Compare the pros and cons of investing in cryptocurrencies versus stocks, including risk, regulation, and potential returns.

Over the past few years, cryptocurrencies have become a popular and commonly traded asset class. Although the crypto market is still well behind the stock market by size and trade volumes, it has achieved impressive growth in recent years, with many investors increasingly appreciating the unique benefits that this young asset class may deliver. Among these benefits are higher potential returns, with Bitcoin (BTC) having vastly 

 in recent years; low barriers to entry; diverse choice of assets; and independence from a central controlling authority.

Despite these benefits, many investors are concerned about levels of regulation for both cryptocurrencies and their trade. Having grown accustomed to the tightly regulated stock market, some investors find crypto too risky for their taste. Yet, over the last few years, the levels of regulatory control and oversight applied to cryptocurrency have grown substantially, increasingly blurring the lines between crypto and stocks. 

While cryptocurrencies are still less regulated than traditional asset classes, such as stocks, bonds, commodities and forex, they now operate under a much more defined and rigorous regulatory system that allows more investors — including those who have traditionally stuck with the stock market — to take advantage of crypto's unique benefits.

With crypto becoming increasingly accepted as a viable form of investment, many investors and traders are now wondering if trading cryptocurrencies can provide an edge over trading stocks, or any advantages as an accompaniment to trading stocks. In this article, we look at these two major asset classes of modern finance — crypto and stocks — to help you answer these questions with more clarity.

 are digital assets issued generally circulated on 

 — networks whose operations and security are enforced by a 

 among many (often thousands) of independent network nodes. On these networks, cryptocurrencies are used as the asset directly utilized for facilitating decentralized consensus and on-chain security. 

Additionally, cryptocurrencies act as digital currencies for value exchange and storage within individual blockchains. In addition to its on-chain uses, crypto is also utilized beyond blockchain networks as a digital currency available for trading on both 

In fact, trading crypto via CEXs has become a major activity for many traders and investors, due to its use of an 

 system that greatly resembles that of traditional stock markets. This structure has created a new and vibrant market within the overall finance ecosystem. As of the time of this writing (Oct 21, 2024), the overall market capitalization of all cryptocurrencies stands at over $2.48 trillion, a figure that makes the crypto market hard to ignore.

The world's first and still largest cryptocurrency asset — BTC, more frequently referred to simply as 

 — was launched in early 2009. While thousands of cryptocurrencies have been introduced in the years following Bitcoin's birth, none has managed to topple the pioneer of the cryptocurrency world. Bitcoin still holds slightly over half (54%) of the $2.48 trillion market cap that makes up the entire crypto market. Native to the Bitcoin blockchain, BTC is used to secure the network's operations, pay for on-chain transaction fees and to store and transfer value.

With close to 13% of the total market cap share, 

 (ETH) is the crypto market's second-largest asset. ETH, often referred to as Ether, performs exactly the same essential functions on its own blockchain, Ethereum, as BTC does on the Bitcoin chain — securing the network's operations, acting as a means of payment for on-chain transfer fees and being used to store and transfer value. However, the Ethereum blockchain has an additional functionality that Bitcoin largely lacks — the ability to support 

 (DApps), blockchain-based applications powered by complex programmable logic via 

. ETH, along with the many cryptocurrencies native to these applications, can generally be used for transaction fee payments within the DApps.

The Bitcoin and Ethereum duo dominate the cryptocurrency market cap rankings, together holding nearly two-thirds of the entire crypto market's capitalization.

Stocks are regulated financial assets that grant holders the right to a share of public company ownership. They’re traded on highly regulated stock exchanges, such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE) and Nasdaq-100 (NDX). In the U.S., the primary regulator for stock exchanges is the Securities and Exchange Commission (SEC).

Stock ownership may entitle you to receive dividends distributed by a company, of which you’re a partial owner. However, dividend payments aren't an obligation for a public company, and in many cases, investors don't get this perk for years, if ever. Just ask any stock owner of Tesla (TSLA), a business well-known to have never paid dividends.

Many stock market investors, however, aren't relying on or even expecting dividends from their assets. The typical stock owner is counting on their stocks’ price appreciation to turn a profit.

