What Might Happen if You Invest $100 in Bitcoin Today?

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Investing $100 successful Bitcoin coming tin beryllium a thrilling yet uncertain venture, fixed its volatile quality and nan ongoing statement surrounding its value. While Bitcoin has seen staggering growth, it remains a risky asset, and beginners should tread cautiously, ensuring they tin withstand nan imaginable ups and downs of nan cryptocurrency market.

Bitcoin is nan oldest and best-known of nan modern harvest of integer currencies. It’s a cryptocurrency, aliases integer currency, not backed by immoderate government. That makes it very different from nan US dollar, and it comes pinch unsocial risks that could make Bitcoin a bully aliases bad investment, depending connected your unsocial finance goals.

If you’re looking into cryptocurrency for nan first time, you whitethorn beryllium wondering, “Can I commencement by investing $100 successful Bitcoin?” The reply is decidedly yes. But earlier you make your first investment, location are a fewer things you should cognize astir crypto.

Here’s a person look astatine what investing $100 successful Bitcoin coming looks for illustration for caller investors and veterans alike.

What Is Bitcoin?

Bitcoin is simply a integer rate that exists only connected nan Internet. But if you deliberation astir it, overmuch of nan money you person coming only exists connected nan Internet. If you’re paid pinch nonstop deposit, you whitethorn person money coming successful and retired of your accounts without ever rubbing a beingness dollar bill.

With that successful mind, Bitcoin offers a wholly caller return connected currency, and it’s arguable for immoderate of nan features that besides make it truthful absorbing (we’ll get into that later).

Bitcoin was created successful 2009 by a mysterious fig who goes by nan pseudonym Satoshi Nakamoto. But while Nakamoto is known arsenic nan currency’s founder, it is not controlled by immoderate azygous individual. Instead, Bitcoin is simply a decentralized rate that operates done a web of computers worldwide known arsenic cryptocurrency miners.

Cryptocurrencies, including Bitcoin, trust connected a exertion called blockchain.

A blockchain is simply a ample database publically held and stored by each participating miner computers and anyone other who wants to download a transcript of nan information themselves.

Every azygous Bitcoin transaction that has taken spot is tracked successful this nationalist database. Because galore computers astir nan world person a copy, this grounds is highly difficult to manipulate.

Anyone pinch an Internet relationship tin participate successful nan cryptocurrency economy. To bargain and clasp bitcoin you tin usage a cryptocurrency wallet, for illustration 1 from Ledger, Trezor, aliases MetaMask. You tin besides bargain and clasp your rate done a cardinal speech for illustration Coinbase aliases Gemini.

While it’s reasonably easy to bargain bitcoin, particularly if you’ve ever invested successful nan banal market, that doesn’t mean it’s correct for everyone. When investing successful Bitcoin and different cryptocurrencies, it’s wise to debar investing much than you tin spend to lose. We’ll return a person look astatine why successful nan adjacent section.

What Is Bitcoin Worth?

The worth of a bitcoin goes up and down frequently; truthful overmuch of its volatility is owed to nan contention astir Bitcoin’s worth. When it first launched successful 2009, a azygous bitcoin was only worthy a fewer cents, but astatine its peak, it was worthy astir $60,000. As of this writing, a azygous bitcoin is weighted astatine astir $30,000.

As you tin spot from those numbers, early Bitcoin investors who held connected done nan crypto’s ups and downs apt made a fortune. If you bought $100 of bitcoin erstwhile it was worthy a fewer cents and held it until it was worthy much than $50,000 apiece, you could person easy made millions of dollars.

The value of Bitcoin has been highly volatile complete time. Here’s a 10-year value history from nan cryptocurrency search tract CoinMarketCap.

But nan contention comes from nan galore detractors who opportunity Bitcoin and different cryptocurrencies are efficaciously worthless. These see immoderate high-profile Wall Street CEOs, analysts, and authorities officials. If they are right, Bitcoin will yet autumn to a worth of zero aliases very adjacent to it.

With enthusiasts saying Bitcoin value will spell “to nan satellite “ and others saying it will spell to zero, what is its existent value? At this point, dissimilar buying stocks, it’s somewhat difficult to opportunity precisely what a bitcoin is worth.

Bitcoin is successful constricted supply. There will only ever beryllium 21 cardinal created (about 19 cardinal beryllium arsenic of December 2023). The scarcity drives up nan worth and makes it useful arsenic a shop of worth online, somewhat for illustration a integer type of gold. But if it turns retired to beryllium fools gold, a large finance successful Bitcoin whitethorn go a large mistake.

Can Beginners Invest successful Bitcoin?

If you are brand caller to nan world of investing and person ne'er bought stocks, communal funds, exchange-traded funds, aliases different types of investments—for instance, a status relationship done your workplace—you whitethorn want to skip Bitcoin for now and start investing pinch nan banal market. The banal marketplace is simply a batch much established pinch hundreds of years of history and clearer methods of deciding nan worth of an asset.

However, if you person a small investing experience, you tin perfectly put successful Bitcoin.

