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 that 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 bought 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 invested in Bitcoin 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 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 cryptocurrency 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 rewards nature can easily suck in people who are vulnerable to gambling addiction. 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.
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 revolutionized the financial world and spearheaded the creation and development of the crypto industry and the crypto market.
As Bitcoin becomes more widespread and average users learn more about it, there is a chance the coin’s price will become a lot less speculative. The more Bitcoin believers are there, the more stable the Bitcoin price will be.
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 underlying technology, blockchain, 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 BTC price starts to decline, driving the value of the asset lower.
Is It Smart to Invest in BTC Right Now?
BTC is currently somewhat stable — there have been neither massive corrections nor drastic price spikes in the past few days. Well, its price went from $58K on October 28 to $64K on November 2, but that can hardly be called a massive price change for Bitcoin. Overall, we’re still in a Bitcoin bull market.
Most experts are currently predicting that Bitcoin will continue to rise in the near future — despite the massive growth, bulls are still buying the coin, not letting its price drop too significantly. As a result, Bitcoin is not expected to undergo a correction anytime soon.
However, (and we know we always say this, but it is important), cryptocurrencies are way too unpredictable most of the time to make any reliable price predictions. We generally advise against investing in crypto when the market and that particular coin or token is booming, but, as we had outlined above, this rule does not always apply to Bitcoin (or Ethereum), which can continue to go up for weeks on end.
At the end of the day, as long as you assess the risks and the asset you’re planning to invest in doesn’t seem to be due for a correction, investing in it should be a safe bet, especially if you don’t plan on selling that asset right away.
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 to simply 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.
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.
Considering Bitcoin is currently around $60K, if you buy $100 worth of it now, it will need to go up to roughly $588 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 wallet may be stolen, or you might lose access to it. Thirdly, you may run into a scam… And the list goes on.
While the industry has developed quite a lot, and there are many reputable crypto services out there these days, cryptocurrencies are still neither safe nor protected as other assets. Remember to stay vigilant and never invest more than you can afford to lose.
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 buy Bitcoin as it is to buy anything else online! There are tons of great services that offer user-friendly and hassle-free ways of purchasing 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 or just purchase BTC while reading this article.
Is It a Good Idea to Invest $100 in Bitcoin?
Ultimately, it’s up to you whether investing $100 in Bitcoin 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 is a part of an investment plan, or if you want to hodl that Bitcoin 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.
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.
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.
The post What Might Happen if You Invest $100 in Bitcoin (BTC) Today? appeared first on Cryptocurrency News & Trading Tips – Crypto Blog by Changelly.