Stock ownership can also act as an indirect way to invest in a particular commodity. For instance, some investors who want to include gold-linked assets in their portfolios may choose stocks of gold mining companies, such as Newmont Corporation (NEM), Barrick Gold Corporation (GOLD), Gold Fields Limited (GFI) and more.

Crypto vs. Stocks: Similarities and Differences

Both cryptocurrencies and stocks are traded mostly on dedicated order book-based exchange platforms — stock exchanges in the case of stocks, and CEXs in the case of crypto. A small volume of stock trade does occur outside of exchanges, on both private and over-the-counter (OTC) markets. However, the majority of trade volume in stocks occurs on exchanges. Likewise, a modest proportion (usually around 10 to 15%) of crypto trade takes place on blockchain-based DEXs, with the remaining trade flowing through CEX platforms.

Both crypto and stocks can be valuable assets for the purpose of diversifying portfolios. In fact, a popular strategy is to combine these two asset classes to form a well-diversified investment position. Additionally, both markets offer a wide variety of choices for investors. As of mid-October 2024, there are around 60,000 publicly traded company stocks in existence, with the world's largest exchange by market cap (NYSE) listing close to 2,300 of those companies. Meanwhile, the number of cryptocurrencies is far from trivial — approximately 15,000, per data from CoinGecko.

Both cryptocurrencies and stocks can involve scams and underhanded tactics on the part of the companies and entities behind them. Within crypto markets, 

 are the most publicized form of fraud. In a typical rug pull, the cryptocurrency issuer quickly withdraws all liquidity and support for the asset, leaving investors with worthless coins. In the stock market, insider trading — whereby certain investors and groups trade the stock using non-public information that gives them an unfair advantage over other market participants— is a common problem.

 before investing in a stock or crypto token is imperative for all investors who wish to avoid falling victim to such scams.

On average, cryptocurrencies feature a markedly higher level of 

 than stocks. While this reality makes crypto a relatively riskier asset type, it also means higher potential returns. However, that's not necessarily the case in all scenarios. For example, for extended periods of time, certain stocks — particularly in the technology sector — may exhibit greater volatility than the more stable cryptocurrencies, such as Bitcoin.

The stock market is heavily regulated, while cryptocurrencies currently operate in an environment with much lower regulatory oversight. It should be noted, however, that in recent years, the level of regulation in crypto markets has gradually increased. Regulatory authorities such as the U,S, SEC are increasingly turning their attention to crypto. 

While some decentralization purists in the crypto industry dislike this development, the fact is that increased regulation has allowed cryptocurrencies to enter the financial mainstream via products such as 

Stocks entitle each of their holders to a share of company ownership. The company, including its assets, is the underlying entity owned by the stockholder. In contrast, most cryptocurrencies don't confer part-ownership of the blockchain platform or app from which the crypto is issued. The exceptions to this generality are 

, which may mimic the utility of stocks by providing ownership rights with regard to their native crypto projects. However, the full regulatory status of security tokens is still a gray area as of late 2024.

Stock markets are much older and more mature than crypto markets. The first stock exchanges appeared centuries ago, with the oldest exchange — the Amsterdam Stock Exchange (AEX, now referred to as Euronext Amsterdam)— established in 1602. Since at least the 19th century, trading stocks has been a major component of the world’s overall financial system. In contrast, the first (and now defunct) platforms that facilitated trade in crypto assets — Bitcoinmarket.com and Mt. Gox — emerged only in 2010, about a year after the launch of Bitcoin.

Pros and Cons of Investing in Crypto vs. Stocks

The key advantages of investing in crypto include the generally higher potential for returns, crypto’s 24/7 markets and the ability to diversify away from overreliance on stocks. The last point is particularly relevant for investors who tend to concentrate their asset allocations exclusively on stocks and bonds, increasing their dependence upon these markets. Some crypto investors also greatly value the ability to own and trade assets independent of a centralized authority's control.

