Have you ever thought about investing in cryptocurrency? If so, you’ve probably wondered about the various digital currencies that are available for trading and which one would be best for you. Do you want to know what would happen if you invested $100 in bitcoin today?
Because bitcoin is a digital financial asset, if you invest $100 in it today and its value rises to $110, you will profit. However, if its value falls below $100, you will lose money if you decide to sell. However, if you sell your asset, you will only make a profit or lose money.
Continue reading to learn more about bitcoins and how to invest in them.
What Happens if You Invest $100 in Bitcoin Today?
The price of this cryptocurrency has been on an upward trend in 2021, so if you invest $100 in bitcoin today, you will most likely reap enormous gains in the future.
As it stands, bitcoin’s value has skyrocketed, quadrupling in 2020 to levels above $28,000. And, given the high-profile support from multinational corporations such as Tesla and Mastercard, this value is only going to rise further, implying higher returns for investors.
But that isn’t all. Due to increased client demand, the Bank of New York intends to offer custody services for digital assets such as bitcoin. Bitcoin could reach $55,000 or $60,000 by December 2021, according to the CEO of Galaxy Digital, a well-known cryptocurrency bull.
But you may be wondering if you can really invest $100 in Bitcoin. Let us investigate.
Is it possible to invest $100 in Bitcoin?
Bitcoin can be purchased for as little as $100.
In fact, you can purchase bitcoin fractions up to $100, which means you don’t have to purchase the entire coin, which is currently priced at $32,979. (1 July 2021). Satoshi, the bitcoin unit, is divisible to eight decimal places, and one bitcoin is equal to 100,000,000 satoshi.
What exactly is Bitcoin?
Bitcoin, or BTC, is the world’s most valuable cryptocurrency.
It was launched in January 2009 with a value of $0 but has since reached levels of up to $63,000. When you buy bitcoins or other cryptocurrencies, you keep them in a digital wallet that you access with private keys.
The keys are made up of a random set of 64 digits that allow you to own and use bitcoins. As a result, it’s critical to keep them hidden or entrust them to the care of a wallet provider.
This virtual currency is created, distributed, traded, and stored using blockchain, a decentralised ledger system, and payments are made using peer-to-peer technology. Bitcoins rely on the processing power of vast unidentified private global computer networks to maintain and update the blockchain.
The cryptocurrency also relies on private key encryption to verify account owners and register transactions, while other investors use public keys to identify your digital wallet.
To demonstrate how bitcoin works, anyone who purchased the asset at the time and held onto it through the ups and downs has made enormous returns today. Furthermore, depending on the size of your initial investment, your returns could be in the millions or billions of dollars if you hold the asset for the entire period.
For example, if you invested $100 at a time when a bitcoin was worth 10 cents, you would have purchased 1,000 bitcoins. If you had kept the 1,000 bitcoins, their value would have risen to more than $60 million by April 2021.
What Makes Bitcoin So Expensive?
Bitcoin has no intrinsic value and is not backed by a physical asset like gold.
However, its value rises when more people buy it and falls when fewer people buy it. Its value is solely determined by market demand. It is not legal tender because it is a digital currency with no physical presence, and no central bank or government issues or backs it.
Nonetheless, it is the most notable cryptocurrency, with a market capitalization of $1.15 trillion. This is higher than the top three largest banks in the world, namely J.P. Morgan, Bank of America, and China’s Industrial and Commercial Bank.
Many bitcoin supporters believe that digital currency is the way of the future and that bitcoin enables a faster, more cost-effective payment system for global transactions. Despite turbulence over the years, the cryptocurrency’s value has risen due to increased demand from investors who see bitcoins as a store of value similar to gold.
It’s no surprise that many people refer to it as bitcoin gold.
How to Make a $100 Bitcoin Investment
The most common way to acquire bitcoins is through a bitcoin exchange, but they can also be obtained through a broker or mining operations.
You can also invest by purchasing stock in a blockchain-related company. Apart from the minimum amount set by your preferred exchange platform, there is no minimum amount to invest in bitcoins, so you can start with $100.
You must first create an account with your crypto exchange, after which you must link your bank account to the exchange. To buy bitcoins, transfer $100 from your account to the exchange, and then transfer the bitcoins to your digital wallet.
You can keep your bitcoins in your exchange account as well.
Will a $100 investment in Bitcoin make you a millionaire?
If you hold on to your investment for the long term and bitcoin’s value rises to more than $100,000, you could become a millionaire. Fortunately, the value of bitcoin continues to rise, reaching $40,000 in January and $50,000 in February 2021.
Analysts predict that it will reach $100,000 by 2022.
Bitcoin is also gaining popularity and is on its way to becoming a mainstream currency, with global financial institutions such as Paypal and Visa now offering crypto services.
Large institutional investors, such as Tesla, are also considering using bitcoin as a payment method as well as a hedge against financial crises. They are exchanging their cash reserves for bitcoins.
Finally, retail investors are buying bitcoins in greater numbers.
Many people regard Bitcoin as a high-risk investment with the potential for massive losses. While this is true, high volatility assets have a high probability of delivering massive returns. You can also check out Segredos do bitcoin 3.0 funciona
What to Think About Before Investing $100 in Bitcoins?
When investing $100 in bitcoins, you should think about the following:
- Understand the true costs. Learn about the exchange rate, how it was calculated, whether it includes markups or additional fees, and how long the transaction will take.
- Your willingness to take risks. Bitcoin’s price fluctuates dramatically, so you should be prepared for such a scenario, as seen in 2014 when the bitcoin price dropped by 80%.
- Virtual currencies are still in the early stages of development. As a result, there are still unresolved issues, such as the identified blockchain elements that could abuse their power to keep the ledger up to date.
- Bitcoin transactions may not be completely anonymous. Interested parties can view publicly available information about each bitcoin transaction, link your transactions to your public keys and IP address, and estimate how much bitcoin you own.
- Bitcoin ATMs aren’t the same as traditional ATMs. As a result, they are not linked to your bank and their transaction fees can be quite high.
Some bitcoin investments may be deceptive. Conduct thorough research before investing in any bitcoin investment opportunity, as there is a high risk of being duped into a scam.
Is Bitcoin Worth Investing In?
While it would have been preferable to invest in bitcoin sooner, it is not too late to do so now. The value of the virtual currency may continue to fall from time to time, and a $100 investment in bitcoin today could yield enormous returns in the future.
Do you want to put Bitcoin in your IRA?
I recommend using a company like iTrustCapital, which allows you to invest in Bitcoin through your IRA.
iTrustCapital is the leading Crypto IRA / 401k platform, allowing you to invest in cryptocurrencies, gold, and silver through your retirement accounts.