Got $100? The Smartest Way to Invest in Cryptocurrency Right Now
Ready to Dive into Crypto? Here’s How to Start with Just $100
The world of cryptocurrency is buzzing with excitement, but for a newcomer, it can feel like an exclusive club with a very high price of admission. You see Bitcoin (BTC) trading for tens of thousands of dollars and Ethereum (ETH) in the thousands, and you might think, “What can I possibly do with just $100?”
It’s a valid question. On one hand, social media is filled with stories of people turning small sums into fortunes by betting on obscure “meme coins.” On the other hand, the sheer number of options—over 20,000 different cryptocurrencies—is overwhelming. So, what’s the smartest move? Instead of gambling your funds on speculative longshots, there’s a strategic and surprisingly simple way to get started. Let’s break down the best way to put your $100 to work in the crypto market.
Why Bitcoin is Still Your Best First Step
Before exploring specific investment methods, it’s crucial to decide what to invest in. While thousands of cryptocurrencies exist, one reigns supreme: Bitcoin. It accounts for over half of the entire crypto market’s value for several key reasons:
- The Market Leader: Bitcoin is the original cryptocurrency and the benchmark that all others follow. When Bitcoin’s price moves, the rest of the market tends to follow suit.
- Proven Track Record: For much of the last decade, Bitcoin has been one of the world’s top-performing assets. Its longevity and resilience have earned it the nickname “digital gold.”
- Institutional Adoption: Major corporations and investment firms are allocating billions to Bitcoin, treating it as a legitimate asset class for their portfolios. This widespread adoption adds a layer of stability and credibility.
For a beginner, starting with the market leader is a sound and prudent strategy. It’s the most established and understood asset in the space.
Option 1: Buying Bitcoin Directly on an Exchange
The traditional way to buy Bitcoin is through a cryptocurrency exchange like Coinbase, Kraken, or Binance. The process is straightforward: you create an account, deposit your $100, and purchase Bitcoin.
A common misconception is that you need to buy a whole Bitcoin. That’s not true. You can buy a fraction of one. With $100, you would own a small piece of a Bitcoin, and its value would grow or shrink along with the market price.
- Pros: You own the underlying asset directly. This gives you the option to move it to a personal digital wallet for self-custody.
- Cons for Beginners: Self-custody comes with a steep learning curve. Managing private keys and securing a wallet can be complex and risky. If you lose your keys, your funds are gone forever.
Option 2: The Smarter, Simpler Way — Spot Bitcoin ETFs
In early 2024, a game-changing product arrived for investors: the Spot Bitcoin ETF (Exchange-Traded Fund). Think of it as a stock that holds only one thing: actual Bitcoin. When you buy a share of a Bitcoin ETF, you are buying a share in a fund that owns Bitcoin on your behalf.
This method offers the easiest, most convenient, and lowest-cost way for a beginner to get exposure to Bitcoin’s price movements without the technical headaches. For less than $100, you can easily buy one or more shares of the most popular Bitcoin ETFs.
Why Bitcoin ETFs are a Game-Changer for New Investors
1. Unmatched Simplicity: You can buy a Bitcoin ETF through a standard brokerage account—like Fidelity, Charles Schwab, or Robinhood—just as you would buy a share of Apple or Amazon. No need to sign up for a new crypto exchange or learn about digital wallets.
2. Professional-Grade Security: The biggest hurdle for many new crypto investors is security. With an ETF, the fund’s custodian (massive, reputable institutions like BlackRock and Fidelity) handles the complex and high-stakes task of securely storing the Bitcoin. This eliminates the risk of you losing your funds through a personal security mistake.
3. Low Fees: Competition between ETF providers is fierce, which has driven management fees (known as expense ratios) to ultra-low levels, often around 0.20% – 0.25% per year. For a $100 investment, that’s just 25 cents a year.
4. Perfect Price Tracking: These ETFs are designed to track the price of Bitcoin on a 1:1 basis. If Bitcoin’s price goes up 10%, the value of your ETF shares will also go up 10% (minus the tiny expense ratio).
Which Bitcoin ETF Should You Buy?
You’ll see several options with different ticker symbols and share prices, such as:
- IBIT (iShares Bitcoin Trust by BlackRock)
- FBTC (Fidelity Wise Origin Bitcoin Fund)
- ARKB (Ark 21Shares Bitcoin ETF)
- BITB (Bitwise Bitcoin ETF)
Don’t get caught up in the different share prices. Whether you buy two shares of an ETF trading at $50 or one share of an ETF trading at $100, you still have $100 of exposure to Bitcoin. Since their fees are all nearly identical, the choice largely comes down to personal preference. The most important step is simply choosing one and getting started.
What About the “100x Altcoin” Dream?
It’s impossible to ignore the hype around finding the next small cryptocurrency that explodes in value. Social media is full of promises to turn $100 into $100,000. While these incredible returns do happen, they are the rare exception, not the rule.
For every coin that delivers a 100x return, thousands of others fade into obscurity, taking investors’ money with them. For someone starting with just $100, chasing these high-risk gambles is the fastest way to end up with $0. The
Your $100 Action Plan
Ready to make your first crypto investment? Here’s a simple plan:
- Choose Your Venue: For simplicity and security, we recommend using a traditional brokerage account to buy a Bitcoin ETF.
- Fund Your Account: If you don’t already have one, open an account with a major broker and deposit your $100.
- Select Your ETF: Search for a popular Bitcoin ETF ticker like IBIT or FBTC.
- Place Your Order: Buy as many shares as you can for around $100.
That’s it. You now have a position in the digital asset market. By investing in a Bitcoin ETF, you’ve made a smart, calculated entry into the world of cryptocurrency. It’s not a lottery ticket, but a strategic first step on a potentially rewarding long-term investment journey.