Buying bitcoin done a centralized speech is akin to buying banal done your favourite online banal speech aliases your broker’s mobile app.

If you’re comfortable utilizing a machine and person your accusation handy, you tin create an relationship pinch astir exchanges successful astir 10 minutes aliases less. Then it takes conscionable a fewer minutes to nexus your slope account, make a deposit, and money your cryptocurrency speech relationship for nan first time. Some exchanges connection nan expertise to instantly bargain Bitcoin and different cryptocurrencies, moreover if your bank’s deposit has not yet been cleared.

If each of that sounds overwhelming, there’s nary harm successful skipping this peculiar plus class. But if you’re excited astir integer currencies and judge blockchain exertion is simply a large portion of nan early of finance, you whitethorn find nan risks of Bitcoin good worthy it.

What May Happen if You Invest successful Bitcoin

An finance successful Bitcoin is acold from guaranteed. Things mightiness move retired great, and you could gain your money backmost tenfold, possibly moreover more. On nan different hand, your finance mightiness driblet down to zero. While I’d for illustration to deliberation your likelihood successful Bitcoin are amended than successful Vegas, galore riskier cryptocurrencies look for illustration gambling.

Unlike government-backed fiat currencies, location is nary ample statement down Bitcoin that guarantees its value. I don’t want to sound for illustration a surgery record, but it’s important to understand that you should only put what you tin spend to suffer erstwhile buying cryptocurrency.

How Much Money Do You Need to Buy Bitcoin?

It’s not difficult to put successful Bitcoin, but support it a mini information of your portfolio. You don’t person to bargain a afloat Bitcoin astatine once. Like a dollar is divided into cents, bitcoin is easy divided into smaller slices.

Most cryptocurrency exchanges let investors to commencement very small. You whitethorn beryllium capable to bargain arsenic small arsenic two, five, aliases $10 of bitcoin erstwhile entering a transaction. If you person a $1000 portfolio and want to commencement pinch Bitcoin arsenic only 5% of your investments, it’s easy to execute that utilizing astir centralized cryptocurrency exchanges.

To make a agelong communicative short, you don’t request overmuch money to bargain Bitcoin. If you’re tense astir making your first purchase, see starting mini pinch astir 5 dollars. This limits your consequence and gives you clip to determine if it’s correct for your finance goals. If you for illustration nan experience, you tin ever put much later.

How Much Would I Have If I Invested $100 successful Bitcoin?

Early Bitcoin investors who sold astatine nan top, aliases moreover still clasp their currency, person apt seen immense gains. If you bought Bitcoin early, moreover successful mini amounts, you could beryllium a millionaire.

If you invested $100 successful Bitcoin successful Bitcoin successful July 2013, complete 10 years ago, you would person bought 1.47 BTC. At its peak, that was worthy astir $101,500. That’s an unthinkable gain!

As of this writing, 1.47 BTC is worthy astir $38,743.27.

That’s still a monolithic return connected investment.

Where to Buy $100 successful Bitcoin

If you’re superior astir learning nan soul workings of cryptocurrencies, you whitethorn want to usage a self-controlled integer rate wallet. But for anyone who doesn’t see themselves a tech nerd, nan easiest spot to bargain and waste cryptocurrencies is pinch a centralized cryptocurrency exchange.

Here’s a look astatine immoderate of nan most reputable cryptocurrency exchanges disposable to investors and traders successful nan United States:

  • Coinbase: Coinbase is 1 of nan biggest and astir recognized cryptocurrency exchanges successful nan United States. While it doesn’t travel pinch nan lowest trading fees, it supports a ample number of currencies and makes buying and trading easy.
  • Gemini: Gemini is different ample cryptocurrency speech based successful nan US. The Winklevoss brothers of Facebook infamy founded this exchange. Gemini is simply a superior cryptocurrency speech pinch galore bank-like features, including nan expertise to gain liking from astir cryptocurrencies held successful your account.
  • Binance.US: Binance.US is nan limb of Binance focused connected American traders. Binance is by acold nan largest world cryptocurrency exchange. However, nan acquisition for users successful nan United States is not precisely nan aforesaid arsenic successful nan remainder of nan world owed to US securities regulations. Despite those limitations, competitory pricing and entree to a ample database of currencies could make Binance.US a bully location for your crypto.
  • Kraken: Kraken is simply a cryptocurrency speech that whitethorn beryllium amended for those pinch much cryptocurrency knowledge. Kraken offers a wide database of currencies, low, competitory fees, and a very bully gain characteristic wherever you tin person generous rewards for staking aliases holding aggregate currencies.
  • Robinhood: Robinhood offers wholly commission-free cryptocurrency trades. While it only supports a short database of cryptos, nan debased costs is very attractive. Also statement that you can’t retreat cryptocurrency from Robinhood to an extracurricular wallet, though that characteristic whitethorn beryllium coming pinch Robinhood’s caller wallet product.
  • Webull: Another commission-free trading app, Webull is built for progressive traders and supports up to 41 currencies depending connected your location. The debased costs are attractive, but again you can’t retreat cryptocurrency holdings to extracurricular wallets aliases accounts.
  • Public: Public is different brokerage that started pinch stocks and grew to support cryptocurrencies. The nationalist supports 30 cryptocurrencies. While location are nary commissions, a 1% to 2% markup is included successful nan waste and acquisition value arsenic a fee.

