Q2 2024 Market Report This report will cover all the shifts that...
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The only consistent aspect of the wildly unpredictable crypto market is the existence of FOMO (Fear of Missing Out). When a coin or token experiences a significant increase in price, the community tends to divide into two groups: those who were able to profit from the price increase and those who missed out and wish they hadn’t.
Many people are influenced by FOMO to make snap decisions like investing in a shitcoin that may collapse shortly after they buy it. Bitcoin, nevertheless, is significantly more stable and has businesses and institutional investors supporting it, so it is considered to be less risky than other coins and tokens.
You may find yourself asking “what will happen if I invest $100 in Bitcoin today?” There are several possible scenarios. After bouts of price fluctuations, you could find yourself with the same amount that you initially invested. Alternatively, if you’re lucky enough, you might gain 100% within a few days. In the worst-case scenario, you may choose to sell your BTC at the wrong moment and waste your investment. Hence, how much you’ll lose or profit depends on several factors.
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Bitcoin (BTC) is a virtual currency that has grown significantly in prominence over the past ten years. It continues to be one of the most valuable coins on the market and is frequently regarded as a reliable store of value.
The price of Bitcoin has been on a hair-raising journey since its launch in 2009. In July 2010, Bitcoin’s price spiked to $0.09 during its early stages. Nonetheless, barely anyone knew of BTC, let alone thought about investing $100 in Bitcoin.
The next notable change in the price of Bitcoin came in 2017 when it first when it dropped below the $20,000 threshold after fluctuating between highs and lows. The price then experienced a crash in December 2017 and briefly dipped below $10,000.
The 2020 epidemic had a widespread impact, including Bitcoin, which saw a price drop below $7,000 in March. The price of Bitcoin then rose dramatically, reaching an all-time peak of $68,789 in November 2021. However, the price of Bitcoin fell once more as a result of the 2022 collapse that was sparked by Luna’s demise and further exacerbated by FTX’s insolvency. Its cost dropped over time, reaching a low of roughly $16,604 in December 2022.
In January 2023, the BTC price started rising, exceeding $20,000. As of March 2023, its value is close to $21,000.
In spite of this rollercoaster journey, both beginners and veteran crypto enthusiasts are still interested in investing in Bitcoin Some people might have wondered what would have happened if they had put $100 into Bitcoin at various times throughout its development. You may wonder whether you should invest in bitcoin now?
Bitcoin’s value experienced significant swings in 2022, hitting the highest recorded price of $47,445 in March and a record low of $16,441 by December. Do note that these figures don’t refer to the all-time high and all-time low, but the highest and lowest values for the year 2022. The value of an investor’s investment would have varied greatly based on when they bought their Bitcoin if they had chosen to dollar-cost average (DCA) their portfolio by buying a fixed amount at regular intervals throughout the year.
Fortunately, you can backtest this approach based on past performance using online tools. For instance, an individual who spent $100 on Bitcoin each month in 2022 would have spent $1,200 overall and would now have $1,187 worth of Bitcoin.
Now we get to the neverending question of “how much will I earn if I invest $100 in Bitcoin today?.” As already mentioned, a $100 investment in Bitcoin could increase or decrease in worth depending on how the market performs. Bitcoin’s price is extremely volatile and subject to large swings in a short amount of time. If the price of Bitcoin rises, you might get a profit on your investment. There’s also a chance it could fall, and you might lose all of your money.
It’s vital to keep in mind that there are no guarantees of returns and that investing in Bitcoin is not a surefire method to make money. It’s important to do market research and fully understand the potential risks before investing in Bitcoin or any other investment. Additionally, it’s recommended to only invest money that you can afford to lose and to see it as a long-term investment.
In addition to the fluctuation of prices, investing $100 (or any other amount) in Bitcoin comes with additional risks, such as conflicting predictions, concerns about a potential economic downturn, and regulatory uncertainty
While some industry professionals think that the price of Bitcoin has already peaked, others think that there is still space for it to fall. This places the power of option in the hands of the customer, who must decide who to believe before investing.
Due to the present geopolitical climate, everyone is concerned about the likelihood of an impending recession. Typically, the prices of the assets that are comparatively newer suffer the most when a recession hits. As a result, Bitcoin may be presently a risky short-term investment, despite its current increase in price.
The majority of governments around the globe have opposed the concept of cryptocurrencies., Some nations, including Turkey, Egypt, and China, have outlawed using them for everyday transactions. These occurrences raise questions about whether Bitcoin will gain broader acceptance in the future.
Last but not least, a somewhat bitter truth is that investing $100 in BTC will almost certainly only yield lower returns because it is a small starting point. Therefore, for those wondering how much $100 of Bitcoin would be worth today, the answer is not that much. By investing that amount of money in BTC, you are only “dipping your toe in the water.”
A Bitcoin case study has revealed that BTC increased a portfolio’s returns during particular times, but it also displayed a high level of volatility.
From August 1, 2010, to August 31, 2022, BTC generated an average yearly return of 186.7%. It’s worth noting that a considerable part of these earnings was gained in the early days of Bitcoin trading when BTC saw even more volatility.
The introduction of the bitcoin futures market in 2018 improved pricing efficiency and attracted new market players. Since then, Bitcoin has produced yearly profits that are on average about 8.8%.
It’s critical to remember that prior success does not guarantee future success. Bitcoin is a new commodity with a high level of volatility. When investing in Bitcoin, you should bear in mind that, as evidenced by year-to-date performance, its value has the potential to both substantially rise or decline in the future.
The advantages and disadvantages of Bitcoin are numerous. Still, before you do decide whether investing in Bitcoin is your cup of tea, there are a few things to take into consideration, and consequently, strategies to follow.
Diversification is a key idea that shrewd investors should follow. That might entail expanding your portfolio to include Bitcoin and other cryptocurrencies. Before making a bigger, riskier investment, investing $100 in Bitcoin may be a good way to dip your toe into the cryptocurrency waters.
Long-term investment can be a bit tricky because of market volatility. On the other hand, a short-term investment can be a fantastic way to generate some quick profits.
Whichever type of investment you prefer, it can’t be stressed enough that the decision to buy Bitcoin should ultimately be founded on your own research and financial situation.
For seasoned investors, investing in Bitcoin can be profitable. Therefore, it’s not a question of “can I invest $100 in Bitcoin but of “what do I need to do to invest safely.” Here are some precautions you should take to safeguard yourself against Bitcoin investment-related deception and scams.
First and foremost, do the research. Make sure that you have thoroughly studied the business or person offering the investment opportunity before actually investing. Examine the website, read online evaluations, and keep an eye out for any warning signs that might point to a scam.
Second, always invest the amount of money you can afford to lose.
Third, use crypto wallets that are secure to store your coins and tokens. This will shield them from hackers who might attempt to steal your money.
Fourth, watch out for guarantees of profits. Be extremely cautious if someone guarantees returns on a transaction involving Bitcoin or any other cryptocurrency because this could be a sign of a scam or other form of fraud.
To reduce the risk of investing in Bitcoin or any other cryptocurrency, it’s recommended to diversify your portfolio, i.e., to invest in different cryptocurrencies. Lastly, when trading Bitcoin, it is a good idea to set up stop-loss orders so that you can reduce your losses if the price abruptly declines. To remain on top of the game, try to follow news about Bitcoin and other cryptocurrencies so you can decide when and how much to invest knowing all the facts.
Should you need any help with your crypto investments, don’t hesitate to reach out to us at Veli.io
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