Where to invest a thousand dollars. The main options with cryptocurrency

There are three main ways to earn money on cryptocurrency: mining, trading and investing. Each of them allows you to start earning income even from a starting amount of $1000

You can start earning on cryptocurrencies with almost any amount. As a rule, all experts recommend not to risk money that you are not ready to lose, but advise to start with about a thousand dollars. With the right approach, such capital is already able to bring tangible income. In the field of digital money, there are three main ways to make a profit: mining, trading and investing.

Mining

One of the most expensive ways to earn money on cryptocurrencies is mining. The cost of modern ASIC miners for bitcoin mining exceeds 100 thousand rubles per piece. Organizing a profitable farm "at home" worth a thousand dollars is an unrealistic goal, warned the co-founder of LazM Roman Nekrasov. He recommended looking at mining hotels where equipment can be placed, or processing centers, where both services and equipment and hosting are provided.

You will have to share the profits from mining with such a center, but it will deprive a lot of problems with the organization and maintenance of the farm. Now the highest profit is offered by mining not bitcoin, and Ethereum Classic and Ethereum, but the latter will soon cease to be relevant as a result of the transition of the network from the proof-of-Work algorithm to Proof-of-Stake. That is, you will have to reconfigure the equipment to mine another cryptocurrency.

"Is the user ready to invest in such a small farm? It is easier to delegate this task to professionals. They will help you use computing equipment at full capacity with a variety of solutions," Nekrasov recommended.

Michael Jerlis, CEO and founder of EMCD Tech, added that the minimum initial investment in mining equipment is now about $2500-4500. This amount includes:

New GPU or ASIC-based equipment
Accommodation on specially equipped venues, not artisanal format;
full payment of electricity and taxes, according to the law.
If the incoming market has access to preferential electricity tariffs, the entry threshold is reduced due to the possibility of installing used equipment. Gerlis did not recommend considering cloud mining, computing power rental and so on, as it is not always clear what is behind them.

"Mining is a business, and, as in any other business, a person who starts the way as an investor or entrepreneur, should competently calculate all the risks and have a clear plan for return on investment," the expert stressed.

Trading

The effective application of $1000 in the cryptocurrency market largely depends on the trader's raw data, such as experience, the time he is willing to give to the market, his attitude to risk. The first thing to understand is that the cryptocurrency market is quite young and there may be significant investment risks. Therefore, if there is no willingness to lose $1000 or at least $500, it may be better to invest this amount in other traditional investment assets, advised exMO CEO Sergey Yudanov.

Although $1000 in the cryptocurrency market can bring potentially more profit, both in the short and long term, than in the traditional market. With enough experience in trading $1000 will be enough to "feel" the cryptocurrency market and assess its advantages and disadvantages, the expert assured.

He recommended paying attention to liquid cryptocurrencies, demonstrating sufficient volatility for short-term trading. Experienced traders in this case will suit margin trading, trading futures and options, which are also already present in the cryptocurrency market.

With insufficient experience in trading, this thousand dollars should be considered as an investment that can be "forgotten" for the next few years. It will be a kind of test investment portfolio, which can be formed as follows: 60-70% evenly invest in the top 5-10 cryptocurrencies by capitalization as the most reliable assets, the rest of the "risky" part of the portfolio to invest in assets that are currently at the peak of their "high", suggested Yudanov.

"Every year such assets became: ICO, IEO, and today - DeFI. Investments in these assets may and will make the main loss of your portfolio, which will be compensated by investments in top coins, but if you are lucky with the choice, you will overtake the classic investment portfolio at a distance of several years," the expert explained.

According to him, a portfolio of a thousand dollars should be considered as a test. As confidence grows, you can invest additional funds with the same proportion.

Investment

It is best to invest $1000 in the purchase of proven cryptocurrencies - bitcoin or ether, said Klopenko Group EXECUTIVE director Dmitry Ivanov. Bitcoin in 2020 has become a real protective asset, in which not only private investors, but also large companies and funds are invested.

According to the portal Bitcoin Treasuries,public companies own bitcoins for hundreds of millions of dollars. The largest btC holder among them is MicroStrategy, which has invested $425 million in the first cryptocurrency since the end of the summer of 2020.

Also in early October, THE BTC was invested in the payment company of Twitter creator Jack Dorsey Square. $50 million invested in the first cryptocurrency about three weeks ago has already turned into $60 million.

"By the end of this year, the coin may approach the mark of $14-15 thousand, and in the future of 2021, bitcoin is able to cross the threshold of $25 thousand. And there is no doubt that the crypto market is growing and will continue to grow in the conditions of the global crisis," Ivanov concluded.

Recall, on October 21, the bitcoin exchange rate updated the annual maximum above $12,800. The growth in the value of the asset was strengthened after the announcement of paypal payment system to add the function of buying and selling cryptocurrencies. PayPal will not be charged for storing digital money, and until December 31, 2020, the system does not intend to take a commission in transactions with cryptocurrencies. In addition, in 2021, the application will be able to pay digital assets in 26 million outlets.

Since the beginning of the year, bitcoin has risen by 75%. In March, its price fell to a local low of $3800. Investing in cryptocurrency at this price for 7 months would bring an income of 238%.