One Bitcoin Is Over $100,000 — 5 Ways New Investors Can Afford It

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Bitcoin's price has soared past $100,000, making headlines and sparking new interest among Americans who want to get in on the action. For many, the idea of buying a whole bitcoin at this price seems impossible. But, according to Anthony Georgiades, founder and general partner at Innovating Capital, 'You don't need to buy a full bitcoin to get started.'
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Most major exchanges and popular payment apps allow investors to buy fractions of a bitcoin, making it possible to invest with small amounts. New investors can also use traditional brokerage accounts, bitcoin ETFs, or even invest in companies involved in the crypto industry.
With so many options available, here are five smart ways to afford bitcoin when the price tag for one coin is sky-high.
Georgiades explained that 'fractional investing just means you're buying a piece of a bitcoin rather than the whole thing.' It is the easiest way for new investors to afford bitcoin, since you can buy as little as $5 or $10 worth. Bitcoin is divided into units called 'satoshis,' allowing even a $10 investment to give you exposure to this digital asset.
Most major exchanges like Coinbase, as well as apps like Cash App and PayPal, let you purchase small fractions, making it accessible for nearly anyone. Before you buy, compare fees and minimums on different platforms, since costs can add up with small purchases. Always use a reputable exchange and consider moving your bitcoin to a secure wallet as your holdings grow.
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Payment apps like PayPal, Venmo, and Cash App have made buying bitcoin as easy as sending money to a friend. According to Gadinsider, these apps allow you to buy bitcoin in small amounts, track your investment, and even transfer your crypto to another wallet. Georgiades said, 'Apps like Cash App, PayPal, and Venmo also make it easy to buy tiny amounts.'
To get started, just select bitcoin in the app, enter the amount you want to buy, and follow the instructions. You can store your bitcoin in the app or move it to another wallet for added security. This approach is ideal for beginners who want a simple, familiar way to start investing without dealing with complicated exchanges or wallets.
If you prefer a more traditional route, consider investing in a bitcoin exchange-traded fund (ETF) or exchange-traded product (ETP). These funds let you track bitcoin's price without having to manage wallets or private keys. Georgiades explained, 'You can invest through bitcoin ETFs or ETPs using a regular brokerage account.'
Bitcoin ETFs are easy to buy, offer low fees, and allow you to purchase fractional shares, making them accessible for smaller budgets. You will see returns that closely match bitcoin's price, minus the fund's expense ratio. This method is less risky than holding bitcoin directly, but you still need to be aware that the value of your investment will rise and fall with bitcoin's price.
Dollar-cost averaging (DCA) is a strategy where you invest a fixed amount in bitcoin on a regular schedule, like weekly or monthly. Georgiades described DCA as 'a simple strategy: you invest a set amount on a regular schedule regardless of Bitcoin's price.'
According to Forbes, this approach helps smooth out the ups and downs of the market and takes emotion out of investing. DCA can help you avoid the risk of buying at a market peak, but it does not protect you from a long-term drop in bitcoin's price. Be mindful of trading fees, as frequent small purchases can add up over time.
Another way to get exposure to bitcoin is by buying shares in companies involved in the crypto industry, such as exchanges like Coinbase or mining firms. Georgiades pointed out that 'another indirect way is by buying stocks in crypto-related companies like Coinbase or mining firms.'
You can also invest in blockchain ETFs, which focus on companies building the technology behind bitcoin. This method gives you exposure to the broader crypto ecosystem without owning bitcoin directly. While it's not the same as holding bitcoin, it can be a good way to participate in the industry's growth, especially if you are more comfortable with traditional stocks.
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This article originally appeared on GOBankingRates.com: One Bitcoin Is Over $100,000 — 5 Ways New Investors Can Afford It