Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto

How Much Crypto Do You Need?

By Edwin TechKnow | Edwin TechKnow | 8 Feb 2021

There I was. I had my bank card out of my wallet sitting in front of me, in front of the keyboard of my computer. I was about to purchase $100 in Bitcoin at $0.05. This is where some people jump in and say "Yeah right. When were Bitcoin five cents?" Now I did not quite understand cryptocurrency at the time. Very few people did back then, but I had my credit card in my hand and I was known for taking unusual risks, but this time I thought about getting to that next paycheck and what it would mean to just "blow" a $100 on another scheme that would never pay off. I placed my credit card back in my wallet and did not think about it for several years. Since I did not actually go through the transaction I do not know what other fees or charges I would have received from Mt. Gox, or how many BTC I would have actually received. I also do not know if I would have stored on that exchange that went down with tons of other people's money or if I would have stored it on my hard drive or a USB drive. The point is I missed my shot. 

So just an estimation but I would have received close to 2000 BTC for that $100. For the sake of this article, I will just say 2000. Also assuming I kept it until now since in the early days there were not many exchanges or markets to sell it, the total value of that $100 purchase would now be worth $77 Million USD. I know it is a sad story. 

There are a lot of variables involved like circulating supply, popularity, and technology in picking the next big one to come along after BTC. I do believe because Bitcoin is slow and expensive to use... that faster and cheaper coins and tokens will someday have an edge over Bitcoin, not as a store of value, but for real-world use. Picking the right one out of thousands of tech is based on research and practicality. We all have to do our own research because everybody has an opinion about everything. There are people pushing DOGE coin as we speak when 50% of the circulating supply is owned by 20 wallets. That is not a safe bet. Sure, you might make some money but it is more than likely you are gonna lose it.

So the essence of this article is not to tell you which crypto's to invest in, but rather how to diversify into the ones you think have potential.

So here is my basic chart (It does not take into account circulating supply and can easily be customized based on your desired outcome.) 

Price of coin =$0.01 - $0.10 ($100 invested), $0.15 - $0.20 ($200 invested) $0.30 ($300 invested) You seeing a pattern here?

Obviously, this for those of us on a shoestring budget. Now, I know what your thinking..."What about the ones a bit higher in price, like $25 or $500 or over $1000?" The answer is, It's good they have momentum. That means people believe in the asset, but it also means although you may make some good money it is also highly unlikely your going to make $77,000,000 off of it unless you are somebody like Elon Musk. 2000 coins of LINK @ $25, for example, will cost $50,000, but I am not done. 

Because Bitcoin's circulating supply is roughly 18,000,000 coins, I round that up to 20,000,000 as a measurement against the circulating supply of any said asset. For example, if the current price is $0.05 but has a circulating supply of 1,000,000,000 that is x5 ($100 x 5 =$500) So the new amount I need to invest in that particular project will be $500, no more, no less. Like I said you can customize it to your thinking. Remember you will probably be paying taxes on it when you sell any of it, and only one of the ones you invest in may actually see its full potential. We cannot see the future, so that's why we diversify. Now I know there are other ways to multiply your amount and there are farms and defi...tons of new stuff out there that may make this process easier to accomplish without investing as much as I have stated. I will not go into particulars for this example.

Another way to look at this is...2000 coins per 20,000,000 circulating supply and watch out for the ones that the circulating supply is being held by companies. I like to see 75-100% out on the open market unless it is a brand new crypto asset.

If you have another way you are doing this, I would love to see your comment. This is just my way, and your way may be different and that's okay.            

How do you rate this article?


Edwin TechKnow
Edwin TechKnow

I am a developer of web-related technologies and author.

Edwin TechKnow
Edwin TechKnow

Let's talk about cryptocurrency! With that being said, I am not a financial advisor, and all of my posts are solely my own opinions. Before investing, you should do thorough research and not take my word for it.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.