- Some Questions You Should Ask Yourself Before Investing in BTC
- What Is Bitcoin?
- What Makes Bitcoin Valuable?
- Is It Smart to Invest in BTC Right Now?
- Is $100 Enough to Invest in Bitcoin?
- Can Investing $100 in Bitcoin Make You Wealthy?
- Can You Lose Money on Bitcoin?
- How Can a Beginner Invest in Bitcoin?
- Should You Buy Bitcoin Today?
- So, What Is Going to Happen If I Invest $100 in Bitcoin Today?
- Final Thoughts
The presence of FOMO is pretty much the only predictable characteristic of the incredibly volatile crypto market. Every time a coin or a token moons, the community gets divided into two groups: those who managed to profit from the price spike and those who wish they did.
FOMO drives many people to make rash decisions, such as investing in a shitcoin that can crash right after they purchase it. However, Bitcoin is not as risky as your average run-of-the-mill coins and tokens — it is a lot more stable and has companies and institutional investors backing it up. Additionally, it leaves a lot of people wondering — what could’ve happened if I added Bitcoin to my investment portfolio yesterday, last month, or three years ago?
So, what might happen if you invest $100 in Bitcoin today? Well, you might luck out and make a 100% profit in just a few days, or you may sell your coins at the wrong time and lose your $100. The size of your profit (or loss) will depend not only on the unpredictable crypto market and BTC price but also on your capabilities as an investor.
Some Questions You Should Ask Yourself Before Investing in BTC
While $100 may not seem like a lot, there are still a few things you should consider before investing in Bitcoin.
First of all, make sure you understand what Bitcoin is and what determines its value. This is essential for being able to anticipate its price movements. Don’t invest in BTC just because it’s the new cool thing to do — you stand to lose a lot of money that way.
To understand whether you’re just satisfying your FOMO or are genuinely interested in buying BTC, answer the following questions:
- Why didn’t I buy it earlier when Bitcoin was cheaper?
- Why am I buying it — to hodl or to make a quick buck?
- If it’s the latter, then why do I think I will be able to sell it later at a higher price?
- Am I OK with the risk? Can I afford to lose all the money that I’m going to invest in Bitcoin?
- Am I fully prepared to invest in BTC? Have I found a reliable crypto exchange and Bitcoin wallet?
Your answers to these questions should help you to understand whether you should invest in Bitcoin or not.
Additionally, we would advise against investing in Bitcoin or crypto in general if you are prone to falling for gambling traps. The crypto market is highly speculative, and its high-risk, high-reward nature can easily suck in people who are vulnerable to a gambling addiction, causing them to lose all of their Bitcoin investments in just a few hours. Please remember to be careful.
What Is Bitcoin?
Let’s be honest — as the most popular cryptocurrency and a technological phenomenon, Bitcoin probably doesn’t need an introduction at this point.
“Bitcoin” is a word that most people have heard at least once. It is a decentralized digital currency that was created back in January 2009 by an individual (or a group of individuals) that goes by the name of “Satoshi Nakamoto.”
Read more: How Does Robinhood Work For Beginners?
Bitcoin promises its users a wide range of different benefits, such as anonymity, low transaction fees, genuine cross-border payments that are not reliant on politics, and so on. It is a lot easier to top up your cryptocurrency wallet than deposit funds on your bank account. Bitcoin revolutionized the financial world and spearheaded the creation and development of the crypto industry and the crypto market.
As more organizations start to accept Bitcoin payments officially and average users learn more about it, there is a chance BTC will become a mainstream currency. The more Bitcoin believers are there, the higher the chances are that Bitcoin’s price stabilizes.
What Makes Bitcoin Valuable?
Unlike fiat currencies, Bitcoin is not given value by governments, and it is not widely used in retail (at least, not yet). However, it does have its use cases, and its foundation, blockchain technology, is currently revolutionizing a wide range of various industries.
Like any other currency, Bitcoin can be used as a medium of exchange and a store of value, but currently, these are not its primary use cases. Bitcoin’s value is mostly derived from what people are willing to pay for it and is driven by its scarce supply and increasing demand.
As a result, it can be quite hard to predict its price, and Bitcoin ends up depending a lot on the general attitude of the market. As we have seen before, many Bitcoin holders are prone to panic and have “weak hands,” meaning they tend to sell off their coins when the BTC price starts to decline, driving the value of the asset lower.
Is It Smart to Invest in BTC Right Now?
No matter whether you’re investing in the stock market, crypto, or even fiat currency, if you’re planning to do it in the long term, you will be generally advised to keep buying it bit by bit regardless of market conditions.
However, even if it’s the most optimal strategy, not everyone wants to keep buying Bitcoin for 5 years. A lot of people prefer making big one-time purchases and/or are worried that they may enter the market at the wrong time.
Although the crypto market can change quite rapidly, it does have phases, and some are naturally better for buying Bitcoin and other digital currencies than others. As always, the golden rule is to buy low and sell high.
