Crypto-currency prices can fluctuate wildly in a short period of time – a 30% drop or gain in price in a single day is not unheard of in the crypto-currency market.
If you’re looking to take your first steps into the world of crypto-currencies, the most obvious choice would be bitcoin, the largest crypto-currency on the market. If you’re wondering “What if I invested $100 in bitcoin today?“, we’re going to give you an overview of what you can expect if you invest $100 in bitcoin in 2023.
If you invest $100 in bitcoin today, don’t expect to make a fortune. However, you could still make solid gains if your bitcoin bet pays off.
Can I invest $100 in bitcoins today?
Yes, you can invest $100 in bitcoins today. In fact, you can invest as little as you want, because you don’t have to buy 1 whole BTC. Most crypto-currency exchanges will allow you to buy very small amounts of Bitcoin, even for just a few dollars.
How far can a $100 investment in Bitcoins go?
In the table below, you can see how a $100 investment would have performed historically. For each year, we assume that the $100 was used to buy BTC on January 1 and that the investment was held until January 2023.
|Year||Bitcoin price as of January 1||BTC acquired with an investment of 100 dollars||Value of the investment as of January 31, 2023|
|$0.30||333.33 BTC||7.63 million dollars||76,300x|
The days when a small investment in Bitcoin had the potential to turn into a fortune are almost certainly over. Bitcoin’s market capitalization is simply too large to reach the massive multiples that were possible when buying Bitcoin in 2011, 2012 and 2013.
As of this writing, Bitcoin has a market capitalization of $443 billion, even though it is down 66% from its all-time high. Waiting for a 100- or even 10-fold increase in an asset that is already this large is probably not the best idea.
As of this writing, $100 will get you 0.0043 BTC. Let’s look at how a $100 investment in Bitcoin today would perform under different scenarios.
|Hypothetical performance of $100 invested in bitcoins (0.0043 BTC) on January 31, 2023.|
|Bitcoin price||Value of the investment||RETURN ON INVESTMENT|
|68,770 (current record)||$295||2.9x|
|1 million dollars||$4,300||43x|
Is it worth investing in bitcoin in 2023?
While we’ve shown that you shouldn’t expect to get rich with a $100 investment in bitcoin, that doesn’t mean that bitcoin has nothing to offer as an investment in 2023.
The first factor that might indicate that this is a good time to buy bitcoin is simply the fact that BTC is trading 66% below its all-time high. While this has caused some investors to wonder if bitcoin is dead, current prices may also represent a good opportunity to buy bitcoin at low prices.
In other words, bitcoin has already demonstrated in the past that its price can be significantly higher than it is now, which may give investors more confidence and willingness to buy BTC at these prices. Of course, there is no guarantee that BTC will return to its previous prices.
The second factor working in bitcoin’s favor is that the next bitcoin halving will occur in 2024. Specifically, current estimates suggest that the halving will occur in March 2024. Bitcoin halves have historically preceded rallies in the bitcoin markets, so getting BTC before the next halve could prove to be a good idea if this trend continues.
Furthermore, bitcoin remains the dominant player in the crypto-currency market, and its market capitalization is more than twice that of Ethereum, which is in second place.
While bitcoin may not have all the sophisticated features offered by some of the new competitors in the blockchain space, the bitcoin protocol has proven itself for more than a decade as an extremely robust and reliable digital currency. So if crypto-currencies have a future, bitcoin will likely continue to play a very important role in it.
How many bitcoins should I buy?
The answer to this question will depend on your financial situation and risk tolerance. As we’ve already explained, investing small amounts in bitcoins probably won’t change your life, but could still earn you profits. You can check out our Bitcoin profit calculator to see how much you could earn in different scenarios.
While bitcoin is less risky than many other crypto-currencies, it is still a high-risk investment when compared to traditional investments like stocks and bonds. In addition to the risk of price volatility, you should also consider the risks associated with storing bitcoin. Since bitcoin transactions are irreversible, you will have very little recourse if your BTC is stolen. Therefore, it is also important to learn how to secure your crypto. The best way to secure your crypto currency is to use a hardware crypto wallet.
Always consider your financial situation before making any investments and never invest more than you are willing to lose.
Which crypto should I invest $100 in?
If you’re looking for a chance to turn a relatively small amount like $100 into a large sum of money by investing in crypto, you’ll want to consider buying coins with a small market cap. However, you should keep in mind that this may be more like gambling than investing.
Generally, you will have to take higher risks to have the potential for higher rewards. This also applies to crypto-currencies. There are a number of risks associated with small market cap coins, and these risks are greater the lower the market cap:
- Low liquidity
- Projects are often in their infancy, so there is no guarantee that they will deliver.
- Many small-cap projects are poor quality overall.
- Higher risk of scams
Although there are many pitfalls, finding a winner among small market cap coins can be very lucrative. Nonetheless, you are more likely to lose money than make a profit if you buy small market cap coins.
If you are not comfortable with low market cap crypto-currencies, there are also mid-market cap crypto-currencies that could explode in the future.
The bottom line – There’s nothing wrong with making a small investment in bitcoin, but don’t expect life-changing gains.
Buying bitcoin in 2023 can definitely be worth it if you believe in the long-term success of BTC. Bitcoin is currently trading well below its all-time high, so you could say that current buyers are “buying the bottom.”
Bitcoin’s halving in 2024 could represent a turning point for the BTC markets and form the basis for a new bullish rally, and Bitcoin is still considered the best long-term crypto currency to invest in.
If you want to explore possible future scenarios for bitcoin, be sure to check out our bitcoin price prediction page.