Luis Pazos 
Bitcoin is the first and most well-known digital currency. It isn’t backed by any government, making it different from currencies like the US dollar. This uniqueness brings certain risks and rewards, depending on your investment goals. If you’re new to cryptocurrency, you might wonder, “Can I start with just $100 in Bitcoin?” Absolutely! But there’s some important info you should know first.
Bitcoin is a digital currency that lives online, much like the money in your bank account when you use direct deposit. Introduced in 2009 by an anonymous creator known as Satoshi Nakamoto, Bitcoin operates without any central authority. Instead, it’s part of a decentralized network of computers called cryptocurrency miners. These miners use blockchain technology, a public database of all transactions that’s tough to tamper with.
Anyone with internet access can get involved in Bitcoin. You can buy and store Bitcoin using a digital wallet, like those from Ledger or MetaMask, or through a major exchange like Coinbase or Gemini.
So, what’s Bitcoin worth? Its value goes up and down a lot. Starting at just a few cents in 2009, it once soared to around $60,000 per coin. As of now, it’s about $30,000. This volatility means some early investors made big money, but others warn it could drop to zero.
If you’re a beginner, it might be better to stick with the stock market first, given its long history and clearer valuation methods. But if you have some investing experience, you can start buying Bitcoin easily through major cryptocurrency exchanges, just like buying stocks.
Investing in Bitcoin can be risky. You might see huge returns or lose all your money. Unlike traditional currencies, there’s no big entity backing Bitcoin’s value. So, only invest what you can afford to lose.
You don’t need much money to start. Bitcoin can be broken down into smaller pieces, so you can begin with just a few dollars. For example, if you had $1,000 in investments, making Bitcoin just 5% of that portfolio is simple through most exchanges.
If you had invested $100 in Bitcoin back in July 2013, you’d have owned 1.47 BTC, which at its peak value would have been worth over $100,000. Even now, it’s worth almost $40,000—a fantastic return.
For buying Bitcoin, centralized exchanges like Coinbase, Gemini, Binance.US, Kraken, Robinhood, Webull, or Public are good options. Fees can vary, with some platforms offering lower trading fees and even free trades.
Mining Bitcoin, where computers compete to process transactions and earn new coins, has become very hard for solo miners due to the intense competition. Most people find it easier to buy Bitcoin through an exchange instead.
When it comes to safety, make sure you use strong, unique passwords for your accounts. Cryptocurrency isn’t insured like bank accounts, so if your account is hacked, you might lose everything.
Bitcoin isn’t the only cryptocurrency out there. Ethereum, Dogecoin, and others have also become popular. However, Bitcoin and Ethereum are considered the most stable.
Deciding if Bitcoin is right for you involves understanding its risks and potential rewards. Diversifying your investments is a smart approach. If you see value in Bitcoin and have done your research, starting with a small investment like $100 can help you get a feel for the market without taking on too much risk.
In conclusion, investing $100 in Bitcoin could yield significant returns or losses due to its volatility. Its decentralized and scarce nature sets it apart from traditional currencies, creating both passionate supporters and strong critics. It’s crucial to do your research and only invest what you can afford to lose. Starting small and diversifying your investments can help you navigate the crypto world while managing risks.
