Is Bitcoin a Good Investment Today?
Bitcoin is the most well-known and oldest of the modern crop of digital currencies. No government is backing this currency, so this distinguishes it from the US dollar and carries different risks that could make Bitcoin a good or bad investment, based on your unique investment aims.
If you’re new to crypto, you might wonder, “What if I invest $100 in bitcoin today?” or “Can I start by buying $100 in Bitcoin for my investment portfolio?” The answer is yes. Bitcoin is not as risky as other coins and tokens; it is much more stable and has institutional investors backing it. But before you make your first crypto investment, you should know a few things about it. Here’s a closer look at what investing $100 in Bitcoin today looks like for new and skilled investors.
What is Bitcoin Worth?
The value of a bitcoin fluctuates frequently; much of its volatility is due to the debate over Bitcoin’s worth. A single bitcoin was just worth a few cents when it was first introduced in 2009, but at its peak, it was worth around $60,000. A single bitcoin is currently worth around $30,000 as of this writing.
The numbers show that Bitcoin investors stuck with the cryptocurrency through its highs and lows likely reaped enormous profits. You could have made millions of dollars by buying $100 of bitcoin when it was worth a few cents and holding it until it was worth over $50,000.
Bitcoin Current Price Chart
How much Bitcoin do I own if I invest $100 in Bitcoin Today?
At the time of writing, a $100 cryptocurrency investment could buy 0.0043 BTC. If Bitcoin returns to its all-time high of $68,789.63 in November 2021, that $100 investment will be increased.
Is It Smart to Invest in BTC in 2023?
Whether you plan to invest in the stock market, cryptocurrency, or fiat currency in the long run, it is usually advised to buy in small sums regardless of market conditions.
Use Dollar Cost Averaging (DCA) Strategy
The best way to do this is with Dollar Cost Averaging (DCA). Dollar-cost averaging is the act of investing a fixed amount of money every month, no matter what the price is. It’s an excellent way to form a disciplined investing habit, increase investment efficiency, and reduce stress and expenses.
Even if it is the best strategy, only some people want to keep buying Bitcoin for the next five years. Many people prefer to make large one-time purchases and are worried about entering the market at the wrong time.
Although the crypto market is volatile, it does have phases, and some are better than others for purchasing Bitcoin and other digital currencies. The golden rule, as always, is to buy low and sell high.
Problem with Investing in Bitcoin Right Now
The problem is figuring out how low is low enough. After all, Bitcoin has been declining since November 2021. Eventually, many crypto investors are currently hesitant to purchase BTC or other crypto assets.
In such a market, many people opt for alternative Bitcoin investing options such as shorting or margin trading, which allows them to earn higher profits (or losses) even on minor price movements. However, not everyone will be willing to trade Bitcoin, especially with such high-risk strategies.
Use TradingView for Alerts
Finally, if you believe Bitcoin’s market price will rise in the future, you should invest in it now. Checking out signals from platforms such as TradingView is one way to spot a good buying opportunity.
If it says “buy” right now, the BTC price could still go up, so it might be time to go to one of the many crypto exchanges and buy some Bitcoin. If TradingView’s technical analysis indicates a “sell” signal for Bitcoin, its price will most likely fall.
Read for 7 Best TradingView Indicators.
Where to Buy $100 in Bitcoin Today
Numerous centralized cryptocurrency exchanges offer Bitcoin for purchase. Before selecting an exchange, research and read other users’ reviews; transaction fees are essential when choosing an exchange for your Bitcoin investment. These fees may differ significantly from one exchange to another based on transaction size or activity level.
Best Crypto Exchanges to Buy $100 in Bitcoin Today
1. eToro
eToro is a reliable crypto exchange where you can trade famous cryptos, explore high-performing portfolios, and connect with traders. Several popular digital currencies are currently supported by eToro for purchase and sale.
2. Uphold
Uphold is currently the best cryptocurrency exchange available. It has a vast range of assets that can be traded, such as over 200 currencies. It also lets you trade in precious metals on the same platform. It also has a fantastic staking feature that allows you to stake various cryptocurrencies at some of the highest rates on the market.
