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What happens if I invest 100$ in Bitcoin (BTC) today?

James King -

Bitcoin, the first and most popular cryptocurrency globally, has been in the news in the last months. It could not be otherwise. The Bitcoin price has been declining alarmingly since the beginning of 2022. From an all-time high price above $68K on November 10, 2021, it has fallen to levels below $40K.

However, it is common to read (especially on social media) comments by supposed crypto experts advising to buy Bitcoin right now. “Buy the dip” is the mantra. This notion is not wrong. The best moment to invest is when the price of an asset is low. However, the inherent price volatility of cryptocurrencies, including Bitcoin, makes it challenging to find the optimal entry point.

So, at this moment, many people interested in debuting as crypto investors wonder whether they should give Bitcoin a try right now. Let’s put it in other words, if I invest $100 in Bitcoin today, will I have a profit in the next few months? Let us discuss it in detail.

Many people are interested in investing in Bitcoin, or another cryptocurrency, because of the so-called fear of missing out (FOMO). We all have heard or read success stories of early investors that hit big on Bitcoin. However, before you invest in an asset, you should have at least a basic understanding of what you are investing in. In the case of Bitcoin, learning about the factors that determine its value will help you make better investment decisions.

Investing in Bitcoin just to do what is in vogue at the moment is a recipe for losing a lot of money. So, to find out whether your interest in investing in Bitcoin is genuine, answer these questions honestly:

  • Why do you want to buy Bitcoin now and not before when its price was lower?
  • Do you plan on holding your Bitcoin investment for a long time?
  • Are you looking to make quick money with Bitcoin?
  • If you answered yes to the previous question, why do you think you can sell your Bitcoin holding at a higher price within a short time?
  • Are you aware of the risks of investing in Bitcoin? If so, can you tolerate such risks?
  • Can you afford to lose all the money you invest in Bitcoin?

If you think you are ready to debut as a Bitcoin investor despite the risks involved, you probably will ask one of the most popular questions: how can I buy Bitcoin?

Luckily, many crypto exchanges sell Bitcoin. You can buy it with different payment methods, including credit cards and other cryptocurrencies. If you already hold some cryptocurrencies and want to invest in Bitcoin, you can use LetsExchange.io to convert your assets at very competitive rates. You don’t need to register or complete KYC checks to swap cryptocurrencies on our platform.

Bitcoin Overview

Bitcoin was launched in January 2009. It was the first cryptocurrency to exist and has become the most valuable one by market capitalization. The idea for this digital coin was presented in a whitepaper authored by Satoshi Nakamoto. The true identity of the creator of Bitcoin remains unknown. But there is little doubt of the enormous impact that his or their creation has had on the financial world.

Bitcoin is a decentralized peer-to-peer (P2P) payment system. It allows transactions between two parties without an intermediary like a bank or another financial institution. Because of its proof-of-work (PoW) consensus algorithm, mining Bitcoin consumes electricity tremendously. As a consequence, some activists and organizations consider Bitcoin as non-environmentally friendly.

Despite this negative association, Bitcoin has gained wide acceptance in several areas. Low transaction fees make it a good solution for international remittances. More businesses accept Bitcoin as valid payment for goods and services every day. Countries like El Salvador have recognized this cryptocurrency as a legal tender. As more institutions accept Bitcoin officially, Bitcoin will likely become a mainstream currency.

Is It Profitable to Invest in Bitcoin Today?

Bitcoin has experienced a sharp price drop in the last three months. What’s more, the BTC has been fluctuating widely without stabilizing. Several analysts believe the BTC price will likely fall again to its support level at $37.5K. Others think the price drop could be even more pronounced. If the price falls further, you can invest in Bitcoin, but nobody knows when and by which factor it will bounce. If you invest 100$ in Bitcoin, your potential profit will be minimal in the short term.

Is 100$ Enough to Invest in Bitcoin?

Another common question asked by novice investors is: can I invest $100 in Bitcoin? In principle, the answer is yes. However, it might or might not be the correct amount depending on your investment goal. If you want to make a small fortune from your investment, $100 will not be enough. Long gone are the days when Bitcoin could yield enormous gains from humble initial investments.

However, if you want to use price volatility in your favor to make a profit, even if small, then $100 is more than enough. In fact, you could invest $100 in Bitcoin regularly, withdrawing your gains within a short time. This strategy is known as trading, and you can perform it within short periods of a few minutes or hours. But if what you want is only to get familiar with investing in Bitcoin, you could even start with less than 100$ worth of Bitcoin.

Can You Lose Money by Investing in Bitcoin?

Yes, of course. All cryptocurrencies are risky investment vehicles. Volatility can lead to enormous gains or massive losses. When day trading, if you sell your BTC holding at the wrong moment, you may lose your initial investment or at least part of it. If you hold your investment for a long time, the market can crash for unforeseen reasons and send the BTC price into a deep dive. You might be forced to sell at a lower price than you bought, incurring losses.

And then you have other risks like being the victim of a hack. If a hacker gains access to your wallet, your Bitcoin holding could disappear instantly. Since Bitcoin transactions are irreversible, you could hardly recover your stolen digital coins. Also, there are many scams out there. In some cases, you are promised a big profit in an investment. The scammer claims that all you need to do to participate is send BTC to a given wallet address. If you fall for it, you may never see your ‘investment’ again, let alone the promised profit.

Should You Invest in Bitcoin a Lot of Money Right Now?

This question is difficult to answer. Despite volatility, Bitcoin has continuously increased its value over the years. Most experts believe this trend will continue for a few more years. However, things could go wrong even for Bitcoin. Hence, the decision of how much money you should invest in this cryptocurrency is yours only. Never invest more than you can afford to lose.

You may be wondering: if I invest $100 in Bitcoin today how much is it worth by the end of the year? Well, predicting the future price of a cryptocurrency is a difficult task. The good news is that many experts think that after falling to its support level of $37.5K, Bitcoin will bounce and probably set a new all-time high price. If it happens, your $100 investment could increase several times.

FAQ

Is Bitcoin (BTC) a Good Investment?

Yes, it is. Despite occasional price drops, Bitcoin will likely continue increasing its value in the next few years. We probably won’t see meteoric BTC price surges anymore, but long-term investors can reap reasonable profits. If you are not willing to wait for a long time to earn money with Bitcoin, you can try trading.

Where to Store Bitcoin (BTC)?

It would be best to have a separate Bitcoin wallet to store your BTC holding. There are different types in the market: hardware, mobile, desktop, and web-based wallets. Choose the one that suits your needs. Remember that hardware wallets are the safest ones. Some crypto exchanges offer an online wallet as part of their services. But you should not leave your BTC holding on the exchange to reduce the risk of losing your digital assets.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.

Stay tuned for further updates, crypto guides, and market insights from LetsExchange. You can also follow us on Twitter, Facebook, Reddit, Instagram, LinkedIn, Medium, Quora, Telegram, Steemit, and Bitcointalk for first-hand information from our team.