How Much Are Fees to Buy $100 of Bitcoin?

Coinbase is 1 of nan biggest and best-known exchanges, but trades tin beryllium costly. Using nan main platform, trades are taxable to a level interest per waste and acquisition positive a spread. The interest varies based connected nan waste and acquisition size. Anyone tin upgrade to nan progressive trading level pinch little fees.

Screenshot of a individual Coinbase relationship buying bitcoin and showing each nan fees associated pinch their platform

Robinhood Crypto offers fee-free cryptocurrency trades. While nan database of supported currencies is shorter than immoderate competitors, you can’t hit free trades!

screenshot of a individual Robinhood app relationship buying bitcoin

Can You Mine $100 successful Bitcoin?

Earlier successful this article, I mentioned nan conception of coin mining. Whether aliases not you participate successful mining, nan Bitcoin mining process greatly impacts coin holders and anyone making cryptocurrency transactions connected nan Bitcoin blockchain.

Bitcoin miners are computers competing against each different to process and verify nan adjacent artifact of transactions. The block—a group of transactions from nan aforesaid period—is wherever blockchain gets its name.

When a miner is first to win successful solving nan analyzable mathematics to process a caller artifact of transactions, that personification is rewarded pinch nan transaction fees from caller users and recently minted bitcoin. Because Bitcoin is truthful valuable, location are many, galore miners astir nan world competing to gain that reward. Once each Bitcoin has been mined, rewards will beryllium reduced to only transaction fees.

Because truthful galore miners compete to gain bitcoin rewards, it’s highly difficult for solo miners to gain thing independently.

If you want to participate successful Bitcoin mining, you whitethorn request to bargain costly machine hardware and person nan in-depth method knowledge to get everything group up and moving properly.

To summation their chances of winning a reward, immoderate miners propulsion their resources together and collaborate successful a mining pool. But whether you excavation done a excavation aliases connected your own, you are improbable to get rich | pinch Bitcoin mining these days.

In fact, miners whitethorn walk much money connected nan energy powering their computers than they gain from mining rewards. Most group are champion disconnected buying Bitcoin done a favourite cryptocurrency exchange.

Bitcoin Safety and Security

If you determine to move guardant and bargain Bitcoin, it’s basal to travel online information champion practices. That includes utilizing a unique, difficult-to-guess password connected each financial website, including cryptocurrency exchanges, banks, brokerages, in installments paper companies, and different lenders.

Cryptocurrency is not FDIC insured, and if a cryptocurrency relationship is hacked, you’re improbable to beryllium reimbursed by nan speech for your losses. If you don’t consciousness assured keeping your online relationship unafraid and utilizing beardown passwords, you whitethorn want to skip cryptocurrency altogether.

Other Cryptocurrencies to Know Besides Bitcoin

Of course, Bitcoin isn’t nan only cryptocurrency that’s grabbed headlines complete nan past fewer years. Ethereum, Dogecoin, Shiba Inu, Stellar Lumens, Avalanche, Cardano, and Solana are conscionable a fewer of nan much than 10,000 cryptocurrencies connected nan marketplace today.

However, it’s important to statement that Bitcoin and Ethereum are arguably nan safest and astir unchangeable cryptocurrency projects today. Investments extracurricular of these halfway currencies travel pinch moreover much consequence and volatility.

To study much astir different apical cryptocurrencies, cheque retired websites for illustration CoinMarketCap and CoinGecko.

How to Decide if Bitcoin Makes Sense for You

Bitcoin has a batch of pros and cons. While it’s awesome to deliberation astir what would hap if you make an finance that grows tenfold aliases more, it’s besides important to retrieve nan consequence of taking awesome losses.

For savvy investors, diversification is an important conception to follow. That could mean adding Bitcoin and different cryptocurrencies to your portfolio. If you’ve done your research, understand really Bitcoin works, and still deliberation it makes consciousness for you, investing your first $100 successful Bitcoin could beryllium a bully measurement to dip your toed successful nan crypto h2o earlier making a larger, riskier commitment.

Final Thoughts connected What Might Happen if You Invest $100 successful Bitcoin Today

Investing $100 successful Bitcoin tin output important gains aliases important losses owed to its volatile quality and arguable status. Bitcoin’s unsocial features, for illustration decentralization and constricted supply, group it isolated from accepted currencies. The cryptocurrency’s worth has fluctuated dramatically, from specified cents to tens of thousands of dollars per bitcoin. 

While early investors profited immensely, skeptics reason it could yet go worthless. Beginners should only put what they tin spend to lose, considering nan risks. Bitcoin’s worth remains uncertain, making it important to investigation and understand earlier investing. Diversification is wise, and starting mini tin connection vulnerability to crypto’s imaginable while minimizing risk.