I’m planning on investing a small amount ($500) in Bitcoin in the new year. Do you have any tips or advice for me?
Learn about it. There are very wise and well spoken people out there who can provide free information.
Use a reputable exchange (coinbase, Ftx, etc)
Think of it as your money marker account.
.... invest more!
Depends on if you want to be an old school anonymous crypto user, or don’t mind being subject to IRS Cap Gains taxes...if going “anon” then get a new Bitcoin wallet, buy with cash or Zelle from individuals or decentralized exchanges like “Bisq” that have no “KYC” (”Know Your Customer”) requirements and do not re-use any Bitcoin addresses (you can create as many as you need in your BTC wallet). If you just want to get some crypto and don’t mind the government/IRS involvement then exchanges like Coinbase that collect your personal information are fine. If Coinbase, etc. it is better to keep your crypto keys in your possession after buying rather than leave them on Coinbase...exchanges can be hacked. Have fun!
https://www.youtube.com/playlist?list=PLU52pNodXIGdM6XDgHVG7DsPytlsrR_6b
Crash course in crypto playlist