What Might Happen If You Invest $100 In Bitcoin Today?

Last Updated January 11th 2022

6 Min Read

Have you considered investing in Bitcoin? What do you like to know about what might happen if you invest $100 in Bitcoin today?

If you invest $100 in Bitcoin today and value appreciates so that your investment will be worth $150, you will have made a profit. However, if prices depreciate, you will make a loss.

Getting started on crypto investments can be tricky, especially if you do not understand the basic concepts. Investing in crypto can be a risky venture, as volatility is something that is constantly worrying traders. Crypto prices fluctuate very fast, which means that while it can be lucrative, investors can also make significant losses.

As a new crypto investor, your first investment choice is most likely Bitcoin, as it is the primary and most popular cryptocurrency. However, given the high prices, you might wonder whether investing $100 in Bitcoin (BTC) could be a wise financial decision.

If you are deliberating on whether investing $100 in BTC is a good decision or not, read on to find out more.

→ Click here to start investing in Bitcoin with $100.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Happens If You Invest $100 In Bitcoin (BTC) Today?

Bitcoin’s performance in 2021 was impressive; hence if you invest $100 in Bitcoin today, you could make huge returns.

Despite volatility, Bitcoin has managed to make a significant uptrend, as in 2020, it was trading at $28,000, compared to the current $69,000.

The value of Bitcoin is also expected to continue rising during 2022, as adoption has skyrocketed. Bitcoin has shifted from a coin used by speculative traders to a major asset class embraced by top Wall Street banks such as JPMorgan and Goldman Sachs.

Moreover, payments giant, PayPal, has continued to expand its cryptocurrency services. After launching the US crypto checkout service in May, the giant has moved to the UK market.

The increasing demand and adoption of Bitcoin are expected to push its prices towards $100,000 by the end of 2022, which will see the coin make a new all-time high.

However, given the high price, a new investor could be wondering, “Can I Invest $100 in Bitcoin?”

Can I invest $100 In Bitcoin (BTC)?

It is possible to invest as low as $100 on Bitcoin.

When purchasing Bitcoin, you do not have to buy the whole coin. Bitcoin is divided into small units called Satoshis, with one Bitcoin being equivalent to 100,000,000 satoshis.

Currently, one Bitcoin is trading for $41,700, which means that with $100, you will purchase 0.002398 Bitcoins. Hence, you can buy and sell Bitcoin worth $100.

Now that you know it is possible to invest $100 in Bitcoin let’s find out what Bitcoin is.

What Is Bitcoin

Bitcoin is the primary cryptocurrency. It is also the most valuable. BTC was created in 2009, and at the time, the cryptocurrency’s value was close to none. However, its prices have shot up tremendously in a decade, and early investors have reaped big.

One can buy Bitcoin from a trusted cryptocurrency exchange. After purchase, you can store it on a digital wallet, where only you will have access to private keys that you will use to retrieve your BTC coins whenever you want to sell. Private keys are made up of 64 digits, and they help to keep your BTC coins safe.

Bitcoin was created using Bitcoin technology which allows payments to be done using a peer-to-peer mechanism. At the time of creation, Bitcoin and blockchain technology was a new concept that many people did not understand; hence the coins were going for very low prices. In its early years, BTC traded at around 10 cents. With an investment of $100, one purchased 1000 BTC. If a trader held on to these $1000 BTC until now, their investment would be worth $50 million.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Makes Bitcoin Valuable?

Unlike commodities such as gold, Bitcoin does not have any intrinsic value.

The forces of demand and supply drive the value of BTC. When the demand is high, prices shoot, and when people start selling, the prices drop. However, despite this limitation, BTC was endorsed by El Salvador as a legal tender. However, the World Bank warned the country that BTC’s volatility would make it hard to administer as legal tender.

Bitcoin boasts of a market capitalization of more than $1.2 trillion. This valuation places it at par with major Wall Street banks such as JPMorgan and Bank of America.

Most people who support Bitcoin believe that it is the future of the financial sector. Unlike traditional financial systems, Bitcoin makes transactions faster and more cost-effective. Despite volatility across the crypto market, Bitcoin has managed to withstand any turmoil because of increased demand and interest from those who perceive it as a better store of value.

How To Invest $100 In Bitcoin

If you want to invest $100 in Bitcoin, you can do so from a cryptocurrency exchange that supports the coin. Alternatives to acquiring Bitcoin include getting involved in mining operations.

When buying Bitcoin from a cryptocurrency exchange, you start by creating an account. Later, you can link your bank account to the exchange, where you can deposit $100 from your account to the exchange. No minimum amount is required to invest in Bitcoin, hence with $100, you can start investing.

After a successful purchase, you can transfer your Bitcoin from the exchange to the wallet. However, it is not mandatory to transfer Bitcoin in your wallet, as you can leave the coins in your exchange account.

Check out: Is Now the Right Time to Buy Bitcoin?

Can Investing $100 In Bitcoin Make You Wealthy?

It is possible to become wealthy by investing in Bitcoin, especially if you hold it long-term. There have been speculations that the price of Bitcoin will increase to over $100,000. On the positive side, BTC continues to make new gains, which means that such highs can be created.

Bitcoin’s adoption also continues to grow by the day, with companies such as PayPal, Visa and MasterCard embracing the cryptocurrency. One of the positive things caused by growing adoption is that it aids in price appreciation.

Companies continue to embrace Bitcoin as a means of payment, and more retail investors keep purchasing the coin.

Put simple, Bitcoin is considered to be a high-risk investment with a potential for huge losses. But while this might be so, high volatility digital assets also have a high likelihood of delivering massive returns.

→ Click here to start investing in Bitcoin with $100.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Factors To Consider When Investing $100 In Bitcoin

Before investing $100 in Bitcoin, you need to consider the following factors:

Volatility. Bitcoin and all other cryptocurrencies can be highly volatile. Prices can drop by a massive margin, which means that you should be prepared for any eventuality.
Cryptocurrencies are still new. Blockchain and cryptocurrencies are still a new technology despite being around for the past decade. This means that there is growth potential, and we could witness major price rallies.
Bitcoin transactions are not 100% anonymous. Transactions are recorded on a public ledger that anyone can access, so tracing the Bitcoin you send or receive is possible.
Some Bitcoin investments are not genuine. Before investing in any opportunity that links to Bitcoin, you need to conduct your research to ensure it is genuine.

Is It Good To Invest $100 In Bitcoin?

It is not too late to start investing in Bitcoin. Those who invested early had a chance of making massive profits. However, this does not mean that those who invest right now will also not make massive gains. When you make a $100 Bitcoin investment now and HODL for the long term, you could reap massive returns in the future.