Experts believe Bitcoin's value will continue to rise, with some predicting it could reach $1.48 million by 2030. Investors can purchase Bitcoin directly from virtual currency exchanges, online brokerages, Bitcoin ETFs, etc. Financial experts advise keeping your investments in cryptocurrencies to a small percentage. Diverse portfolio.
Now that Bitcoin has surpassed $100,000, what does that mean for the average investor? Is there still time to join Bitcoin's rise or are outsiders missing out on the party? Is it?
Bitcoin, considered the first successful cryptocurrency, had a value of zero when it was launched in 2009, according to Investopedia. The digital currency doubled in value throughout 2024, hitting an all-time high nearing $100,000 last month, and surpassed that milestone for the first time on Thursday.
Expectations that the second Trump administration will create a favorable regulatory environment for Bitcoin and other cryptocurrencies are fueling the rise. The latest sign is Trump's selection of crypto-friendly investor and former SEC commissioner Paul Atkins to head the Securities and Exchange Commission.
All of this momentum is probably making investors wonder if it's time to buy Bitcoin.
Nigel Green, CEO of global financial advisory firm DeVere Group, told USA TODAY in an email exchange that “the current impressive performance has inevitably led to renewed interest and a degree of FOMO. “It will attract fear of missing out.”
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Whether you've invested in Bitcoin yet or not, “Bitcoin is now without a doubt a mainstream and legitimate asset class in the world, as evidenced by growing interest from institutional investors.” said Mr. Green.
And you can invest, even if it's just a few dollars. Here's how:
Should you invest in Bitcoin now that it has reached $100,000?
Bitcoin has had a roller coaster day, rising above $103,000 and then below $96,000, and is up about 113% for the year as of late Thursday afternoon.
“For those who are on the fence and are afraid of missing out and want to start investing now, is now a good time to buy or will cryptocurrencies and Bitcoin fall? You may be wondering if you should wait until later,” Elizabeth Ayoola, a personal finance expert at NerdWallet, told USA TODAY.
Conventional wisdom says you shouldn't invest in something while it's at its highest value. But Ayoola said Bitcoin is “unstable, so we don't know how high it's going to go.”
Many people predict that Bitcoin will continue to rise. SkyBridge founder and former White House communications director Anthony Scaramucci says Bitcoin could surpass $170,000 by mid-2025, Ark Invest CEO Cathie Wood says Bitcoin is expected to reach $1.48 million by 2030, Fortune reported.
Standard Chartered Bank expects Bitcoin to reach $200,000 by the end of 2025, Newsweek reported.
Bitcoin's volatile history has made it an asset that many people should consider investing in, Scaramucci told CNBC on Thursday.
“I think this is going to be part of a long-term tactical asset allocation strategy, which means your portfolio will have 1, 2, 3, 4% Bitcoin,” he said Thursday in his new book, The Little Book. said Scaramucci, who published the book “Of Bitcoin''. .
Bitcoin has reached $100,000: how high will it rise in 2025?
Bitcoin price monitoring
If you are thinking of investing in Bitcoin, you should be aware of the future decline in Bitcoin's value. Its value decreased slightly in August, September and November.
Mr. Green expects a “short-term decline” as some investors take bank profits. He said in a note to investors on Thursday that after that “pause,” he expects Bitcoin to soar “to $120,000 in the first quarter of 2025.”
“Obviously, with a real asset class like Bitcoin, it's generally better to buy on the decline than on the peak,” Green told USA TODAY. “This is standard investment practice.”
Bitcoin is a slightly different type of asset in that it is digital. Its creator, the person or group known as Satoshi Nakamoto, designed Bitcoin to have a cap of 21 million Bitcoin tokens. Approximately 19 million tokens have been issued so far.
Bitcoins are created when cryptocurrency miners use computing work to verify Bitcoin transactions on a decentralized blockchain network. This is essentially a digital ledger to prevent fraud. Cryptocurrency miners earn Bitcoins when they work.
Back in April, Bitcoin reached its “halving,” which occurs approximately every four years and slows down the rate at which new Bitcoins are created and circulated. According to Investopedia, demand is likely to increase as Bitcoin approaches its 21 million token limit.
If you want to learn a little more about the birth of Bitcoin, the HBO documentary “Money Electric: The Bitcoin Mystery” examines the birth of the cryptocurrency.
How can I invest in Bitcoin?
There are several ways to invest in Bitcoin.
Buy Bitcoin itself. You can buy Bitcoin at cryptocurrency exchanges like Binance.US, Coinbase, and Kraken. Create a “crypto wallet” to hold fractional shares of cryptocurrency. Unless you invest in the $100,000 range, you will get a portion of your Bitcoin. According to NerdWallet, the smallest share of each Bitcoin, called a Satoshi after the name of the cryptocurrency's creator, is equal to one billionth of one Bitcoin. According to NerdWallet, the minimum investment you can make on Coinbase is $1. (But even with the 50 cent fee, you'll only get about 50 cents in Bitcoin.) Online brokerage firms. You can invest in Bitcoin and other cryptocurrencies using well-known brokerages like Fidelity and E-Trade, as well as trading apps like Robinhood. Here you can also enter for a small fee. For example, on Robinhood, you can buy some Bitcoin and other cryptocurrencies for as little as $1. Exchange-traded funds: These ETFs (approved by the SEC earlier this year) are offered by investment firms like BlackRock and Fidelity and can be purchased in other ways. Invest in cryptocurrencies just like you would buy stocks. You can also invest as much as you want.
“If you invest in the fund, it will be easier to buy and sell Bitcoin, and it will be more regulated,” Ayoola said, adding that Nerd Wallet has a number of online resources for investors about Bitcoin. “But if you buy directly from an exchange, you have direct ownership of your coins and are not restricted to trading on traditional stock exchanges.”
When investing in Bitcoin, consider it within your overall investment strategy. Most financial experts recommend a diversified portfolio with no more than 3% of cryptocurrencies, Ayoola says. “However, if you have a high tolerance for risk, you may consider consulting a financial professional before committing your hard-earned cash to cryptocurrencies,” she said. “Bitcoin is bullish right now, but that doesn't mean the investment won't fall next week or in the coming months,” Ayora said. “So we don’t want to invest money there that we will need in the near future.”
Need a Bitcoin investment strategy? Try dollar-cost averaging.
You identify a certain amount of money that you can invest in Bitcoin, then you split it up and invest it over different time frames, regardless of the price. You can also “invest $50 and divide it by how many months you want to extend it,” Ayoola said.
The theory is that “costs average out over time,” Ayola said. “This could be a way for people to invest within their means without committing too much money and essentially get the best price point for Bitcoin over time.”
Contributors: USA TODAY's Daniel de Visé, Joey Garrison, Jessica Guynn, Max Hauptman, Eric Lagatta, Jonathan Limehouse, Bailey Schulz and Reuter.
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