If you are wondering what to invest 1k in then maybe you should consider crypto. In this article, some useful tips how to invest and what you should buy in this fast rising industry.
As the cryptocurrency market is in a new bull market, there is a large number of investors that want to buy 1k of crypto. Bitcoin (BTC) and other cryptocurrencies have been growing over the last months. BTC, for example, has massively surpassed its previous all-time high in 2017.
During the first part of 2020 (6 weeks) Bitcoin, Ethereum (ETH) and other cryptocurrencies were in a bull run. BTC surged from $7,400 to $10,000 in just a few weeks. However, the Coronavirus crisis affected users that invested in digital assets. BTC fell to $3,800 in February 2020.
Nevertheless, we are talking about one of the most resilient markets in the world. Bitcoin started a massive bull run that allowed the digital asset to surpass $10,000 and move towards $29,000 by the year-end. Everyone wanted to buy 1k of crypto. Many of these investors are now several thousands of dollars up.
In the next sections, you will get all the information you need about what is the best way to invest 1k in crypto.
Can I buy $1000 dollars of Bitcoin?
Yes, you can definitely invest $1000 in Bitcoin. This is something that can be done in just a few steps. Some newcomers and investors are wondering whether it is possible or not to buy smaller amounts of BTC. The answer is clearly yes.
Users do not need to buy 1 whole BTC. They can do so by parts. Each Bitcoin is divided into 100,000,000 smaller units called satoshis. The price of each satoshi fluctuates according to the price of BTC. Users that invest $1000 in Bitcoin, if the price is at $10,000 they will receive 0.10 BTC. This is equal to 10,000,000 satoshis.
With the price of Bitcoin above $30,000, it could become certainly difficult to get access to 1 whole Bitcoin. This is why buying smaller amounts of BTC is also a possibility. You can hold BTC in a cryptocurrency exchange or send it to a hardware or non-custodial wallet. This is certainly the best option if you invest 1k in crypto.
You will not only be able to buy Bitcoin but you can also have access to other cryptocurrencies. Investors generally buy 1k of crypto to diversify their portfolios. Furthermore, it is also possible to invest lower amounts in order to be able to understand how the market works.
How Much Would I Have if I Invested $1000 in Bitcoin 5 years ago?
In January 2016, Bitcoin was traded close to $400. That means that if you invested $1,000 in Bitcoin 5 years ago you would have 2.5 BTC. These 2.5 BTC would now be worth $80,000 at $32,000 per Bitcoin.
That means that your investment grew by 7,900% in just five years. Several investors purchased more than just $1,000 five years ago. This is why there are thousands of investors enjoying the benefits of entering the market in the early days of BTC.
In 2017, Bitcoin started the year close to $950 but its price moved to $20,000 at the end of that year. Furthermore, in December 2018, the price of BTC fell to $3,200 per coin for a short period of time.
Bitcoin price($) since 2016
As mentioned before, in March 2020, Bitcoin reached its lowest point in the last years. With BTC now above $30,000 entering at lower prices seems to be something difficult to do. If you invest $1000 in Bitcoin right now, we do not know what will happen in the future. However, you will be the holder of an asset that is scarce and has a limited supply of 21 million BTC.
So, what is the best way to invest 1k in cryptocurrency? In my opinion, the key to this is to have a very balanced portfolio of different cryptos together with Bitcoin in it. Additionally, I would suggest having at least 40% of $1000 being invested in BTC. The other 60% would go to different token projects being in the top 100 of Coinmarketcap website.
Steps To Buy $1000 in Crypto
To acquire cryptocurrency, most investors are using a cryptocurrency exchange to get the crypto they want. In addition to it, I would suggest choosing Binance, primarily because it’s the biggest in the world with the most coins(100+) listed to buy.
Below I’ll explain the quickest road to cryptocurrency which is buying Bitcoin with a credit card first. Remember that later on, you can use the $1000 in Bitcoin to buy the other coins to get a more balanced crypto portfolio.
- Create a free account at Binance
- In the menu choose ‘buy Crypto(USD)’
- Select ‘Credit/Debit Card’ option
- Give the amount($1000) you want to invest
- Select BTC as coin to buy
- The BTC will be transferred to your wallet in minutes
Again, at this point you own $1000 in BTC. To get a more balanced portfolio you can use the ‘Convert’ option on Binance to buy other coins with the Bitcoin you own.
What are the Most Promising Cryptocurrencies to Buy?
There are different promising cryptocurrencies you can buy. Indeed, if you want to buy 1k of crypto, you can think of some of the following digital assets. Although these are our favorites, this shouldn’t be considered investment advice. In fact, this post is a little bit biased as we have positions in some of them so take this advice with a little grain of salt 😁
Ethereum is currently the second-largest blockchain network in the world. This digital currency known as ETH is the first one to offer developers the possibility to run smart contracts. These smart contracts can be used for a wide range of things. This blockchain network and digital asset were co-created by Vitalik Buterin.
The virtual currency reached its all-time high in January 2018 when it surpassed $1,400 for a short period of time. At the end of the year, ETH was traded below $100. This allowed a large number of investors to acquire ETH at low prices and get in the bull market that started after this price drop.
Many investors believe that Ethereum could continue growing in the future, reach its previous all-time high and move towards $2,000 per coin. Although this is a possibility, it is not a certainty. We are not sure what can happen with ETH or with any other virtual currency. You should always do your own research.
Litecoin (LTC) is another popular cryptocurrency in the market. Indeed, it is one of the oldest. Created in 2011 by Charlie Lee, a former Google Engineer, LTC became a close ally to Bitcoin. The Litecoin community claims to be the silver to Bitcoin’s gold.
