon, but not half a share of Amazon if you wish. This prevents some people from investing in Amazon because they can’t pay $3,000+ USD for 1 Amazon share (price as of Nov 2020). 

Some people are turned away from crypto and bitcoin (BTC), specifically, because they look at the price of 1 bitcoin ($20,000 CAD as of Nov 2020) and think “I can’t afford that!” But that isn’t true, because you can buy a fraction of bitcoin.

You don’t have to buy a full bitcoin. You can buy half of a bitcoin (0.5 BTC), 1/10th of a bitcoin (0.1 BTC), even one hundred millionth of a bitcoin (0.00000001 BTC) – the smallest unit of bitcoin is called a satoshi.

This divisibility allows for micro-transactions and for people to start out small, like investing $10. That’s because you can buy fractions of cryptocurrencies. Most exchanges and platforms will let you specify the amount you wish to spend (in Canadian Dollars for example) and will sell you the equivalent amount in crypto.

Get started with Crypto with as little as $10.

Dollar-Cost Averaging

A popular strategy that beginners take is called “dollar-cost averaging” which is the exercise of putting in a fixed amount of money over regular intervals (for example $50 every month). What this does is mitigate some of the risks (and reduces stress/anxiety) of investing in crypto. We’ll touch base on some of this more in another lesson. Remember, you don’t need thousands of dollars to get started with crypto.