Among the disadvantages of crypto investment are higher risk/volatility levels, lack of full regulation, and the potential vulnerability of some blockchains to technology hacks. Due to their lower trading volumes than those of stock markets, crypto markets might also be influenced by 

 — market participants who control large shares of a certain crypto asset, giving them more leverage to manipulate its prices. The influence of whales is more of a concern for smaller-cap coins than for assets like Bitcoin, Ether or other major cryptos that feature significant trading volumes.

Investing in stocks provides advantages such as lower volatility/risk, more regulatory protection, familiarity (for many investors) and a lower incidence of outright scams. The stock market is also solidly established, with a long history of data. This allows investors and traders to apply time-tested trading strategies and approaches.

The primary disadvantages to investing in stocks include their lower potential for returns, their limited trading hours and higher barriers to entry for smaller investors. While you can start trading crypto with minimal investment (literally a few dollars), trading stocks involves higher initial investment requirements, often comes with a plethora of setup and brokerage fees, and may have more stringent identification and qualification requirements, particularly when trading stocks internationally.

Crypto vs. Stocks: Which Investment Is Better for You?

You can trade crypto to benefit from the potentially high return rates, low barriers to entry and potential to diversify a stock-heavy portfolio. To start your crypto trading, it's recommended you open an account at an established exchange with significant trading volumes and a sufficient variety of assets on offer. As one of the largest CEX platforms in the world, 

 you various ways to trade crypto assets, including 

 products, such as standard futures contracts, perpetual futures and options.

You can trade stocks if you prefer the protections offered by a highly regulated market, and would like to stay within the confines of a familiar environment. Note that most investors who believe in the power of portfolio diversification allocate their funds to different asset classes, including stocks, crypto, commodities, forex, bonds and more. Thus, it's rarely a choice of one asset class versus another.

For investors interested in trading various asset classes and using a unified environment, Bybit offers the 

, forex and various stock market opportunities, including gold mining stocks and popular indices like the FTSE China A50, Dow Jones, Nasdaq-100 and Hang Seng. 

 investments under an MT5 account are structured in the form of CFDs (contracts for difference).

Through Nov 8, 2024, opening an MT5 account and trading just 100 USDT will qualify you to participate in Bybit's 

Both cryptocurrencies and stocks are highly popular asset classes, with each offering their own unique benefits. Which one you choose largely depends largely upon your 

, starting capital, understanding of crypto and blockchain technology, trading style and willingness to go beyond familiar investment environments. At the same time, for a savvy investor it's unlikely to be the choice of one or the other. To benefit from 

 offered by portfolio diversification, it's always advisable to use both — and perhaps even more — asset classes. At the end of the day, it’s not about which one to choose, but what proportion to allocate to each.

Beginner

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Crypto vs. Stocks: Which Is Better For Investing?

APR and APY are two different ways of calculating interest rates. Read on to find out their difference and how it affects your crypto investments.

APR (annual percentage rate) and APY (annual percentage yield) are key concepts used in the calculation of interest from a variety of investments or loans. These investments may include the provision of funds to liquidity pools on exchanges, 

Some of these investments may pay you interest based on the APR rate, while others use the APY method of calculating the payout. For any investor, it’s imperative to know the difference between APR and APY in order to allocate your funds to the most profitable income sources.

Compounding is the only difference when you calculate the return of APR and APY. With all other things being equal (the initial investment, the quoted interest rate and the period of investment), APY will always result in a higher final amount due to the compounding effect.

In practical terms, if you borrow money it’s better to do so using APR interest rates as a base. However, if you invest in funds, APY interest rates will yield higher total returns.

Many people are familiar with the interest rate paid on a savings account or charged for loans by traditional financial institutions. When you’re quoted a 5% annual interest rate for your investment of $100, it will yield $5 in profit in exactly one year from the time you invested. Alternatively, if you borrow $100 at the same interest rate, you’ll have to pay back your borrowed amount plus $5 in interest a year later.

This simple interest rate calculation is based on the APR interest rate. 

Whether in traditional banking or the crypto world, APR refers to the ordinary (simple) interest applied to the principal amount of an investment

deposit account or loan. It doesn’t take into account the concept of compounding interest.

