Surges in Bitcoin (BTC) price has been beneficial to those who invested in the cryptocurrency asset. Since its inception in 2009, the asset’s value has been up, compounding at roughly 100% – 200% per year (according to SoFi). The media tends to ride the hype when prices surge, but also downplay the asset when prices drop. While it is trending upward, it will consume the news cycle and lead to further FOMO (Fear Of Missing Out) among new investors.
The sentiment for Bitcoin has been increasing since it surpassed the $20K level back in late 2020. Some people believe it might be too late to buy or even own a whole Bitcoin. There will only be 21 Million in existence, so it is a rare asset. There will not be enough for all people in the world to have one. Thus, the belief that it will become impossible to own a whole Bitcoin. Not to worry, there are still ways to get to 1 BTC.
A common misconception is that you have to buy 1 BTC. That is not true, because you can buy fractions of Bitcoin. The asset is divisible by units called satoshis or sats. It is true that not many people can afford to buy a whole Bitcoin. That is why you can just buy a fraction of it. Therefore, you can buy BTC based on what you can afford.
DCA
A technique that some investors use to accumulate BTC is called DCA (Dollar Cost Averaging). You may have heard professional investors say “Buy low, sell high” when it comes to stocks or other cryptocurrency. In reality it is often hard to time the market, so you just buy at every moment you have an opportunity (provided you have the money to invest).
In DCA, you continue buying no matter what the price level is. In the long run, your investments will average out. One way to DCA is, like the pros say, buying the dip or buy when the price of BTC drops. You can also purchase some BTC when you have some money left over. Another way to DCA is when you have extra cash that you would rather put into investing. Nobody knows if Bitcoin’s value will continue going up, so buy more whenever prices go down or when there is an opportunity. As you continue to accumulate over time, it is possible to reach 1 BTC.
Sell Hard Assets (You Don’t Need)
Convert hard assets into capital to invest in Bitcoin. Let us be honest here. If you own gold which has the potential for higher value in the future, would you sell it to get Bitcoin? That is a question of whether you value Bitcoin more than your gold.
Other hard assets like precious metals, minerals and real estate are other options. The important thing to remember is to not have any regrets if this is the option you choose. To be practical, suppose you own a house that you really don’t need. It might make more sense to put it on the market and make use of the proceeds for other investments. Even if the hard asset is valuable, sell it only if you value Bitcoin more.
Retirement Fund
This idea is quite novel, and is something that requires plenty of due diligence. There are companies that offer retirement plans for BTC, and this is one way to get to 1 whole coin in the long run. If you are young and just entered the work force, this can be a good opportunity to get started. For those who are older or retired, this may not be ideal but worth exploring.
Even if you don't get to 1 BTC, the price of the asset increases over time. BTC could be worth $27K when you first invest in it. 10 years later the price could be much more.
The question is how committed to BTC are you? If you want to hold onto the asset you need to have full knowledge and belief in its value. Otherwise if you cannot handle the volatility of Bitcoin (which can suddenly dip by more than 50%), consider a more stable investment. Most Bitcoiners hold it in their belief that the value will increase as Bitcoin becomes more adopted.
There are also certain things to know about these plans. Since the company is handling your BTC, it is not under your full custody. This can be an issue for those who want to have full custody of their coins. By going to a retirement fund under a company, that is a third party (i.e. custodian) that is managing and handling your Bitcoin assets.
The problem here is if the retirement fund encounters issues (e.g. bankruptcy, government freeze order), that could put your crypto at risk. Since it is under their control, you will not be able to withdraw it if they suddenly stop operations.
Take this into consideration if you are concerned. If that is the case then it is better to just hold BTC without getting into a retirement fund or find a retirement fund that grants you full custody of your crypto.
Buy Other Cryptocurrency
This strategy is risky and more for traders. Buy smaller cap cryptocurrency that have potential to make massive gains. These are like your penny stocks, only better. Some traders are good at identifying projects where the price of the coin or token can surge. This requires some good old fashioned technical analysis and thorough research of the project.
When these cryptocurrency make a profit in returns, you can then invest that into Bitcoin. Some of these cryptocurrency increase by much higher percentages than Bitcoin, due to hype and early interest.
If you do believe in the project, you don’t have to sell it all. Keep most of it and sell off some to buy Bitcoin. Once again, this is recommended for experienced crypto traders or those who have an understanding of the risks involved.
Giveaway Contests
One way to get to 1 Bitcoin fast, is to join a giveaway contest. This is probably the strategy that requires the least amount of work on your part, and if you win you can give yourself a pat on the back. There are some crypto influencers out there who get generous from time to time. They are also promoting their channel or social media account, and one way to boost their audience is by having a giveaway. They may be giving away a whole Bitcoin, so that is going to definitely boost their engagement.
It is worth a try, but be extra careful. Some of these contests are straight up scams. If they request your private key to your wallet or ask you to give them any money, don’t do it. Never give your private key to anyone, because once they have it they can take your Bitcoin or other cryptocurrency. It also does not make sense to give money, even if it is for a pool that is part of the giveaway. Giving money is more like entering into a 'robbery'.
As long as the contest is giving away a grand prize that is not at your expense, it doesn’t hurt to join. Influencers with good reputation are more likely to be honest, so watch out for newcomers who just want to use this as a way to get views or target victims for their scams. You must also be cautious from giveaways that make promises that are too good to be true. There are chances that these can be rigged as well, so always read the details thoroughly to see if it makes sense.
Final Thoughts
Now that you have some ideas, what you choose to get to a whole Bitcoin is up to you.
The price of BTC can suddenly spike beyond affordable, once the market takes off. When BTC hits $100K per coin, you will need to put in more money to DCA unless the price of BTC comes down again.
The importance of strategies like DCA is that it returns more value over time, especially for an appreciating asset like Bitcoin. Let’s assume you do not ever get 1 BTC because it suddenly spiked to $1 Million per coin. You still have more value than if you had not used DCA. Although you were not able to get to 1 BTC, the price increase will benefit you because you were able to accumulate.
Photo Banner Credit: Jonathan Borba
Disclaimer: This is not financial advice. The opinion shared is for reference purposes only. Please DYOR always to verify information.