3. Gemini
Gemini is yet another major cryptocurrency exchange based in the United States. The Winklevoss brothers of Facebook fame founded this exchange. Gemini is a reputable cryptocurrency exchange with numerous bank-like features. It includes the ability to earn interest on most cryptocurrencies held in your account.
4. Binance.US
Binance.US is part of Binance for traders in the United States. Binance is perhaps the largest cryptocurrency exchange in the world. However, due to US securities regulations, the experience for users in the US is different from that of the rest of the world. Even with these restrictions, Binance.US could be a good place for your crypto because it has competitive prices and access to a large number of currencies.
5. Kraken
Those with more experience trading cryptocurrencies may benefit more from using Kraken. Kraken has a large currency selection, low, competitive fees, and an excellent earn feature where you can earn generous rewards for staking or holding cryptocurrencies.
6. Wunderbit
Wunderbit is another excellent Bitcoin purchasing option. The platform allows you to buy and sell Bitcoin, Ethereum, and other cryptocurrencies at the best market rates. Furthermore, users can fund their accounts with cryptocurrency or purchase cryptocurrencies with a credit or debit card. Another cool feature that distinguishes Wunderbit is its ability to detect ‘dirty’ Bitcoin. Bitcoin has been involved in hacks, money laundering, or other illegal activity and may be seized by government officials.
What to Ask Yourself Before Investing $100 in BTC
While $100 may not seem like much, there are still a few things to consider before investing in Bitcoin. First, understand Bitcoin and its value. Being able to predict its price movements requires knowing this. You could lose a lot of money if you invest in BTC just because it’s trendy. Answer these questions to determine if you’re buying BTC out of FOMO or because you really want it:
- Why didn’t I buy it when Bitcoin was cheaper?
- Why do I want to buy it—to hodl it or to make some quick money?
- If it’s the latter, what makes me think I’ll be able to sell it at a higher price later?
- Is the risk acceptable to me? Can I afford to lose all of my money if I invest in Bitcoin?
- Is it safe for me to invest in Bitcoin?
- Have I discovered a trustworthy cryptocurrency exchange and Bitcoin wallet?
These questions will help you decide whether or not you should invest in Bitcoin. If you have a history of losing money in gambling schemes, you should also avoid Bitcoin. The crypto market’s high-risk, high-reward nature can lure gambling addicts and cause them to lose all their Bitcoin investments in a few hours. Please keep caution in mind.
Bitcoin as a Long-Term Investment
Bitcoin is the most renowned crypto and could be used as a digital form of money, but many investors currently see it as “digital gold.”
Bitcoin investors believe the cryptocurrency will increase in value over time because its supply is fixed. Unlike most currencies, which can be printed at will by central bankers, the total number of Bitcoins that can ever be produced is less than 21 million. Many investors believe Bitcoin will rise in value as fiat currencies fall in value.
Cathie Wood’s Price Prediction
Cathie Wood, CEO of Ark Invest, has long been a vocal supporter of Bitcoin. Wood reiterated Ark Funds’ large price target for the leading crypto by 2030. If Bitcoin reaches Wood’s $1 million price target in 2030, the $100 investment would be worth $6,070. This represents a 5,970% increase from now to 2030.
Wood has expanded the Ark Invest portfolio with large purchases of cryptocurrency-related companies. The Grayscale Bitcoin Trust and Coinbase Global are the most significant crypto-related holdings in the Ark Invest ETFs.
Coinbase is the 7th largest holding in the Ark Next Generation ETF, the 14th largest holding in the Ark Innovation ETF, and the third largest holding in the Ark Fintech Innovation ETF, with 5.3%, 3.5%, and 6.2% of assets, respectively.
Why Investing in Bitcoin is a Good Idea?
Bitcoin’s outstanding performance as a currency and investment has attracted both traditional and institutional investors. They’re all wondering if Bitcoin is a good investment. To be fair, it has several advantages over traditional investments.