APR is an annualized figure. If the principal balance on an investment, loan or credit card interest is held for less than a year, the interest applies on a 

 basis. For example, a half-year investment with an APR of 5% will earn you exactly half the interest, 2.5%, on your principal amount.

Let’s say you invest 1ETH in a lending pool on a decentralized finance (

) platform to earn interest, and the interest rate in APR is 24%. If you lock your funds in the pool for exactly 365 days, your total investment will grow to 1.24 ETH. This includes your principal of 1 ETH and the 0.24 ETH (based on the 24% APR) that accrued as interest.

Below is the basic formula for calculating a total final amount based on the annual percentage rate:

 ﹦ principal, i.e., the initial investment or loan amount

Using our 1 ETH as the principal for the investment, the figures in the formula are:

This assumes an investment period of exactly one year. If you hold the investment for a three-month period, i.e., one quarter (0.25) of a year, then the formula yields:

APY measures the interest rate applicable to an investment or loan that takes into account 

 The interest can be compounded over any set period — continuously, daily, weekly, monthly or annually. The inclusion of compounding interest makes calculating APY slightly more complex, as it includes the number of periods at which the amount is adjusted (based on the adjusted interest rate).

The formula for the final amount based on the annual percentage yield is as follows:

The important part of the formula is the N value — the number of compounding periods. It’s what makes APY and APR different. The number of compounding periods is the number of times the investment amount is recalculated, based on the quoted nominal interest rate.

During each recalculation, the interest is added to an amount that includes the initial investment plus all the previously accrued interest earnings. 

Let’s imagine you invest 1 ETH for a year at the APY rate of 24%, and your investment has two recalculation periods, at 6 months and 12 months, respectively. In this scenario, how much interest in APY you'll get is calculated according to the formula as follows:

APY vs. APR: The Differences in Compound Interest

APY yields a higher payout due to compounding. Compound interest in periodic recalculations can significantly increase the total final amount, as compared to APR-based interest. 

Hence, the same initial investment (1 ETH) over the same period (1 year) with the same quoted interest rate (24%) produces the final payouts of 1.24 ETH using the APR interest rate and 1.2544 ETH using APY's rate. As you can see, with compounding interest, your APY interest is magnified over time.

The more compounding periods used during the investment period, the higher your final amount. For instance, if your 1 ETH yearly investment at a fixed APY of 24% is compounded on a monthly basis, i.e., 12 times during the period of investment, then the final payout will be as follows:

APR and APY rates fluctuate depending on the terms and conditions of the lender and the different types of loans you sign. 

A fixed rate refers to a promised APR or APY throughout the term, disregarding market fluctuations or product performance. But if the rate is variable, the APY for your deposit accounts may be subject to different APY yields, depending on the market's demands.

In traditional finance, APR rates are widely advertised, particularly for loan products, while APY rates are more often used to market investment products. In the world of crypto, both APR and APY are used extensively on DeFi protocols, centralized exchanges (

) and other finance-related crypto platforms for a variety of lending and borrowing opportunities, liquidity pools, staking services, yield farms and more. Most large DeFi and centralized crypto finance providers have products with both APR and APY rates.

Staking Pools With Investment Opportunities in APY and APR, as Advertised on the World’s Most Popular DeFi Platform ― 

When borrowing funds or investing on platforms using APY rates, pay close attention to the mechanism of compounding, i.e., how many times and at what intervals your investment or loan will be compounded.

Naturally, APR rates are better for borrowing money, while APY is more beneficial for investing. The effect of compounding can work wonders for you when investing crypto for yield.

“My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

 product suite allows you to stake a variety of popular coins with interest paid in APY in a low-risk, guaranteed-withdrawal environment. You can choose between flexible and fixed-term investment periods. The platform currently offers an APY rate of ≥ 5% for some 

, one of the highest APY rates in the industry for stablecoin investments.

Some of the Current Offers on Bybit Savings

Other Investment Factors Besides APY and APR

When researching crypto investment opportunities on DeFi and centralized platforms, comparing APR and APY (and looking at the advertised interest rates) is only one factor in making a decision. Additional factors to take into account include the following.

