Most people begin their cryptocurrency journey by investing in Bitcoin. Being one of the oldest cryptocurrencies, Bitcoin is widely accessible. Still, the world of cryptos isn’t easy to navigate. That’s why many people ask what happens if you invest $100 in Bitcoin today?
The answer is that it depends on how quickly it generates returns. You certainly should not expect any explosive results by investing a small amount like $100. Bitcoin can swing to great heights and then suddenly drop the next day. The best approach would be to purchase very small amounts of this cryptocurrency. In this article, we’ll cover the possibilities of what can happen if you invest in Bitcoin today.
Is It Good to Invest $100 into Bitcoin?
Will investing $100 in Bitcoin open the avenues of wealth for you? That isn’t true. This is because this digital asset is very volatile. It means that it fluctuates massively in short intervals. You may notice some returns in a tiny time window. But if it fluctuates, the value will be steeply deep. You will lose some great amount of money.
Bitcoin price can lower by 30% in one particular day. Are you worried about losing $100 if the value of the currency drops? You should not put this amount in Bitcoin. But if you are worried, it’s fine to invest money into Bitcoin.
What Are Some Benefits of Investing in Bitcoin?
Even though it’s highly volatile, there are some benefits of investing in Bitcoin. These include the following:
- The value of the dollar is expected to increase or decrease steeply. Inflation has already arrived. Bitcoin’s supply is capped at 21 million. Thus, it can function as a hedge against currency inflation.
- Bitcoin is fast entering into the mainstream. Many companies are using it for transactions. It has also become normal for many people to buy commodities using Bitcoin.
- Bitcoin is built on the decentralized Blockchain technology. So, investors do not need to pay the conventional bank fee.
- Bitcoin is very easy to use in different transactions.
- Bitcoin trading occurs round-the-clock on several platforms. Thus, it facilitates trading at any time and is also highly liquid.
- Bitcoin has shown an immensely greater return potential in comparison to stock.
Risks of Investing in Bitcoin
There are always two sides of a coin. Like benefits, there are various risks involved in Bitcoin investing. These include the following:
- Bitcoin owners lose access to this cryptocurrency if they lose the passwords of their accounts.
- The price of this cryptocurrency is incredibly volatile.
- Bitcoin is not money. It has no value. There aren’t any legitimate bodies helping the cryptocurrency retain its value.
- Bitcoin cannot survive disasters like technology or the internet collapsing. So, it is not a shield to protect yourself against future disasters.
When Is the Right Time to Invest $100 in Bitcoin?
With cryptocurrencies like Bitcoin, there isn’t a right and wrong time. You can buy them whenever you want. Many investors purchase and sell Bitcoin during the time when the New York Stock Exchange or the NYSE is open.
Average individuals can buy Bitcoin at any time of the day. But it will help you if you know which hours are more suitable for buying Bitcoin. For this, you need to analyze months of data and discern trends. A general rule is to buy Bitcoin early in the morning. This is the time when the NYSE hasn’t opened.
Currently, investing $100 in Bitcoin can be beneficial. This is because Bitcoin and other cryptocurrencies are going through a bear market. It means that many investors believe that Bitcoin’s price will increase in the future. So, you can buy Bitcoin at a lesser price, provided that the cryptocurrency can yield you profit.
Moreover, there is so much uncertainty. You don’t know whether a better may come after you invest. Contrarily, if you keep waiting, when will you realize your investment?
Bitcoin Prediction for the 2023 and 2024
Many crypto experts have explored the potential future scenarios for investing in Bitcoin. Their studies pinpoint that the digital currency can achieve growth. This growth will occur at the end of 2023. It will also happen during the early months of 2024. If this proves to be right, a $100,000 price target can be reached. We can arrive at it within the coming few months.
It has been estimated that Bitcoin’s price can go well beyond $100,000 during the first four months of 2024. After that, its price is expected to fall to $66,000.
How to Invest in Bitcoin Safely?
When it comes to investing $100 or any amount in Bitcoin, your approach to investing can decide your future. At the core, there are just two rules that you need to follow to safely invest in this digital currency. These are:
- Only invest an amount that you can afford to lose: It is crucial that you do not empty your entire bank balance to invest in Bitcoin. By now, you know that its prices can fall dramatically. So, if you invest too much, you won’t be left with anything. So, first, put aside the money needed for fulfilling important things, such as paying your bills, rents, loans, etc. The money that’s remaining can be invested in Bitcoin.
- Do not be greedy and fearful: Greedy means buying Bitcoin too much when its price is high. It is the time when the market is euphoric. But this is not a good practice as the market can fall the next day or hour! Fear is linked to selling at a loss.
The fact that investing in cryptocurrency is risky cannot be denied. Having said that, Bitcoin is still the safest kind of digital asset. It has survived for almost a decade in spite of the loopholes in its security and technology. Moreover, Bitcoin has been the biggest crypto by market cap ever since its inception.
Final Words
So, what can happen if you invest $100 in Bitcoin today? Despite the uncertain nature of this digital asset, one of the three scenarios is bound to occur. Your investment’s value can decrease, increase, or stay exactly as it is. Since $100 is a small amount, you won’t lose much even if the prices decrease. We wish you a successful Bitcoin investment.