3 ways to invest in Bitcoin without spending $100,000

With Bitcoin's recent meteoric rise in price, many investors are wondering how they can get in on the action. But with the price of one Bitcoin exceeding $100,000, how exactly can you invest in the world's most valuable crypto coin?

With Bitcoin’s recent meteoric rise in price, many investors are wondering how they can get in on the action. But with the price of one Bitcoin exceeding $100,000, how exactly can you invest in the world’s most valuable crypto coin?

3 ways to invest in Bitcoin without spending $100,000

One common misconception about buying crypto is that you have to buy the whole coin if you want to invest. This isn’t necessarily the case, though there are plenty of cheaper altcoins you can buy individually. If you want to buy Bitcoin, though, it may be wiser to buy pieces of the coin or Bitcoin-related funds.

Whichever way you choose to invest, know that investing in crypto can be risky. Prices are only driven by what other people are willing to pay for the coin, not by hard assets such as cash flow or business performance, so keep that in mind before investing your hard-earned cash.

Here are three ways to buy Bitcoin, even if you don’t have $100,000.

1. Buy a fraction of a Bitcoin

If you want to start investing in Bitcoin, the good news is that you have options. You can head to crypto exchanges or online brokerages to buy pieces of the coin — or fractions — rather than an entire unit. If you don’t already have an account with any of these platforms, it’s easy to set one up within a matter of minutes.

Each platform has different trade minimums for buying crypto. Webull, for example, has an account minimum of $1 — approximately 0.00001 of a Bitcoin as of mid-January — to trade crypto. If you bought $50 worth of Bitcoin, you’d have approximately 0.00047 of a Bitcoin.

Note that each platform has its own fee structure. Even zero-commission trades may have a spread markup, meaning that the costs are built into a coin’s buy or sell price.

2. Invest in a Bitcoin ETF

A Bitcoin exchange-traded fund (ETF) might be for you if you want to invest in Bitcoin but prefer not to own Bitcoin directly or manage the inherent risks, such as storage.

Approved in 2024, Bitcoin ETFs make it easier to invest in Bitcoin and help you avoid the potentially riskier process of using a crypto exchange. Ethereum, the second-largest cryptocurrency, can be bought through ETFs, too.

Because Bitcoin ETFs track Bitcoin, you should effectively see the same returns — minus expense ratios — as holding the coin directly but without the hassle of safely storing your crypto. The best Bitcoin ETFs are easy to buy and tend to offer low fees.

You can even buy fractional shares of a Bitcoin ETF. More advanced investors may consider trading options on Bitcoin ETFs or getting into Bitcoin futures ETFs.

Investing in a crypto ETF is still risky, though. If the price of Bitcoin falls, so will the value of Bitcoin ETFs.

3. Invest indirectly in Bitcoin

Bitcoin is a big business. If you want to take a step back even further from investing directly in Bitcoin, you could invest in a Bitcoin-related stock or ETF. Some possibilities include:

Should you invest in Bitcoin?

Bitcoin can be part of your broader investment strategy, but it shouldn’t be your only one — if only because crypto is volatile and has no real assets backing its value. Crypto prices rise and fall based solely on investor sentiment and outsize gains in the past don’t guarantee future results. Some advisors recommend only allocating 1 to 2 percent of your portfolio to digital assets.

Before you consider investing in crypto, get your finances in order. Make sure you have an emergency fund in place, a level of debt you’re able to manage and a diversified investment portfolio. Understand that crypto is speculative and never invest more than you’re willing to lose.

A financial advisor can work with you to create a balanced portfolio that meets your short- and long-term goals — and Bankrate’s AdvisorMatch can help you connect with a CFP® professional.

Bottom line

If you want exposure to Bitcoin without having to spend more than $100,000 for one coin, there are other ways to invest. You can buy fractions of a Bitcoin on crypto exchanges or brokerage platforms, invest in a Bitcoin ETF or look to crypto-related stocks and ETFs.