Various fees usually accompany crypto investment opportunities, including those for transactions, withdrawals, closing costs and gas, which are charged by the underlying

 on decentralized platforms. Always take these additional fees into account when calculating your overall final returns. An opportunity with a high APY or APR but an unfavorable fee structure may work out worse than you initially expected.

Make sure you understand whether the advertised APR or APY rates are variable or fixed. Fixed rate opportunities apply the advertised interest rate for the duration of the investment, while variable rates are subject to fluctuations depending upon market conditions.

Additional Benefits and Rewards From the Investment

In some cases, in addition to earning interest on your investment you may get side benefits, such as liquidity provider (LP) tokens. These tokens may be reinvested on the same platform or other ones for further yields.

Invested Coin’s Current Performance and Future Outlook 

Some DeFi farms and pools advertise eye-popping APY and APR rates. However, these opportunities are often based on highly volatile coins with an unstable future outlook. These coins might also feature high inflation rates and/or volatility, which can lead to future depreciation in value. 

While your investment is earning a high return, based on attractive APY or APR rates, the coin you’ve chosen may be depreciating on a wider scale in the market. For instance, an APY or APR of 300% will be of little value if the cryptocurrency you’ve used drops in price by 400% during the year of your investment.

Larger and more established platforms, such as PancakeSwap and

, are time-tested and usually have ample liquidity. It’s best to stick with such providers, even if you’ve spotted those great APR and APY rates on a smaller platform. In an industry awash with scams, 

 and project failures, this point is of great importance to any crypto investor.

The crypto industry offers a vast array of investment and borrowing opportunities that are based on APY and APR rates. Due to the nature of the crypto market, APY and APR rates are often a few magnitudes higher than those you may encounter in the traditional finance industry. This opens up more lucrative return opportunities, but also carries more risks.

When investing or borrowing based on these rates, make sure that you understand whether you’ll earn or pay based on APY or APR. If the latter is applicable, pay close attention to the compounding periodicity that will apply to your investment or loan.

Intermediate

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The Difference Between APY and APR in Crypto Explained

Bitcoin is widely expected to continue to produce high returns. Investing just $100 in BTC today is forecast to be worth around $3,400 in ten years' time.

 (BTC) has progressed from a pastime of hardcore tech nerds to an activity indulged in by just about any investor segment, from the most influential investment banks to small retail investors. The BTC cryptocurrency is now considered a valuable part of any portfolio to capitalize on historically stellar return rates, hedge against risks or diversify away from overreliance on the stock market.

Since Bitcoin has long solidified its position as a popular investment asset, many people are pondering what would happen if they invested an amount as modest as $100 in it today. The good news is that such an investment has great potential for substantial return rates, at least judging by the historical performance of the world's leading cryptocurrency and predictions made by the vast majority of analysts. However, for optimal decision-making and choice, it's imperative that investors develop a comprehensive understanding of Bitcoin, what it is, what it does, its primary value drivers and its history both as a financial asset and as a technological innovation. In this article, we cover it all — and discuss what can happen in the future to your $100 invested in Bitcoin today.

Bitcoin is a decentralized network designed for the secure exchange and storage of a digital asset — the BTC 

. It's the world's first distributed network based on 

 technology. Launched in January 2009 by its still anonymous founder, 

, the Bitcoin network was envisioned to allow individuals to conduct secure and anonymous financial transactions, based on a digital asset independent from the influence of central banks and traditional finance institutions.

The Bitcoin blockchain's digital asset, used for value storage and transactions, is the BTC cryptocurrency, also known as Bitcoin. Technically speaking, Bitcoin denotes the name of the distributed network only, while the BTC crypto asset is referred to as Bitcoin.

Transactions on the Bitcoin blockchain are verified and confirmed using a 

 that involves the work of so-called mining nodes, or miners, network actors who are collectively responsible for enabling the platform's operations. This highly decentralized control system is designed to ensure Bitcoin's independence from either a single centralized entity or small, powerful group.

Miners validate transaction blocks on the Bitcoin network using a competitive computational procedure called 

 (PoW). Every ten minutes, on average, one miner wins the computational race and gets the privilege of adding a new block of transactions to the network's immutable and permanent ledger of records. As a reward for performing the work, the miner receives a certain amount in the BTC cryptocurrency. As of 2024, the standard Bitcoin mining reward is 3.125 BTC.

