What Happens If I Invest $20 in Bitcoin Today?

The value of major cryptocurrencies has risen thousands of times in the last ten years. At the very dawn of the crypto industry, it was looked down upon, but now many people would like to go back in time to buy digital gold at a throwaway price. We decided to look into why cryptocurrencies have risen in price so quickly, how much you could earn by buying them at the start, and whether it's worth investing in crypto now.

If I Invest 20 in Bitcoin Today: Understanding How Crypto Rises in Value

The world’s first cryptocurrency was Bitcoin, and its history accurately reflects the development of the crypto market. It began to be mined in 2009, and traded in 2010. At that time, it cost about $0.5. Bitcoin reached the psychological mark of $1 in 2011, when industry media and Twitter users paid attention to it. At the same time, other cryptocurrencies, such as Litecoin, began to appear. In 2011, Bitcoin even briefly broke through the $30 ceiling, but then fell to $0.17 due to a hack of one of the crypto exchanges.

Bitcoin reached the $1000 mark only in 2013. At the same time, blockchain and other cryptocurrencies, which are critical for the industry, were developing around the world. The new rise of the crypto market began in 2017. Then two American exchanges started selling futures on Bitcoin, and by the end of the year the cryptocurrency’s exchange rate grew 20 times to $19 thousand, and the capitalization of the global crypto market - 34 times. Despite this growth, Bitcoin's market cap remains significantly smaller compared to gold's market cap, highlighting its potential for future investment.

After a strong failure in 2018, Bitcoin and the crypto market grew steadily. What drew even more attention to them was the pandemic. At that time, crypto was becoming more expensive while many traditional assets were getting cheaper. Bitcoin reached its maximum values in November 2021, breaking through the $69 thousand mark. However, after that the cryptocurrency rushed downward, having fallen threefold in price by the summer of 2022. Factors influencing Bitcoin's price include market speculation, volatility, and external events that can significantly impact its value.

Bitcoin’s early days were marked by a lack of understanding and skepticism. However, early investors who believed in its potential have achieved significant wealth, illustrating the financial success that can come from investing in Bitcoin. Researchers link the dramatic rise of cryptocurrencies to several reasons. First, their popularity is skyrocketing. The more people start using crypto, the more new users will potentially want to use it too. Popular cryptocurrencies are easy to trade on exchanges, and more and more merchants are accepting them as payment. Therefore, beginners will be more willing to invest in them, thus supporting their growth.

Second, investment in the crypto market reflects people’s faith in blockchain technology. Theoretically, in the future, it can be used in many areas of life like agriculture and logistics. Investors expect the crypto to rise in value because the technology it is based on will become more popular.

Finally, we should not forget about speculation and other immediate factors. Careless statements of stars and entrepreneurs, consolidation of ordinary Internet users and clever manipulations in the market can dramatically change the value of this or that cryptocurrency.

Early Days of Bitcoin

Bitcoin’s early days were marked by a lack of understanding and skepticism from the general public. Created in January 2009 by an individual or group of individuals using the pseudonym Satoshi Nakamoto, Bitcoin was initially met with skepticism. The first recorded Bitcoin transaction occurred in October 2009, and the New Liberty Standard website established the first exchange rate, valuing one Bitcoin at $0.00099.

Online exchanges didn’t launch until 2010, and Bitcoin’s lowest price was $0.04865 on July 14, 2010. Despite the initial uncertainty, Bitcoin’s potential for exponential growth and its limited supply of 21 million units made it an attractive investment opportunity for early adopters.

Factors Contributing to Value Rise

Several factors have contributed to Bitcoin’s value rise over the years. One of the primary drivers is its limited supply, which makes it a hedge against inflation. The purchasing power of fiat currencies like the US dollar has decreased due to inflation, making Bitcoin an attractive alternative. Additionally, the security and decentralization of the blockchain technology that underlies Bitcoin have made it a trusted store of value. The increasing adoption of Bitcoin by mainstream financial institutions and the growing demand for cryptocurrencies have also driven up its value. Furthermore, the potential for substantial gains and the fear of missing out (FOMO) have led many investors to buy Bitcoin, further driving up its price.

