The Lottery Ticket Rule
OK, imagine this: There’s a $800 Million Jackpot for Mega Millions happening tomorrow evening. How much money are you willing to put in lottery tickets within the next 24 hours for a chance to win this once-in-a-lifetime prize? Remember, if you do not buy any lottery tickets, you have zero chance of winning. But, if you put in at least one dollar, you will have a very slim chance. Regardless, you will have a chance, which is better than no chance at all.
Now, take that number and multiply by 52. This should be your initial investment in the cryptomarkets. So, if you are willing to put in $20 for a chance to win $800 million, then allot $1,040.00 as your initial investment in your baby crypto portfolio. Some money is better than no money in crypto. If you do not have $1,040.00 right now, then start saving $20/week and dollar-cost-average your way into your crypto portfolio. You do not have to risk your life savings, and your house to buy Bitcoin or any other cryptocurrencies. For those who do not know, you can actually buy fractional “shares” of any kind of cryptocurrency. For example, you can buy 0.00000001 of a Bitcoin if that’s all you can tolerate or afford. So, if you have a very low risk tolerance or if you are just plain broke, then you can buy as little Bitcoin as you want. No shame in having a small piece of the crypto pie in your investment portfolio.
Just remember to never get too greedy. Because when you start seeing those YUUGE gains, you will be tempted to put your life savings into cryptocurrencies. Don’t be dumb. Only invest (or speculate) with the money you are willing to lose. Good luck!