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Did you know that you can invest in bitcoin with just 100$ in 2021?

How do you invest $100 in Bitcoin?

“Oh, that’s easy.”

Many people will say that $100 is a relatively small sum to invest and you’ll get nothing. Let me tell you the truth: yes, you will hardly become a millionaire because of the profits from $100. On the other hand, you’ll get much more, something which costs thousands of dollars. Experience. I would say that your $100 would be a kind of fee to enter the cryptocurrency.

You’d think so but then, we’re both here.

You probably realize this could just as easily be a guide for investing $1000 in Bitcoin, or even a million dollars. That being said, $100 is a good entry point for crypto investors, especially if you’re new to the game.

With the right strategy, your $100 crypto investment can definitely work for you. But rule number one: avoid fees like the plague. Imagine paying a $5 commission to buy $100 worth of bitcoin through an exchange, then that’s 5% lost to fees. Bad idea. $5 is probably insignificant with larger capital—say at $10,00—but with your $100 investment, you need to keep your fees to the minimum.

Usually, the question was “How do you invest in Bitcoin?” but here it’s “How do you invest $100 in Bitcoin?” Two questions with different answers… so, I’ll skip past the general investing advice and give you an answer tailored for $100.

To invest in Bitcoin, you simply have to choose a trusted cryptocurrency exchange that trades Bitcoin and buy $100 worth of Bitcoin there. Once you’ve bought the bitcoins, transfer it from the exchange to a personal wallet. I’d recommend a hardware wallet such as Trezor or Ledger Nano S; almost zero chance of hacking.

Since $100 is a small investment, I’d advise you to HODL your Bitcoin for a while (nothing less than a year) and cash out when the market is at a high. Whatever you do, do not trade. If you don’t know what you’re doing, you’ll end up losing your crypto due to the high volatility of bitcoin.

According to a BuyShares report, from June 26, 2015 to June 26, 2020, Bitcoin’s ROI was about 70 times higher compared to the FTSE 100, NASDAQ, Nikkei, S&P 500 and Dow Jones indices.

“During the period under review, Bitcoin’s ROI stood at 3,456.98% where in June 2015, the price of Bitcoin was $257.06 and by June 26th this year, the price rose to $9,143.58,” analyst Justinas Baltrusaitis reported. “On the other hand, the average ROI for the highlighted indices was 49.27%.”

So, if you’d invested exactly $100 in Bitcoin back in 2015 (which is fairly recent), you’d have $3400 by June 2020. This is easily a lot of money, and $100 is considered a small investment on average.

Bitcoin ROI for next 5 years
Bitcoin is going to rise to 100 to 300k by the end of 2021

Source: BuyShares

Above all, pick a trusted exchange with multiple payment methods, lightning-fast withdrawals and strong security. However, there are hundreds of exchanges around, and even with the ‘filtering’, you still have a lot to choose from.

Since you can’t register on every exchange out there, Coinbase, OKEx and Binance are some solid picks.

Voila! You’ve invested your $100 in Bitcoin. Here’s a recap of what I’ve said so far:

  1. Invest with what you can afford to lose
  2. Play the long game (i.e., HODL), and you won’t be disappointed
  3. Store your bitcoins in a hardware wallet
  4. Crypto scams are common, so watch out for any suspicious activity
  5. Finally, crypto is fun, so have fun while you’re at it!

Before you do, check the recent price history with your broker (over the last 2–4 weeks should be enough). If bitcoin is at a new high, resist the urge. The price is likely to “pull back” soon before (probably) going up higher. If the price has recently dropped but has since stabilized below a recent high, you’re probably getting a much better deal and will get more bitcoin for your dollar as a reward for your patience and timing.

Voila! You’re now invested in Bitcoin. It’s likely that your broker is holding the bitcoin for you, which you can keep with your broker, transfer to your private wallet, spend with someone who accepts Bitcoin for payment, or do whatever you want with.

You could also buy $100 in bitcoin from someone else who’s willing to sell you their bitcoin in a private sale, where you give them the money and they send the bitcoin to your wallet. You’ll need to set up beforehand (they’re free).

 

Learn more :

Why bitcoin exploded this hard ?

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