In the world of crypto, speculation is simply part of the game.
Everyone in legacy finance media has an opinion on where the price of Bitcoin is headed, along with other trending cryptocurrencies that show promise or exciting price action.
Social media is constantly buzzing with bold predictions and plenty of hype to go around. Just take one step into crypto Twitter to see what we mean – it’s like the wild west!
But rarely do we take the time to step back and ask a simple question that everyone can understand and visualize clearly.
Here’s a thought experiment for everyone: if you invested $100 in Bitcoin today, what are the possible outcomes moving forward into 2022 and beyond?
A lot can happen in a short time with crypto, so let’s explore all the possibilities and offer some insight for first-time investors.
Can You Invest $100 in Bitcoin?
Before we talk about the outcomes of a $100 Bitcoin investment, we should figure out whether it’s possible to invest this small amount and how.
The good news is that investors can get into Bitcoin no matter how much – or how little – they want to contribute. People buy $100 worth of Bitcoin all the time, and it’s made easier by crypto exchanges that facilitate quick and secure transactions.
Why Should You Invest $100 in Bitcoin?
There are plenty of reasons to invest in Bitcoin, and the main arguments have been made countless times before.
It’s the original cryptocurrency with solid fundamentals and a vast community of support from institutions and individuals. Not to mention, the value of Bitcoin has increased dramatically in less than five years, going from just a few thousand dollars to highs of nearly $70k in 2021.
But why do we suggest that first-timers invest $100 before going any further? Here are the reasons why.
Smart Starting Point
Buying $100 in Bitcoin is a great place to start because it’s easy to track the price of Bitcoin as it relates to this initial investment.
For example, if the price of BTC increases 10% from the time of purchase, you can see your investment rise to a value of $110 in your portfolio.
For young people or first-time investors, this makes tracking the progress of your investment that much easier to comprehend and sets the stage for what the investing experience is like.
Getting into the Game
Maybe you’ve had your eye on Bitcoin for a few years, or you’re interested in crypto or blockchain technology more generally.
Investing $100 in Bitcoin is the perfect way to get into the crypto game without spending a huge amount of money or taking on an uncomfortable amount of risk.
Managing expectations and emotions are a major part of the investing experience as a whole, and starting with this small investment lets you ease into the process in a manageable way.
Ongoing Contributions
While some investors will only want to put $100 into Bitcoin, others think long-term and plan to make more frequent contributions at this dollar amount.
Centralized exchanges make it easy to add $100 in Bitcoin through automated systems, meaning that you can increase your stake in Bitcoin by $100 every week, month, or any block of time that fits your strategy.
By making small contributions on your schedule, you can get broader exposure to Bitcoin without manually making individual investments every time.
Whether your goal is to diversify your investments or become the world’s biggest Bitcoin whale, this is a wise strategy to pursue.
Predictions for BTC Price in 2022
There are many reasons to start with a $100 investment in Bitcoin. But what could happen to your investment in 2022 and beyond? Here’s what analysts are saying about the future of Bitcoin in the short and long term.
Breaking All-Time Highs
Bitcoin nearly broke the $70,000 mark in April of 2021, and while the beginning of 2022 has seen drops down to $40k, many speculate that all-time highs are on the horizon soon enough.
If you bought Bitcoin at the beginning of 2022 and it does reach all-time highs, that means the value of your investment could nearly double.
Eyes on 100k
Bitcoin bulls have been talking about $100,000 Bitcoins for years. While it seems a bit far-fetched, let’s keep in mind that Bitcoin was under $10,000 at the start of 2021, making massive gains to all-time highs in April of that same year – 10x gains in nearly three months!
With that in mind, is it so outlandish to predict a 2.5x increase in the value of Bitcoin in 2022 after it put up record numbers in the previous 12 months?
It may seem optimistic that the 100k mark is within reach in 2022, but when you run the numbers and zoom out for context in the crypto market at large, it seems much more realistic.
Factors to Watch
Everyone is an armchair speculator in the crypto scene, but if you’ve got $100 or more in Bitcoin, you’ve finally got some skin in the game.
This means that you’ll need to keep your eyes on a few key factors that could impact the price of Bitcoin and alter the value of your investments as a result.
For starters, always keep an eye on crypto prices and be on the lookout for headlines that are relevant to your investments. Follow influencers on Twitter, subscribe to channels on YouTube, stay up to date on podcasts, and sign up for email newsletters.
Adoption and utility appear to be the primary driver of price in the world of crypto, so always ask these key questions: are people using this product, and what exactly are they achieving by doing so?
Since Bitcoin is the most talked-about crypto on the market, there will be no shortage of news and data to sift through as you proceed on your investment journey.
Possible Risks to Crypto Investing
There are always risks that come with investing, even if you just put $100 towards Bitcoin.
Heightened Volatility
Volatility in the crypto markets was unprecedented in 2021, and there’s plenty of reason to believe that 2022 will bring more of the same.
Your $100 investment could multiply ten times over, remain around the same value, or even decline to a much lower number. This variability is the risk that all crypto investors make when they enter the marketplace, and you must be ready for any scenario to unfold.
Exchanges, Fees, and Transactions
Buying and holding Bitcoin is one thing, but you might rack up some costly fees over time if you constantly trade and use BTC.
Long-time crypto users recognize that using BTC – and other cryptos like ETH – can become rather expensive, and trading has costs of its own, as well.
This is why we recommend starting with a low-stakes investment of $100, so you can learn the ropes before getting more involved.
The Smart Way to Accumulate Bitcoin
Investors acquire Bitcoin in many different ways, from centralized exchanges and P2P networks to eco-friendly mining, trading, and even accepting payment in BTC.
By putting down just $100, you can officially set foot into the crypto marketplace and be on the front lines of an industry with a very bright future.
Sources:
Invest 100 Into Bitcoin | Retirement Investments
Recent Comments