How Much Should You Invest in Bitcoin?

2 min read by Jefferson
published 2 months ago

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What if I told you that it was possible to invest your hard-earned wealth in an asset that was well on its way to becoming universally recognized as the most desirable money humankind has ever seen? You would probably want to get some, right?

Before the world catches on 

Buying some Bitcoin now is to front-run 99% of the world before this realization becomes a reality. Think of it as if you’d purchased some gold with your seashells, while everyone was still using shells as money.

Today you can still buy a meaningful amount of Bitcoin with an average person’s working wage. There will only ever be 21 million Bitcoin. With 8 billion people on the planet, that is .002625 Bitcoin (or 262,500 Sats) per person. Today about $50 will buy you that. 

A satoshi, or “Sat”, is the smallest unit of a Bitcoin. (100,000,000 Sats = one Bitcoin). You can buy fractions of a Bitcoin. A seemingly small amount, if accumulated upon, may be a small fortune in the coming decades. 

Considerations for investing in Bitcoin

Many factors will come into play when deciding how much you should invest in Bitcoin

Traditionally recognized reasons for investing

  • Saving for your future self, family, or generations to come  
  • Growing your wealth
  • Protection against inflation 
  • Having exposure to diversified assets

Investing in Bitcoin (assuming that you buy and hold for the long term) will offer all of the above benefits and more.

Additional advantages of preserving a portion of your wealth in Bitcoin

  • Ability to self-custody Bitcoin (hold it yourself).
  • Assurance that it will never be debased due to Bitcoin’s fixed supply of 21 million. Your share of the pie stays the same for as long as you own it.
  • Usefulness as a hedge against inflation and irresponsible government/central bank practices. 
  • Ability to send Bitcoin to anyone worldwide, cheaply, in minutes.
  • Settlement assurance. When you send a Bitcoin transaction, it is final and can’t be reversed or censored.
  • Gaining exposure to the leader in a new asset class, cryptocurrencies.

Prudent investors usually allocate 10-20% of their income to investments, intending to have their money work for them, compounding in value instead of depreciating due to inflation.

Stress-free Bitcoin accumulation

By using an app like Amber, and their automated recurring purchases, you can Dollar Cost Averaging (DCA) into Bitcoin by regularly purchasing Bitcoin, catching the lows, the highs and the middle as it steadily marches its way towards global adoption.

Starting in October of 2015, if you had started investing $25 a week in Bitcoin, the value of your investment would be north of $220,000 today! The money you would have put in over that time is about $7,800. That is a 2,700% overall return on your investment and a roughly 450% yearly ROI! Check out Amber’s DCA calculator to test out scenarios for yourself. 

Beginning your Bitcoin journey

There is no harm in starting small as you grow your understanding of the attributes of this revolutionary new form of money. Getting off zero  by making your first purchase and keeping the ball rolling with DCA is a great way to build conviction and reap the enormous benefits as the world continues to wake up to Bitcoin.

Want to learn more about Bitcoin? Check out Amber’s Guide to Investing in Bitcoin, Bitcoin Glossary and newsletters. These are great places to start! 

If you’re ready to dive in, you can make your first Bitcoin purchase in under 90 seconds with Amber.

Start buying Bitcoin

Scan the QR to download the Amber iOS or Android app.

Disclaimer: Amber is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how information on our website, in emails we send or in our app, relates to your unique circumstances. Amber is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of our website, our emails or our app.

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