- Liquidity – Bitcoin is one of the most liquid investments. With low fees, you can instantly exchange Bitcoin for cash or assets. If you’re looking for quick cash, Bitcoin may be a great investment option due to its high level of liquidity.
- New opportunities – Since Bitcoin is relatively new, new coins are regularly entering the mainstream. It brings unpredictable price and volatility swings, which may offer opportunities for significant gains.
- Lower inflation risk – Bitcoin is almost immune to hyperinflation, unlike other world currencies, which governments control. Although it continues to experience inflation, the rate is now predictable and is cut in half every four years. The blockchain system is limitless, so you shouldn’t worry about your cryptocurrencies losing value.
- Institutional Adoption – People are gradually accepting the innovation and implementing it for their own operational needs. Indeed, many investment firms and investments now have a crypto-focused portfolio.
- Minimalistic trading – Stock trading can be time-consuming and restricted to specific market hours. However, Bitcoin trading is simple: buy or sell Bitcoin from exchanges whenever you want. Bitcoin transactions are also instant.
- Bitcoin has store value – Bitcoin has a maximum supply of 21 million coins. Given its limited supply, Bitcoin will store value after this. Consider gold, which is scarce. Investors buy gold to protect fiat money from inflation. Many experts call Bitcoin “digital gold” because it functions like gold, with limited supply and store value.
- Bitcoin is the benchmark for cryptocurrencies – Bitcoin is actually stable in comparison to other cryptocurrencies. Because it is also the most widely used crypto, experts frequently use it as a benchmark against which other coins are measured. It adds a lot of trust and support to its name.
Disadvantages of Bitcoin Investments
You should be aware of the risks associated with cryptocurrency investing. The following are a few aspects that could make Bitcoin a risky investment.
- Volatility – The price of Bitcoin is constantly fluctuating. While holding for years at a time is an excellent strategy for you, it may only be for some investors.
- The threat of hacking – Bitcoin’s blockchain has never been hacked, but private keys can still be stolen. Use a hardware wallet, such as the Ledger Nano X, to store your digital assets off the internet on an external device for maximum security.
Tips to Invest $100 in Bitcoin
Here are six tips for investing in cryptocurrencies:
1. Have a Strategy for Crypto Trading
Real cryptocurrency proposals can be hard to distinguish from scams, and there are many “sharks” in the cryptocurrency market ready to take your money. Don’t get caught up in the excitement when there’s a lot of information about a cryptocurrency at once.
Examine the project or platform critically. How many people use it? What issue does it address? Avoid coins that promise the world but deliver nothing tangible.
2. Manage Risk
Some people who provide cryptocurrency trading advice may have different interests than yours. Don’t invite trouble for yourself by repeating the mistakes of others.
Set limits on your investment in a given digital currency and resist the urge to trade with any more money than you can afford to lose. Crypto trading is high-risk, with more traders losing money than winning.
3. Diversify your Crypto Portfolio
It is not advisable to put too much money into a single cryptocurrency. Keep your options open; don’t put all your eggs in one basket. Spread your money among different digital currencies, just as you would with stocks and shares.
It means you won’t be over-exposed if one of them loses value, which is especially important given how volatile the crypto market prices are. There are a lot of options, so do your research.
4. Automate your Crypto Purchases
Like with regular stocks and shares, automating your crypto purchases can enable you to take advantage of dollar-cost averaging. You can set up recurring purchases on most crypto exchanges, including Coinbase and Gemini.
It relieves the pressure of trying to time the market by either buying or selling a currency at what you believe to be the best possible price. Even market professionals need help getting it right.
5. Use Crypto Trading Bots
Trading bots can be helpful in some situations, but they are not advised for new investors looking for cryptocurrency advice. Most of the time, they are just scams in disguise.
6. Invest for Long Term
Cryptocurrencies are here to stay. Leaving your money in crypto for months or years may yield the best results. However, this way, you can get subjected to taxes, so you know how to calculate your crypto taxes.
Can You Lose Money on Bitcoin?