Besides being used within the Bitcoin blockchain as a means of secure value exchange and storage, BTC is extensively used on cryptocurrency exchanges as a popular trading asset. In more recent times, traditional finance (TradFi) investment firms have also added BTC to their portfolios, both as a direct holding on the blockchain and through products like 

Several factors have contributed to Bitcoin's value as a financial asset and, as we'll cover later, its solid long-term market performance. Some of these key factors are as follows:

Bitcoin might be a great way to invest in order to both diversify your portfolio and, importantly, capitalize on the cryptocurrency's stellar return rates. While Bitcoin is a volatile asset and has gone through its fair share of crashes and downturns, from a multi-year perspective, it’s done incredibly well compared to the 

As of the time of this writing (Sep 7, 2024), BTC has outperformed many major stocks and the stock market in general, both over shorter-term (one year) and long-term (five years) investment periods. Below is a chart demonstrating BTC's return rates over these periods, along with the same data for two leading stock market indices, the S&P 500 and Nasdaq-100 — as well as the stocks of the two largest technology companies by market capitalization, Apple and Microsoft, and the two largest banking organizations on the stock market, JPMorgan Chase & Co and Bank of America.

We've chosen the top tech stocks, since in recent years, Bitcoin has been most correlated with the stock market's technology sector. Many Bitcoin investors also consider leading tech companies' stocks in their decision-making. In contrast, the top banking stocks were selected for analysis as this sector is known to share relatively low correlations with Bitcoin and is often used by investors who prefer assets with greater stability than cryptocurrencies or technology stocks.

As evident from the chart above, Bitcoin has soundly beaten both the arguably more volatile tech sector and the stable banking sector of the stock market over both analysis periods. It has also absolutely trounced the overall stock market, as measured by S&P 500, and its technology-focused part, as measured by the Nasdaq-100.

Thus, historical data is unequivocal: BTC is an asset that's well worth investing in for reaping healthy returns, at least judging by its past performance.

For many investors who may be accustomed to regulated assets, such as stocks and bonds, cryptocurrency investment used to be taboo, due to uncertainty about regulatory protection. However, this is changing fast with the 

 by the U.S. Securities and Exchange Commission (SEC) in January 2024. Following the approval, many retail and institutional investors, including the leading investment funds, have added Bitcoin ETFs to their portfolios. This development has often been cited as one growth factor for Bitcoin's future price and prospects.

Potential Returns and Risks of Investing in Bitcoin

With its 107% yearly and 423% five-year growth rates, Bitcoin has earned its reputation as an asset capable of delivering excellent returns, typically far higher than those available in the stock market. Naturally, past performance may not always be a decisive predictor of future returns. However, the world’s largest cryptocurrency is widely expected to keep growing in the long term, with many analysts predicting excellent return rates in the future as well.

For instance, while BTC's current price (as of Sep 7, 2024) stands at $54,309, the aptly named PricePrediction portal 

 to $90,486 (67% growth) in 2025 and $552,658 (918%) in 2030. Another popular crypto price prediction resource, DigitalCoinPrice, 

 $128,188 (136%) in 2025 and $401,135 (639%) in 2030.

Along with the potential for these incredible returns, investment in Bitcoin does, however, have certain risks associated with it. This is to be expected for any high-growth asset. The crypto market and Bitcoin itself are known for their volatility, and BTC’s price can fluctuate significantly over shorter periods. In the past, Bitcoin went through multi-month periods of declines or stagnation, some of which lasted for over a year, often referred to as 

Besides the volatility risk, there are also regulatory issues, with many countries still in the process of regulating Bitcoin's use on financial markets.

Can You Make Money From Investing $100 in Bitcoin?

Based on past return rates and future price forecasts, investing $100 today (September 2024) in Bitcoin is likely — though not absolutely guaranteed, of course — to result in significant growth of the principal amount. Historical returns and many price predictions indicate approximately triple-digit growth percentages over the next several years, resulting in a few hundred dollars in profit from a $100 investment.

