Should I invest in multiple cryptocurrencies?

Sure, it's definitely a good idea to split your investment into a couple of cryptos. However, please keep in mind that investing $100 (which is a relatively low amount) into big cryptocurrencies (ETH or BTC) probably won't give you the results you're expecting.

My personal advice would be investing into cheaper options, like Litecoin, Cardano, or Monero. Sure, these don't hold the same promise as well-established ones like BTC, but are a lot more volatile (both for better and worse). Splitting your $100 investment in 4-5 of these might possibly give you a crazy return up to 1,000% in the next 12 - 36 months. Check out the coinmarketcap.com list of all cryptos and give one of them a shot.

In general, investing in cryptocurrencies is certainly not a bad idea. Especially in this investment area, the risk - and the profit opportunities - are, after all, comparatively high. Thus, spreading the investment amount across different currencies can of course provide considerable security.

However, there is also the difficulty of always having your portfolio under control. As already mentioned, digital currencies are subject to considerable rapid and short-term fluctuations. Prices sometimes change every minute. For investors, it is therefore particularly important to recognize every change immediately and to react accordingly. However, if you have too many different cryptocurrencies in your portfolio, it is extremely difficult to keep a permanent overview.

If you want to include different currencies in your portfolio, then you should try to select mainly well-known and relatively stable currencies. In general, however, you should be aware that this can quickly become a real full-time job for you.

You should definitely split the amount you have dedidated to cryptocurrency investments into several cryptos, given the massive volatility associated with cryptocurrencies compared to other asset classes.

Given that you are starting with a tiny amount of money, you shoudl steer clear of the well-known cryptos simply because the massive gains are long gone. Buying a fraction of Bitcoin at its price of around $60,000 a coin will not result in massive gains over the years.

Therefore, you should split your investment between 3-5 promising crypto projects tarding at low prices and then wait for time to prove you wrong or right. Remember that you are investing in a risky market and that some crypto project will amount to nothing over the years; hence, you could lose your entire investment.

However, all you need is one or two good projects with 1000% gains to recoup your initial investment in all coins and post an impressive return.

Should you invest in multiple cryptocurrencies? It depends on the virtual tokens you choose.

For example, Litecoin is around $200 and Monero is trading for the same amount.

Therefore, you may need to select other cryptocurrencies that are either extremely volatile or trading for a few pennies.

This is where it would help to know how to invest in multiple cryptocurrencies.

That said, here are four cryptocurrencies you should consider investing with your $100:

Cardano (ADA): The Cardano blockchain is being established to construct smart contracts and manufacture decentralized applications and protocols.

Tether: This has become a controversial digital currency in recent months (do your research!). But it is still considered to be a popular widely used safe coin, so this can shield your portfolio from volatility

VeChain (VET): The VeChain protocol aims to produce an ecosystem that solves many of the problems facing supply chain management.

Chainlink (LINK): This is another cryptocurrency that attempts to facilitate the smart contract economy. It is a bit expensive, so you may need to invest a small portion into the digital currency and protocol.