Best cryptocurrency exchange to invest $100 in Bitcoin - Coinbase
A $100 investment in Bitcoin today certainly will not make you rich in the foreseeable future. But according to Traders Union BTC price can reach $241771.21 in 2033. So starting small now and following a DCA strategy over the long-term may be beneficial.
Bitcoin has been one of the hottest investments of the past decade, with prices skyrocketing from under $1 in 2010 to nearly $69,000 per bitcoin in 2021. However, 2022 has seen cryptocurrencies plunge, with bitcoin down over 70% from its peak. This extreme volatility leaves many wondering if now is the time to invest or stay away from this highly speculative asset.
This article examines if putting $100 into bitcoin today makes sense for the average investor. We will analyze key factors like bitcoin's historical price trends and volatility, the outlook for wider adoption and regulation, and whether its deflationary nature means it could be a long-term store of value. By weighing the potential upside against the sizable risk, you'll get a better sense of whether a small $100 investment could make sense as part of a diversified portfolio.
With cryptocurrency promotion so pervasive these days, it's important to tune out the hype and objectively assess bitcoin merits and weaknesses. This analysis aims to provide the cold, hard facts so you can determine if a 3-figure investment is likely to pay off or end up as a losing bet on what some call digital gold.
Is Bitcoin safe to invest in?
While the blockchain itself is secure, exchanges and individual wallets can be vulnerable to hacking. Enable 2-factor authentication for added security.
Can I make recurring $100 investments into Bitcoin?
Yes, many exchanges and platforms offer recurring buy options. This "dollar-cost averaging" strategy reduces risk over time.
How easy is it to set up and manage a Bitcoin investment?
It only takes minutes to set up a beginner-friendly account at a crypto exchange or broker.
Will more merchants accept Bitcoin payments in the future?
As adoption grows, Bitcoin is likely to become a payment method at more online and even brick-and-mortar retailers, expanding usefulness.
Yes, Bitcoin is a good investment today. With an ever-increasing demand for blockchain technologies, the cryptocurrency market has seen tremendous growth in the past few years. In fact, since its inception in 2009, Bitcoin's value has grown exponentially.
This makes it one of the best-performing assets on the market today and a great long-term investment opportunity with immense potential rewards. Furthermore, given its decentralized nature and limited supply, Bitcoin has proven to be relatively immune to traditional economic forces such as inflation or manipulation by central banks that could otherwise erode gains from other investments like stocks or bonds.
The cryptocurrency market is in a protracted correction phase after the rise in the price of bitcoin above $60,000, however, historically, bitcoin has shown high growth rates. If you invest according to the rule of opposite opinion, then indeed Bitcoin can be a great long-term investment.
| Bitcoin Price 1y Return | 50.06% |
| Bitcoin Price 1m Return | 11.71% |
Bitcoin is currently trading at a discount of nearly 50% from its all-time high. While this fall might seem like a crash for majority of assets classes, it is just another routine correction when it comes to cryptocurrencies. A general rule of thumb investors adhere to is the buying-the-dip methodology where an asset is accumulated during its correction. So given the distance from the peak for Bitcoin’s price currently, experts believe that its price has higher chances to find a support somewhere around the current levels, representing a buying opportunity.
When Bitcoin was first launched, all market participants were highly skeptical about its adoption. But slowly and gradually, people are now accepting the innovation and utilizing it for their own operational requirements. In fact, many investment firms and funds now have a portfolio dedicated primarily to cryptocurrencies, majority of which have Bitcoin as the most heavily weighted constituent. This adds a lot of attention and reliability to the crypto’s name as retail investors generally act upon the advisory of these firms.
The Bitcoin network can process nearly 4.6 transactions per second. While this might be slower compared to the likes of Visa, it does get ahead when it comes to the transaction costs involved. As per blockchain.com, the average fees per transaction (in USD) for Bitcoin currently is approximately $1.43, while the same for Visa can go as high as 3.55% of the transaction amount + a $0.10 flat fee. This has led to a considerable migration of users to the crypto platform for transaction facilitation.
Bitcoin (BTC) price prediction for 1 day and 1 weekThe maximum supply of Bitcoin is fixed at 21 million coins. This means that beyond this point, Bitcoin will provide store value given its limited supply. To understand this better, take the example of gold, which obviously has a limited supply available. In order to store the value of fiat money, investors generally invest their money in gold, which in turn preserves value against factors like inflation. Experts believe that Bitcoin as an investment borrows some of its behavior from gold, having similar characteristics like limited supply and store value, and so many also call it “digital gold.”