If you invest $100 in Bitcoin at today's price of $54,309, you’ll receive 0.00184 BTC. Let's see how much this amount would fetch in 2025 and 2030. While there’s a wide variety of BTC price forecasts by analysts, investment funds, market researchers, pundits, social media influencers in finance, prediction portals and more, most of them 

 or at least the majority of those who don't chase sensationalist or contrarian headlines 

 agree on very healthy expected returns for BTC. We'll use the forecast growth rates from the two popular price prediction portals mentioned above for our estimates 

Per PricePrediction's estimates, your 0.00184 BTC bought today will deliver you approximately $167 — i.e., $67 in profit — in 2025. In 2030, that amount of BTC will be worth about $1,017 per the portal's expectations.

If using DigitalCoinPrice’s forecast, your 0.00184 BTC bought for $100 today will be worth around $236 in 2025 and $739 in 2030.

There are different ways beginners can invest in Bitcoin. The most conservative way is simply to buy Bitcoin and hold it for a number of years, typically at least three to five, in order to take advantage of the asset's historically proven solid multi-year gains. This is known as the 

 (or “hold on for dear life”) strategy.

 (DCA). Using this method, you make regular investments at set intervals — e.g., weekly, fortnightly or monthly — for the same dollar amount each time. Both HODL and DCA require that the investor doesn't alter their strategy, regardless of Bitcoin's price movements.

More experienced investors may also choose to actively trade Bitcoin on a cryptocurrency exchange in order to take advantage of BTC price fluctuations, with both great return opportunities and risks lying within.

 (DEX), the optimal and most user-friendly way for beginners to purchase it is via an established 

 (CEX). For Bitcoin newbies, the Bybit CEX offers some of the easiest and most intuitive ways to buy and trade Bitcoin.

For those who prefer to stay within the realm of tightly regulated markets, there are also Bitcoin ETFs available for investment.

If you actively trade Bitcoin on a CEX, you’ll typically store your funds directly within the cryptocurrency exchange’s account. Those who need a long-term storage solution away from centralized platforms can use blockchain wallets, which come in two main varieties 

Both of these store your funds directly on the underlying blockchain, i.e., the Bitcoin network. However, there are differences in the storage mode. A hot crypto wallet is software that stores your 

 in digital format online. Being always online, hot wallets allow you to conveniently transact whenever you need. Hot wallets come in the form of mobile apps, desktop applications, web-based apps and browser extensions. Some popular hot wallets include 

. Bybit also offers a user-friendly web3 wallet, 

, which is fully integrated with the exchange itself.

Unlike hot wallets, cold crypto wallets store your private keys offline on a hardware device or written somewhere safe. Hardware wallets are the most commonly used type of cold wallet. Typical devices for cold wallet storage are specialized cold wallet dongles, USB dongles, PCs and even smartphones that aren’t connected to the internet. 

 are the two most popular hardware wallets among crypto users.

A cold wallet could be described as an environment in which you simply sign crypto transactions with your private key while staying offline. This helps minimize the probability of your private key data being hacked.

How much was $100 in Bitcoin 5 years ago?

Bitcoin's opening price five years ago (Sep 7, 2019) was $10,353, as reported by Yahoo Finance. Back then, $100 could buy 0.0097 BTC.

Today, at a current price of $54,309, 0.0097 BTC would be worth around $525, for a $425 profit.

How much will $100 in Bitcoin be worth in 10 years?

Estimates for Bitcoin — or any other asset, for that matter — for periods as long as 10 years in the future are always going to be less certain. Over the course of a decade, a large number of factors in areas as diverse as the economy, politics, technology, finance and social issues, as well as specific tech fields like 

 (AI), will impact financial markets and Bitcoin.

Most popular price prediction portals haven't yet made explicit forecasts for BTC for 2034, ten years from today. PricePrediction forecasts BTC will reach nearly $1.7 million in 2033 and around $2.65 million by 2040. Extrapolating from this data, we could assume that Bitcoin's price in 2034 could be close to $1.85 million.

