People are often afraid to trade cryptocurrencies (or any other asset class in that case) because of the general opinion that states that trading requires a lot of money. But how much money do you actually need to start trading cryptocurrencies?

Trading vs. making a living

First off, we need to make a distinction between trading where we would turn a certain amount of money into more money, and making a living from trading. Not every starting sum of money will allow you to make a living from trading. However, this does not mean that you will not get there! People do not have to make a living off of trading in order to trade. Trading can be a perfect addition to their budget, or simply a hobby where their good trading decisions will make their portfolio will grow into infinity.

Example: Let’s start trading with $100: By using PrimeXBT features such as 100x leverage, we can trade with $10,000! Each 1% move our way will net us $100, which will double your portfolio. A couple of good trades, and we are making serious gains! Yes, you heard me right; trading with $100 is possible.

Trading cryptocurrencies with a small budget

While trading stocks, options or futures with a small budget can be a problem with all the regulation and the broker fees, cryptocurrency trading is quite easy to get into. Unlike exchanges for other assets (stocks, bonds, etc.) cryptocurrency exchanges tend to not have fixed fees, only percentage fees. For small transactions, these are typically in the neighborhood of 0.25% (0.5% round trip). Practically speaking, trading with small amounts is completely possible.

The fixed fees you will run into are more likely to be transfer fees to or off of an exchange. The fees will depend on the cryptocurrency you are deposition or withdrawing. A trader would need enough money to pay the deposit fees, withdraw fees and a bit extra to trade. With Bitcoin averaging a trading fee of $0.3 per transaction, a trader would effectively need $0.3 times two (for depositing and withdrawing), and the rest would be used for trading. This, along with 100x leverage, makes trading with even $100 possible!

Trading barriers are history

Cryptocurrency trading has brought trading so much closer to the end-customers than any other asset class before. With practically non-existent trading budget requirements, low transaction fees that cryptocurrencies now have, and close to no regulation, people from all over the world can trade with minimum amounts of money. Some exchanges (such as PrimeXBT) have even refused to use the KYC procedure, which means that traders can operate without tying their identities to their wallets.

On top of that, the leverage available at some exchanges is just enough for people to get going with as little as $100. Trading with smaller amounts is even suggested and encouraged if you are a beginner investor, just so you can learn detachment from money invested as well as so any potential mistakes do not affect everyday living.

Conclusion

Unlike popular belief, cryptocurrency trading can be started with as little as $100! This is mostly made possible by trading platforms such as PrimeXBT which offer margin trading of up to 100x. However, it is advisable to leave some “wiggle room”, and use a bit higher budget, simply so the first potential loss does not wipe the whole account to zero. Get into trading fast and hassle-free by checking out the PrimeXBT platform where you will have all your trading needs met.