Let’s first understand what does the halving cycle mean. In order to mine Bitcoin, the miners solve complex computer equations. For solving such equations successfully, they are rewarded with blocks of Bitcoin, and each block contains a fixed amount of bitcoin (6.25 BTC per block currently.) For every 210,000th block mined, the number of bitcoins awarded per block gets halved. So by the next halving cycle (predicted to take place in 2024), miners would only get 3.25 BTC per block, reducing the supply of Bitcoin in the market. And as the basic laws of economics suggest, lower supply, with even stable demand (if not higher,) leads to a higher price.
As with any other asset, analysts believe that the price of Bitcoin too moves in cycles. It is said that every Bitcoin bull run is followed by a crypto winter, where the price of the currency falls anywhere between 60-80%, but not significantly breaching the previous cycle high. The same cycle has taken place currently with Bitcoin sustaining the sub-$17,000 levels and bouncing back from there. If this theory is deemed to be correct, then the next bull run might not be far.
While this might sound ironic, Bitcoin is actually stable relative to the other cryptocurrencies (excluding the currency-pegged stable-coins.) And as it is also the primary crypto, experts often see it as the benchmark for comparison for alternative coins. This adds a lot of trust and following behind its name.
Should I Buy Bitcoin (BTC) 2024? Top Pros and ConsThe governments of countries around the world have majorly been against the idea of cryptocurrencies. In fact, countries like China, Egypt, and Turkey have even banned their use for routine transactions. These events lead to uncertainty regarding the future acceptance of Bitcoin.
The current geopolitical environment has everyone worried about the possibilities of an upcoming recession. And generally, when recession strikes, the assets which are relatively newer take the biggest hit in the prices. This makes Bitcoin a risky short-term bet currently.
While many analysts believe that the price of Bitcoin has bottomed out, some still have the notion that there’s further downside to it. This passes the baton on to the investor to decide on who they want to believe in, and then take an informed decision.
When it comes to investing in Bitcoin, the amount you decide to invest is entirely up to you and depends on your personal risk appetite. It’s important to remember that cryptocurrencies are volatile and can experience significant price swings over short periods of time. Therefore, when deciding how much you should invest in Bitcoin, consider whether or not you have a high tolerance for risk and if this asset class fits into your overall investment strategy. Furthermore, because cryptocurrency markets are highly unpredictable; we advise investors only allocate a small portion of their total portfolio towards cryptocurrency investments such as Bitcoin.
Therefore, the optimal size of your Bitcoin investment depends on your financial capabilities. TU experts recommend investing more than 10% of the total long-term investment capital in one cryptocurrency.
Will Bitcoin Go Back Up? Is Bitcoin Dead?It would be reasonable to determine the amount that you can invest in cryptocurrencies over a certain period. You can invest, for example, $20, $100 or $1000 per month, depending on your capabilities. The main rule is not to invest more in cryptocurrency than you can afford to risk. With the rapid growth of Bitcoin, it is possible to start seeing returns on your investment quickly if you know what you are doing. However, as with any form of investing, there are risks involved and it is important for investors to do their research before committing funds into the market. Furthermore, due to its volatile nature and limited liquidity, small investments may not be sufficient enough for an investor to build a diversified portfolio and could potentially lead them down a path of riskier trades that could result in losses.
Bearish and sideways cycles in cryptocurrencies usually last 2-3 years. If you are buying in a bear market, then you need to be patient. The market may rise sooner or later. Usually, It is worth selling when the market is euphoric.
Therefore, in terms of holding period, there is no definitive answer as it largely depends on one's individual situation and objectives. Long-term holders may benefit from increased liquidity in the form of buy/sell orders since more people will be interested in obtaining BTC over time due to its limited supply while shorter term traders could potentially capitalize on quick market movements by buying low and selling high with enough frequency.
Ultimately though, it all boils down to what type of investor you are – whether looking for capital appreciation or income generation through regular trading activity – which will inform your decision regarding how long you should hold onto Bitcoin investments for maximum returns potential.
Should I Sell My Bitcoin (BTC) Now?We have compiled Bitcoin long term price predictions. These predictions can be useful, but it is worth remembering that the predictions are often inaccurate.
