Many people who are interested in crypto would like to get started with smaller amounts, which is completely reasonable given that cryptocurrencies are risky investments. The prices of cryptocurrencies can go through large fluctuations in a short period of time—a 30% price drop or gain in a single day is not unheard of in the cryptocurrency market.
If you’re looking to make your first steps into the world of crypto, the most obvious choice would be Bitcoin, the biggest cryptocurrency on the market. If you’re asking yourself “What if I invest $100 in Bitcoin today?”, we’ll provide you with some context of what you can expect if you invest $100 in Bitcoin in 2023.
If you invest $100 into Bitcoin today, don’t expect to make a fortune. However, you could still make some solid gains if your bet on Bitcoin pays off.
Can I invest $100 in Bitcoin today?
Yes, you can invest $100 into Bitcoin today. In fact, you can invest as little as you’d like, as you don’t have to buy 1 whole BTC. Most cryptocurrency exchanges will allow you to buy very small amounts of Bitcoin, even just a few dollars’ worth.
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How far can a $100 investment into Bitcoin go?
In the table below, you can see how an investment of $100 would have performed historically. For each year, we assume that the $100 was used to purchase BTC on January 1 and the investment was held until January 2023.
| Year | Bitcoin price on January 1 | BTC acquired with $100 investment | Investment value as of January 31, 2023 | ROI |
|---|---|---|---|---|
| 2011 | $0.30 | 333.33 BTC | $7.63 million | 76,300x |
| 2012 | $4.72 | 21.18 BTC | $485,000 | 4,850x |
| 2013 | $13.30 | 7.5 BTC | $171,700 | 1,717x |
| 2014 | $768 | 0.13 BTC | $2,970 | 29.7x |
| 2015 | $320 | 0.31 BTC | $7,100 | 71x |
| 2016 | $436 | 0.22 BTC | $5,040 | 70x |
| 2017 | $960 | 0.10 BTC | $2,290 | 22x |
| 2018 | $14,500 | 0.0068 BTC | $155 | 1.5x |
| 2019 | $3,800 | 0.026 BTC | $595 | 5.9x |
| 2020 | $7,300 | 0.013 BTC | $297 | 2.9x |
| 2021 | $29,200 | 0.0034 BTC | $77 | 0.77x |
| 2022 | $47,800 | 0.0020 BTC | $45 | 0.45x |
The days of a small investment into Bitcoin having the potential to transform into a fortune are almost certainly over. The market capitalization of Bitcoin is simply too large to achieve the massive multiples that were possible when buying Bitcoin in 2011, 2012 and 2013.
At the time of writing, Bitcoin has a market capitalization of $443 billion, even though it’s down 66% from its all-time high. Expecting a 100x or even a 10x from an asset that’s already this large probably isn’t the best idea.
At the time of writing, $100 will get you 0.0043 BTC. Let’s explore how a $100 investment in Bitcoin today would perform across different scenarios.
| Hypothetical performance of $100 invested into Bitcoin (0.0043 BTC) on January 31, 2023 | ||
| Bitcoin price | Value of investment | ROI |
| $68,770 (current all-time high) | $295 | 2.9x |
| $100,000 | $430 | 4.3x |
| $200,000 | $860 | 8.6x |
| $500,000 | $2,150 | 21.5x |
| $1 million | $4,300 | 43x |
Is it worth investing in Bitcoin in 2023?
Even though we’ve hopefully demonstrated that you shouldn’t expect to strike it rich with a $100 investment in Bitcoin, that doesn’t mean that Bitcoin doesn’t have anything going for it as a crypto investment in 2023.
The first factor that could indicate that now is a good time to buy Bitcoin is simply the fact that BTC is trading 66% down from its all-time high. While this has prompted some investors to ask if Bitcoin is dead, current prices can also represent a good opportunity to buy BTC on the cheap.
In other words, Bitcoin has already demonstrated in the past that its price can be substantially higher than it is now, which can give more confidence to investors and make them more willing to buy BTC at these prices. Of course, there is no guarantee that BTC will return to its previous prices.
The second factor going in favor of Bitcoin is that the next Bitcoin halving will happen in 2024. More specifically, the current estimates suggest that the halving will occur in March 2024. Bitcoin halvings have historically preceded rallies in the Bitcoin markets, so getting some BTC before the next halving happens could prove to be a good idea if this trend continues.
In addition, Bitcoin remains the dominant player in the cryptocurrency market, and its market capitalization is more than twice as large as the second-ranked Ethereum.
Even though Bitcoin doesn’t quite have all the fancy features that are offered by some of the newer contenders in the blockchain space, the Bitcoin protocol has been proving itself for well over a decade as a highly robust and reliable digital currency. So, if there is a future for cryptocurrency, Bitcoin will likely continue playing a very large role in it.
How much Bitcoin should I buy?
The answer to this question will depend on your financial situation and risk tolerance. As we’ve already covered, investing smaller amounts into Bitcoin likely won’t result in life-changing results, but could still deliver a profit. You can check out our Bitcoin profit calculator to see how much you would earn in different scenarios.
Even though Bitcoin is less risky than many other cryptocurrencies, it’s still a high-risk investment if we compare it to traditional investments like stocks and bonds. In addition to the risk of price volatility, you also need to consider the risks associated with Bitcoin storage. Since Bitcoin transactions are irreversible, you’ll have very little recourse if your BTC gets stolen. So, it’s also important to learn how to secure your crypto. The best way to keep your cryptocurrency safe is by using a hardware cryptocurrency 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 are looking for a chance to turn a relatively small amount such as $100 into a large amount of money through investing in crypto, you’ll have to consider buying coins with a small market capitalization. However, you should keep in mind that this can be more akin to gambling than investing.
Typically, you will have to take on higher risks to have the potential of higher rewards. This also applies to crypto. There’s a number of risks associated with low market cap coins, and these risks get more pronounced the lower in market cap you go:
- Low liquidity
- Projects are often in their early stages, so there’s no guarantee that they will deliver on their promises
- Many low market cap projects are of poor quality overall
- Higher risk of scams
While there are a lot of pitfalls, finding a winner among low market cap coins can be very lucrative. Still, you’re more likely to lose money than make a profit if you buy coins with low market capitalizations.
If you’re not comfortable with low market cap cryptocurrencies, there’s also some mid market cap cryptocurrencies 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 much lower than its all-time high, so we can say that current buyers are “buying the dip”.
The Bitcoin halving coming up in 2024 could represent a turning point for the BTC markets and provide the foundation for a new bullish rally, and Bitcoin is still considered as the best long-term cryptocurrency to invest in.
If you’re interested in exploring possible future scenarios for Bitcoin, make sure to check out our Bitcoin price prediction page.
Source: https://coincodex.com/article/23669/what-if-i-invest-100-in-bitcoin-today/