Moreover, a wide range of projects has been flourishing on Litecoin. This is the largest cryptocurrency in the world with a privacy implementation being developed. Litecoin developers are now working in order to bring privacy features to the LTC network. This would allow users to send and receive LTC in a private way.
In addition to it, Litecoin is also used as a testnet for Bitcoin. Some implementations have been released first on Litecoin and later on Bitcoin. This is due to the fact that LTC is very similar to BTC in terms of code. Some of the implementations on LTC could later be developed on top of Bitcoin without complex compatibility issues.
Chainlink (LINK) is a fast-growing cryptocurrency that has captured the attention of investors since 2018. The virtual currency has been growing over the last years and it has helped blockchain networks gather valuable information to execute smart contracts.
This blockchain network is known for being an Oracle system that aims at bridging the gap between blockchain technology and smart contracts. With better information, developers are also able to create more advanced smart contracts. Thus, Chainlink is helping the entire blockchain and crypto industries to move forward.
You can invest 1k in crypto and take LINK into consideration to diversify your portfolio. Furthermore, the coin could certainly increase its presence among the top 10 in the coming months.
Theta is another crypto network that wants to provide services to video streaming users. The coin was launched in 2019 and it fastly became one of the largest digital assets in the world. Through this network, users can easily share bandwidth with each other on a peer-to-peer network.
The final goal is to make the video industry totally decentralized. However, they focus on the video streaming market. In this way, it will be possible to make it more efficient, cost-effective, and accessible to everyone.
VeChain is one of the largest blockchain networks in the world. The project has been running since 2016 and it has attracted a large number of users. This blockchain network uses the Internet of Things (IoT) to create advanced solutions for the supply chain management.
In addition to it, the platform works with VET and VTHO tokens. These are used on the VeChainThor blockchain. In recent years, VeChain has signed partnerships with a large number of companies. The platform has been founded by a group of experts working on large finance and risk management companies.
There are many other cryptocurrencies in the market that could be great investments for the future. You can invest $1000 in Bitcoin and diversify your portfolio. You can buy 1K of crypto and other coins. It is always important to do your own research and be able to understand which is the value proposition of each cryptocurrency you assess.
How Can I Buy Cryptocurrency or Bitcoin?
There are many different ways to buy cryptocurrency or Bitcoin. Users can do so through crypto trading platforms (like Binance explained earlier in this article). These cryptocurrency exchanges are the easiest way to invest 1K in crypto.
At the moment there are many different cryptocurrency exchanges around the world. Depending on the country where you are located, the platforms you will have available will be different. Furthermore, you can select the platform that will also fit your needs.
Once you selected the exchange you want to use, you need to create an account. This can take a few minutes considering you need to share your information. Once you activate your account, you can already start buying cryptocurrencies. Some platforms are requiring users to pass ID verification. This is going to be an important step if you want to be allowed to buy 1k of crypto.
Some exchanges are offering not only BTC for trading but also other digital assets. This can be a great way for you to start planning a diversified portfolio in the crypto market.
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You can also buy Bitcoin using P2P networks. Several exchanges are also offering this possibility. However, there are some platforms that focus only on P2P trading such as LocalBitcoins. You can buy and sell BTC in just seconds with people located in your region.
Although you might already know this possibility, you can also buy Bitcoin and other cryptocurrencies to people you know. You can simply meet with them, arrange a price for the coins you want to buy or sell and process the transfer.
Exchanges are also allowing you to invest 1K in crypto with credit or debit cards. Some other platforms will also have the possibility to deposit funds through a bank account. This would make it easier for you to invest $1000 in Bitcoin or other virtual currencies.
Can I Become a Millionaire With Cryptocurrency?
So should I invest 1k in Bitcoin or any other cryptocurrency and become a millionaire? In theory, anyone can still become a millionaire with cryptocurrencies. However, just by investing 1k would requiere you to take lot's of risk and the chances are very low that you would become a millionaire by just investing in BTC alone.
For instance, how much would your investment of 1k in cryptocurrencies need to grow in order for your 1k investment to become $1m?
We have good and bad news. The good news is that there is an answer to this question. The bad news is that you would need a 99,900% growth in your investment to reach this value. That’s certainly difficult to get.
Although cryptocurrencies provide great investment opportunities, there are some limits to how much they can expand. In order to become a millionaire with an investment of just $1,000, BTC would have to move from $23,000 to 31.96 million per coin. This is almost impossible at current prices.
The least conservative price predictions for BTC put it at $1 million per coin. That means that you would have to invest at least $32,000 and wait until BTC would be worth $1 million. This would represent a price increase of 3,025%.
Smaller cap coins could offer better returns to investors. This is because they are smaller and could potentially attract a large number of investors. Nevertheless, it is also riskier to invest in smaller cap coins. Take into consideration that Initial Coin Offerings (ICOs) released thousands of tokens to the market. Most of them are now dead or without any kind of support from developers and creators.
Cryptocurrencies are volatile assets. They can also fall. This happened in 2018 when BTC moved from $18,000 to $3,200. Other coins such as ETH fell from $1,400 to $82. Despite that, if you enter in a bull market, your returns could definitely multiply or maybe even 10X your investment portfolio.
Is it too late to invest in Bitcoin or any other cryptocurrency? This is a very hard question every investor has to deal with when considering a position in these very volatile markets.
In this article, some tips were given on how to enter this market when you want to invest 1K in Bitcoin or any other cryptocurrency. By doing some decent research into the markets, choosing the right projects, and have good timing is the key to this.
All in all, if you are doing these things right and you have a strong stomach, then nothing can stop you from being profitable in the cryptocurrency markets!
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Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for leading cryptocurrency sites; with over 3,000 articles published.
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