Based on this estimate, $100 in Bitcoin today (0.00184 BTC) will be worth $3,406 in ten years' time. Not a bad amount at all for just a $100 investment today!

How much should I invest in Bitcoin to make a profit?

The actual amount to invest will always depend upon your specific circumstances, financial situation, risk tolerance and trading experience. To test the waters, the most conservative investors may start with modest amounts — for example, $100. Naturally, those who believe in Bitcoin's bright future, have solid trading experience and don't mind a certain level of risk associated with crypto may want to invest in larger amounts.

How long should I hold my Bitcoin to maximize potential returns?

Historically, Bitcoin has tended to produce significant returns over multiple years. The longer you hold your investment, the higher returns you could realize. Over shorter periods of time, Bitcoin's volatility or prolonged bear markets might negatively affect returns. However, over multi-year periods, BTC has bounced back to produce growth rates that have left many stock market investors seething with envy.

What if I’d invested $1,000 in Bitcoin 10 years ago?

Ten years ago, in early September 2014, Bitcoin was valued at $391. At that time, an investment of $1,000 would have fetched around 2.56 BTC. This amount of Bitcoin is worth nearly $139,000 today — a sizeable fortune started 10 years ago for the price of a laptop.

What other cryptocurrencies could I choose to invest $100 in?

Depending upon your risk tolerance, trading style and familiarity with the crypto market, you might invest $100 in various crypto assets. Those who prefer stability and relatively lower risk might consider other high-cap cryptocurrencies, such as 

On the other hand, if you don't mind high-risk investments, then lower-cap coins (with market caps typically below $2 billion or even $1 billion) can potentially represent excellent value. While the risks associated with investing in these coins might be higher than their high-cap alternatives, there’s always the potential for some of these coins to produce stratospheric return rates and significant profits in a very short period.

The key to investing in such low-cap, high-growth assets is to 

 the crypto projects associated with the coins — such as using the resources provided by Bybit Learn.

Over the past 15 years, crypto investments in the Bitcoin market have produced countless success stories and, of course, failures as well. In 2024, it's estimated that there are over 

, many of whom made their fortunes by investing modest amounts years ago in an asset that had been viewed skeptically and predicted to crash out of existence — but is still here and kicking. In 2024, Bitcoin remains a high-growth asset with a history of success on the market over many years.

Naturally, the mammoth growth rates of yesteryear are no longer part of the cryptocurrency's characteristics. At the same time, Bitcoin continues to produce returns that vastly outperform most other asset classes' results. If you have $100 to invest today, it's hard to justify choosing a better asset than Bitcoin.

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A Realistic Look: What Happens if I Invest $100 in Bitcoin Today?

Discover the 13 best cryptos for short-term gains in 2024, including Bitcoin, Ethereum, and Solana. Navigate the market and capitalize on quick profits.

While most of 2024 has remained primarily 

, the cryptocurrency market is still highly volatile, leaving most investors uncertain about whether to 

The first Monday of August 2024 started out red. 

 in what’s being called “Bloody Monday.” Some experts are comparing this crash to a similar one that occurred in 2022, but the market corrected and went ahead to pump tremendously.

A crash like this can be scary, but it’s an opportune time for a savvy investor to accumulate more crypto assets at discounted prices, since the market often rebounds and you can make some impressive short-term gains.

Are you wondering if now is the best time to buy? We’ve compiled some of the best cryptos to buy now, tokens that have fallen in price but could be perfect for short-term trading as the market corrects. 

Which Crypto to Buy Today for the Short Term

In the following list, we’ll provide an overview of the best coins to invest in today, including their prices and 

, in order to help you leverage short-term trading for gains.

, it remains one of the best cryptos to buy in 2024. Since its entry into the crypto world, Bitcoin has remained the largest coin in terms of market cap, which now stands at $1.19 trillion (as of Aug 14, 2024).

Furthermore, Bitcoin is still number one in crypto rankings, a position it’s held for over 12 years. As a network, Bitcoin’s ecosystem continues to grow, with the recent additions of 

 boosting the coin's scalability and utility.

Bitcoin is a solid store of value and the best long-term crypto to buy. In the short term, it can provide considerably quick gains as the market bounces back.

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