The table below shows the forecasts as of the end of each month in 2024, according to TU analysts price prediction.
| Month | Minimum Price | Maximum Price | Average Price |
|---|---|---|---|
| August 2023 | $38185.38 | $46671.02 | $42428.2 |
| September 2023 | $40041.62 | $48939.76 | $44490.69 |
| October 2023 | $42163.03 | $51532.59 | $46847.81 |
| November 2023 | $43488.91 | $53153.11 | $48321.01 |
| December 2023 | $46405.84 | $56718.26 | $51562.05 |
| Year | Price in the middle of the year | Price at the end of the year |
|---|---|---|
| 2024 | $38671.54 | $51562.05 |
| 2024 | $64084.27 | $85445.69 |
| 2025 | $72923.48 | $97231.3 |
| 2026 | $110490.11 | $147320.15 |
| 2027 | $176784.18 | $235712.24 |
| 2028 | $218770.43 | $291693.9 |
| 2029 | $287274.29 | $383032.39 |
| 2030 | $372572.66 | $496763.55 |
| 2031 | $430911.44 | $574548.59 |
| 2032 | $514883.93 | $686511.9 |
| 2033 | $594436.81 | $792582.41 |
| 2034 | $640842.65 | $854456.87 |
Here are a few pointers to help you navigate the risky waters of Bitcoin acquisition.
Before investing in Bitcoin, it is critical to undertake extensive study and analysis. Keep up with the latest Bitcoin news, Bitcoin prices, and regulatory changes. Understand the variables influencing the price of Bitcoin, including global economic conditions, government restrictions, and technological breakthroughs.
Dollar-Cost Averaging (DCA): Dollar-cost averaging is a method in which you invest a predetermined amount of money at regular periods, regardless of the price of Bitcoin. This method decreases the influence of short-term price swings and the risk of making poor investment decisions based on market volatility.
Technical analysis is the process of predicting future price movements by examining historical price charts, patterns, and indications. Moving averages, the relative strength index (RSI), and Bollinger Bands are a few basic analysis techniques and indicators that novice traders can use to find suitable entry points for buying Bitcoin.
Fundamental analysis is the process of determining an asset's intrinsic value based on its fundamental factors. This includes evaluating issues such as acceptance, regulatory developments, and institutional interest in Bitcoin.
Support and resistance levels are price levels where Bitcoin typically finds buying or selling pressure. Support levels operate as a floor, preventing further price declines, while resistance levels act as a ceiling, preventing further price rises. Support and resistance levels can be used by inexperienced traders to identify probable entry and exit opportunities for their Bitcoin investments.
When it comes to investing in Bitcoin, the decision is ultimately up to the individual and their personal risk appetite. Investors must remember that cryptocurrencies are volatile assets that can experience significant price swings over short periods of time so caution should be taken when deciding how much one should invest in digital currencies such as Bitcoin.
We recommend conducting thorough research before investing in order to make an informed decision about how long you should keep your Bitcoin holdings for maximum returns potential while ensuring that you understand all associated risks beforehand.
The following tools and instruments were used for making the prediction:
Basic instruments of technical analysis. The forecast relies on basic technical indicators. The analysis was performed mostly on medium and long-term time frames for more accurate results.
Statistical tools that allow experts to evaluate the probability of an event that may influence the prices of cryptocurrencies.
Individual features of a cryptocurrency startup and its competitiveness: number of tokens in free circulation, restriction of emission, potential usefulness of the startup for the society, roadmap and development plans of the startup, potential vulnerability of the startup’s blockchain, examples of hacks, failures in the entire history of cryptocurrency existence, capitalization dynamics compared to key competitors, share of major coin holders and other subjective factors.
Note:
This price prediction is based on current information and historical data. Strong fundamental factors capable of radically changing the overall situation in the cryptocurrency markets, impacting the prices of certain cryptocurrencies and subsequently changing the price trend, may appear in the future. The price predictions are updated regularly based on the latest data.
This article is created for informational purposes only and does not constitute investment advice. Be aware of the high volatility of cryptocurrencies and consider these risks when making investment decisions.
The launch of bitcoin exchange-traded funds in the US has changed the market dynamics in important ways. Investors can now get fractional exposure to bitcoin through cheap, liquid, exchange-traded vehicles, reducing worries about trading costs and the ability to exit positions quickly. So, investing $100 in bitcoin, or making regular dollar-cost averaging investments, is now cheaper and safer. The ETFs will also be available through retirement accounts like IRAs, expanding the retail audience.
Bitcoin bulls like to argue that the ETFs will draw in big institutional investors whose tough risk and compliance departments previously kept them out. This is unlikely, since risk managers look askance at assets that have swung from $9,000 to $60,000 to $16,000 to $60,000 over the last five years. For big institutions with serious asset-liability management challenges, that sort of volatility cannot be tolerated.
But the ETFs are trending up on the back of retail interest. That, and not a tsunami of institutional interest, could be the real key to their prospects.
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.
