Serious question. I have $500 I can afford to lose. (I understand I could lose it all if shit hits the fan. It's happened to me before on the stock market.)
Is there any chance with only $500 invested into a cryptocurrency that I could see a significant gain on my investment and cash it out into real money if it's selling sky high later on, like a stock?
I'm trying to read about crypto but I just can't wrap my head around it. But I have $500, lol.
Thanks.
I'm no expert, just starting out myself.
Let's say Bitcoin goes from 10K to 60K this year, that's 6x your investment. It's a nice chunk if you had 10K to plunk down obviously, and it's certainly more likely than some of the smaller alt coins.
But your biggest likelihood for a huge gain is also the most risky generally, which will be alt-coins that are selling for pennies or fractions of a penny. If they hit $1, or $10, etc. then that's a ridiculous boost.
Right now there are a LOT of uneducated buyers in the market falling for scams like Bitconnect (who I believe are now shutting down) and other coins that will only last so long before they crumble (although there's money to be made buying on the dips and selling on the highs)
And of course there's groups out there manipulating the pricing with their buys and sells as well, plenty of misinformation, etc.
So yes, it's possible you could put $500 into coins that are pennies or fractions of a penny and if they take off you have a nice return. But of course no guarantees.
My initial plan was to put 1K in and then do half on more stable long-term coins and the other half on the riskier but potentially higher return coins.
But now I'm going to put 8K more into the market but on Bitcoin which I expect will jump up quite a bit as the year goes on. So it's a more stable likely return than the other coins, guess I'm a bit of a nit.
