If you had invested $100 in Bitcoin in 2010, you’d be $70 million richer today. Mind-blowing, isn’t it? But before you get too excited, try to understand cryptocurrency and its entire ecosystem. This will guide you to make informed investment decisions. 

Some people still perceive Bitcoin as a get-rich-quick scheme, especially when they hear things like investing $100 and earning $1 million in a few years. What they often overlook is Bitcoin’s volatile nature. The Bitcoin market is very unpredictable. It can suddenly fall, and people will lose money. It can also rise, and people will make money!

This guide was prepared to help you understand how Bitcoin works and the factors you must consider before making an investment decision. 

Why You Need To Know About Bitcoin Investment

Cryptocurrencies typically promise potential for significant profits but also have considerable uncertainty.

In 2017, Bitcoin reached a value of over $19,000. By the end of 2018, it was valued below $4,000, and there was no particular reason. Again in 2022, market fear and regulatory issues caused prices to crash.

The crypto space is not effectively regulated like the traditional global banking system, and numerous speculations and sentiments significantly impact the market.

So, if you want to venture into crypto trading, understanding the Bitcoin market is a must. You may need to also read the Bitcoin whitepaper, follow the advice of expert cryptocurrency investors, and examine past data. This is how you protect your money from losing value.  

I know of a friend who invested $500 in Bitcoin in 2019. Even during the COVID-19 pandemic and when the market was shaken and in constant decline, he refused to pull out his coins and never sold them until 2024. He sold the coin for $15,000 and gained a whopping $14,500. This was possible because he understood technical analysis and was patient enough to grow his coin. He succeeded not because he had money, but because he had knowledge.

Things To Know Before Investing in Bitcoin

Before entering any business, you must try to understand it fully. This is applicable even in Bitcoin.

1. Set up Your Digital Wallet First

If you want to buy Bitcoin, you’ll need a digital wallet and a crypto exchange—you can’t just walk into your bank and deposit a Bitcoin.

Let me walk you through the simple process for setting up your digital wallet: pick a safe wallet, sign up on a trusted exchange like Binance, verify your ID, connect your payment method, and you’re ready to trade.

2. Cryptocurrencies Are Not Universally Regulated

In some countries, there are clear laws and oversight by financial authorities for a crypto asset like Bitcoin. Crypto is regulated in countries like the US, EU, UK, Singapore, and Japan. Others, like Canada and Australia, only offer partial regulation, while crypto remains unregulated mainly in many regions, especially in most African countries.

Bitcoin is not directly controlled by a central bank or government, which is part of its appeal.

While regulations are slowly emerging around the world, the crypto space is still mostly self-governed. This means you should always be cautious when investing in crypto. Only put in money you’re okay with losing.

3. Bitcoin Volatility

In 2017, Bitcoin reached a peak of over $19,000. In 2018, it fell to $4,400. In 2021, it got to $69,000. By 2022, it had slipped below $17,000 again. This is not unusual, and many traders are aware of it.

To this day, Bitcoin is volatile. From January to May 2025 alone, the BTC price ranged between approximately $74,400 and $111,970. If you’re not emotionally and financially prepared to stomach wild price swings, think of another form of investment because Bitcoin might not be for you. 

Invest only what you’re willing to lose. And never invest based on what people are saying on the internet. 

Likely Bitcoin Investment Risks and How to Manage Them

  1. Price Volatility: Bitcoin’s value is not fixed; it could drop by as much as 20% overnight. You can navigate this by setting stop-loss orders and diversifying your portfolio.

  2. Security Risks: Failing to secure your digital assets properly means you don’t mind being hacked. To keep your cryptocurrency secure, use a hardware wallet, enable two-factor authentication, and never share your private keys with anyone.
  3. Scams and Ponzi Schemes: Shady trading platforms, “free money” scams, and tricky links designed to steal your info are everywhere. So, use only reliable and properly licensed exchanges. Double-check every platform before you put any money or personal details into it. Stay safe out there!
  4. Regulatory Changes: Crypto laws change fast. A government announcement can cause prices to drop. Stay informed about global news and adjust your investments accordingly.

  5. Emotional Decisions: Do not let the Fear of missing out (FOMO) or panic selling rattle you because it can cause problems. Create a plan, set goals, and stick to them despite the noise.

Frequently Asked Questions (FAQs) About Investing in Bitcoins

How can a beginner start with Bitcoin?

You can do this by signing up on various crypto trading platforms. When you sign up, verify your identity, deposit funds into your wallet, and purchase Bitcoin. Start with an amount you can part with and learn as you go.

What is the minimum investment required to get started with Bitcoin?

There’s no minimum amount to use in getting started. But it is important to start small and increase your investment as your confidence grows.

Conclusion

Bitcoin is a financial revolution with real risks and rewards. Don’t just believe the success stories circulating online; take your time to understand Bitcoin. It’s an investment, not a get-rich-quick scheme. 

Go on personal research, and learn how it works. Know how much risk you’re willing to take for the business. Then, start small with what you can afford, and keep your ears open to learn about new updates and relevant info that could help you protect your assets.

Crypto is moving very quickly, but when you know what you’re doing, you can move smart.

Last updated on July 7, 2025