That’s where some problems arise: how low is low enough? After all, as we can see from the chart below, Bitcoin has been in decline since November 2021. Naturally, many crypto investors currently feel hesitant to buy BTC or, to be honest, any other crypto assets. In a market like this, many choose to go for alternative Bitcoin investing options, such as shorting or margin trading, which let you earn higher profits (and losses) even from minor price movements.
However, not everyone will be up for trading Bitcoin, especially using such relatively risky strategies. Bitcoin mining also isn’t really a valid option: unless you’re going to join a mining pool, it is hardly worth it.
At the end of the day, you should invest in Bitcoin today if you believe its market price will rise tomorrow, next week, next month… It’s important to remember that trying to predict and outsmart the market will always be a gamble.
One way to catch a good buying opportunity is checking out signals given by platforms like TradingView. If it currently shows “buy”, then BTC price still has room to grow, and it may be time to go to one of the many available cryptocurrency exchanges and get some Bitcoin. If technical analysis from TradingView is currently giving Bitcoin a “sell” signal, its price will likely decline. That said, we recommend you to DYOR before making any Bitcoin transactions.
Is $100 Enough to Invest in Bitcoin?
Whether $100 is enough or not depends on your end goal. If you want to reap enormous gains, then $100 might not be enough. But if your goal is simply to get some profit or to jump onto the Bitcoin train, then it is more than sufficient.
Can Investing $100 in Bitcoin Make You Wealthy?
Well, it depends on how much Bitcoin will rise in the future and when you’re going to sell it.
For example, if you had bought $100 worth of BTC when the price of a single Bitcoin was $40K and later sold it when it hit $60K, you would’ve made a $50 profit. However, if you had instead bought $100 worth of BTC back when it was $1,000, you could’ve made $5,900.
Usually, when people invest low amounts, such as $100, they just reinvest their profit into their asset of choice instead of cashing out. Bitcoin is no longer at that stage where you can make millions of dollars by investing as little as $10 in it — if that’s what you’re after, you will be better off betting on the success of random shitcoins.
If you invested $100 in Bitcoin last week, when it was around $42K, it would’ve to go up to roughly $417 million for you to make one million dollars off the sale.
However, there’s another way to become wealthy by investing as little as $100 in Bitcoin: doing it on a regular basis, just like how you’d top up your savings account.
Can You Lose Money on Bitcoin?
There are many ways in which you can lose money by trading or investing in Bitcoin. Firstly, you may sell it at an inopportune moment and lose your initial investment. Secondly, your private keys may be stolen, or you might lose access to your crypto wallet. Thirdly, you may run into a scam… And the list goes on.
We give a few general tips on how to not lose your money while exchanging crypto in our article on refunds.
How Can a Beginner Invest in Bitcoin?
It’s as easy to get Bitcoin as it is to buy anything else online! There are tons of great crypto exchanges that offer user-friendly and hassle-free ways to purchase and sell Bitcoin and other digital currencies. Make sure to choose a cryptocurrency exchange that will keep your personal data safe (or doesn’t ask for it at all) and has a favorable exchange rate.
You can check out our guide on how to buy Bitcoin here.
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Should You Buy Bitcoin Today?
Ultimately, it’s up to you whether buying Bitcoin right at this moment is worth it or not. If it’s a one-time investment and you just want to try crypto out, we would recommend going with a lower amount since you can’t profit much from $100 anyway.
However, if that $100 fits in well with your general and Bitcoin investment strategy, or if you want to hodl that BTC for years to come, then it might be worth it.
If you want to make huge immediate profits, then trading might be a better fit for you. You can trade Bitcoin or go for one of the smaller cryptocurrencies that tend to have more drastic price movements. We would advise against mining Bitcoin — unless you already have all the necessary equipment, it is unlikely to be profitable.
If you’re looking for more digital assets to invest in, check out our overview of the cryptocurrencies that we think might boom in 2022.
So, What Is Going to Happen If I Invest $100 in Bitcoin Today?
While the values of crypto assets are notoriously hard to predict, at this point, most mainstream investors and Bitcoin evangelists believe it will always eventually bounce back and conquer new highs.
If Bitcoin’s price skyrockets this year, then you will be able to multiply your investment tenfold. A hundred dollars is not a large sum, and as long as you invest $100 in Bitcoin and not a dollar more (or, at least, not a much more significant amount), then you won’t have to worry too much about losing your money. Of course, if $100 is a large sum of money for you and you cannot afford to gamble it away, you probably shouldn’t make such a speculative investment.
When contemplating investing in any asset, it is always a good idea to consider how it will fit into your existing portfolio. And if you don’t have one yet, consider what other assets — fiat currencies, precious metals, virtual currencies, and so on — you will have to buy up to mitigate the risk and achieve your profit goals. An easy way to make a foolproof portfolio is to invest in a high-risk, high-reward asset alongside gold or other precious metals.
Ultimately, whether you should join the ranks of Bitcoin investors right now depends on what you think about this coin and crypto in general and its future potential. Please note that the contents of this article should not be seen as financial advice. Good luck on your crypto journey!
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.