There are numerous ways to lose money when trading or investing in Bitcoin. For beginners, you might sell it at an unfortunate time and lose your initial investment. Second, your private keys could be stolen, or you could lose access to your cryptocurrency wallet. Third, you might come across a scam. You might also face;
Regulatory Concerns
Cryptocurrencies are generally opposed by governments worldwide. Countries such as China and Turkey have outlawed their use for everyday transactions. These events raise concerns about Bitcoin’s future acceptance.
Fear of Recession
Everyone is concerned about the possibility of a recession in the current global environment. Generally, when a recession hits, the relatively newer assets suffer the most significant price decline. Due to this, Bitcoin is currently a volatile short-term bet.
Divided Forecasts
Even though many analysts think that the price of Bitcoin has hit bottom, others still think there is more downside. It leaves it up to the investor to decide who to trust and then make a decision based on valuable insights.
Other Cryptocurrencies to Invest in Besides Bitcoin
Indeed, Bitcoin is not the only cryptocurrency that has been in the news over the past few years. The more than 10,000 cryptocurrencies currently available on the market include Ethereum, Dogecoin, Shiba Inu, Stellar Lumens, Avalanche, Cardano, and Solana.
However, it’s worth noting that Bitcoin and Ethereum are undoubtedly the most secure and stable cryptocurrency projects available today. Investing in currencies other than these core currencies entails even more risk and volatility. Check out websites like CoinMarketCap and CoinGecko to learn more about other popular ones.
FAQs
Can Beginners Invest in Bitcoin?
Cryptocurrency is a highly uncertain market, and many wise investors have decided to invest elsewhere. However, the best advice for beginners who want to start trading cryptocurrency is to take small steps and use only money you can risk losing.
Is Bitcoin a Good Investment Long-term?
Since its launch, Bitcoin has repeatedly experienced exponential growth. If history repeats itself, as it has several times, Bitcoin will reach new all-time highs every 3-4 years.
Is $100 Enough to Invest in Bitcoin?
Whether or not $100 is sufficient depends on your ultimate goal. If you want to make a lot of money, $100 might not be enough. However, if your goal is to profit or jump on the Bitcoin trend, this is more than enough.
Can Investing $100 in Bitcoin Make You Wealthy?
It all depends on how much Bitcoin rises in the future and when you plan to sell it. For example, if you purchased $100 worth of BTC when the price of a single Bitcoin was $40K and sold it when it reached $60K, you would have made a $50 profit. There is, however, another way to make money by regularly investing as little as $100 in Bitcoin using Dollar cost averaging, similar to how you would top up your savings account.
What will $100 of Bitcoin be Worth in 2023?
Predictions for Bitcoin prices range from $250,000 to $5,000. Inflation will be a significant factor in Bitcoin’s price in 2023. Some predict that the halving of Bitcoin this year will significantly increase its price the following year.
When the reward for mining Bitcoin is cut in half, this is called the “Bitcoin halving.” Every four years, the amount is halved. The halving policy was incorporated into Bitcoin’s mining algorithm to prevent inflation by preserving scarcity.
So, what will happen if I Invest $100 in Bitcoin Today?
Most popular investors and Bitcoin leaders believe the currency will eventually recover and reach new highs. You can increase your investment tenfold if bitcoin’s price skyrockets this year. A hundred dollars is not a large sum; if you invest $100 in Bitcoin, you will not risk losing your money. However, if $100 is a significant sum for you and you cannot afford to gamble it away, you should avoid making speculative investments.
Conclusion
In conclusion, the answer to what if I invest $100 in bitcoin today depends on the individual and their risk tolerance. Bitcoin may be the future currency, or at the very least a store of value, with organizations adding Bitcoin into their balance sheets and El Salvador making it legal tender. However, because the market is so volatile, risk-averse investors are still hesitant to buy Bitcoin or other cryptocurrencies.
To make an informed decision, we recommend conducting extensive research before investing. If you want to maximize your profits from Bitcoin, you need to know how long you should hold onto your coins and understand all associated risks.