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The age-old question of how to invest a modest sum in cryptocurrency has sparked fierce debate among seasoned investors in Reddit posts, with many delivering harsh truths about the limitations of small investments. But while the experienced traders make valid points about realistic expectations, they may be missing a crucial element of the investing journey.
The overwhelming consensus among experienced crypto investors is clear: put that $100 entirely into Bitcoin. The reasoning is both practical and philosophical.
“By the time I bought a bunch of alts and even did a 2x total… I woulda been better off just buying Bitcoin,” shared one seasoned investor, highlighting a common experience. “Also WAY less hassle at tax time. Having to log all the transactions into Koinly and tons of dexes and exchanges sucked. Just to make less money.”
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This sentiment reflects the hidden costs of diversification that newcomers often overlook. Managing multiple cryptocurrencies requires tracking numerous wallets, understanding different Layer 2 solutions, analyzing tokenomics, and navigating complex tax reporting requirements. For a $100 investment, these complications often outweigh potential benefits.
The “Bitcoin maximalist” approach also stems from a fundamental belief in Bitcoin’s role as digital gold. “Bitcoin’s price hasn’t changed. Ever. 1 BTC is still 1 BTC. Fiat is what’s losing value,” one investor noted, framing Bitcoin as a hedge against currency devaluation rather than a speculative investment.
However, the experienced community delivered some sobering calculations about $100 investments. “If Bitcoin were to double from £80,000 [$106,200] to £160,000, you could turn £100 into a massive £200,” one skeptic pointed out sarcastically. “The percentage returns are no longer viable with Bitcoin for most retail investors.”
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This perspective highlights a crucial reality: Bitcoin’s days of 100x returns are likely behind us. Even optimistic projections of Bitcoin reaching $500,000 would only turn $100 into $550—hardly life-changing money for most investors.