How much could you make on it?

To calculate the potential return, let’s assume you bought the cryptocurrency the same year it hit the market and sold it yesterday. Here’s what that would work out to be, using five well-known tokens as an example. The current value of Bitcoin has seen significant changes over time, reflecting its volatile yet potentially lucrative nature.

Bitcoin. In 2010 it was worth $0.5, and on March 27, 2025 it was worth $87,200. Accordingly, it has appreciated 147,000 times in value since then. This means that if you had bought one Bitcoin in 2010, you would have made a profit of $87,195. If you had bought ten bitcoins - it would be $872,000. And we have not yet taken into account the profit from the difference in exchange rates. Investing in Bitcoin today could still yield substantial returns, given the ongoing interest and current market conditions.

Litecoin. This token appeared on exchanges in 2013. At that time it was worth $3. Now Litecoin is trading at $90 - 30 times more expensive. Thus, buying only ten pieces in 2013, you would have earned $870 net. And if you bought 100 Litecoins, you would get $8,700. Again - without taking into account the exchange rate difference.

Ethereum. This token began trading on the exchange in 2015. That year, it was worth an average of $1.1. Now it’s valued at $1800 a piece - 1600 times more expensive than when it started. Accordingly, just one Etherium from 2015 would now bring $1,798.9. Accordingly, ten tokens could earn $17,989.

USDT. This is an abbreviated name of the Tether stablecoin. Its peculiarity is that its rate is pegged to the US dollar. Since its appearance in 2014, it cost $1. In 2022, it was falling in value, but has already returned to parity with the dollar. It turns out that if you bought Tether in 2014, you would have made zero in dollars.

Dogecoin. This meme cryptocurrency launched in 2013 and was worth less than one cent at the time: $0.00095. Dogecoin’s value peaked in 2021. Then it reached as much as $0.73, and the project was even supported by Ilon Musk. However, since then, the token has become ten times cheaper and now holds at a decent level of $0.07. That’s still 73 times more expensive than it was at launch. If you believed in Doga in 2013 and bought 10 thousand tokens, now you would earn $684..

Does it make sense to invest in bitcoin investment?

Even now, it’s not too late to become a crypto investor. The market continues to develop, although it is periodically shaken. Just now, many tokens are regaining their positions after a strong fall, so theoretically they can bring profit. History shows that after each failure, the cryptocurrency recovered and reached new records. The recent approval of a Bitcoin ETF marks a significant milestone in the acceptance of Bitcoin by traditional financial institutions, suggesting a growing trend towards more institutional investment in digital assets.

In addition, investments in crypto have become more risky due to uncertainty in the economy. Such investments are not suitable for those who fear for their income. Moreover, the authorities of the Russian Federation and other countries still treat cryptocurrencies with suspicion and are in no hurry to legalize them. Therefore, investments in crypto should be approached with particular caution now.

For those who are not afraid of these challenges and are confident in their abilities, the following tips can help:

• Pick reliable tokens. Look at which cryptocurrencies are leading the world in terms of capitalization. Those tokens that are used by many investors have high capitalization rates. This means that they can potentially attract even more users and grow in value.

• Have a strategy. Calculate how much return you would like to get and for how long. Determine the maximum loss you will be willing to incur. When trading crypto, do not give in to emotions and follow a plan.

• Don’t invest all your money. Cryptocurrency is a high-risk instrument. Its value often fluctuates, and investing in it can bring losses. Therefore, you should only invest free funds, having previously created a financial safety cushion. And certainly not to borrow money to buy cryptocurrency.

• Study the crypto market. The better you understand the industry, the more effectively you can invest in it. Read thematic news and analytical articles, share your experience with other investors. This way you will not only get new opportunities to earn money, but also expand your horizons.

• Be patient. As our calculations have shown, investing in crypto can yield great returns over the long haul. Be prepared for the fact that your tokens may drop in value for a while. But do not be afraid to give up cryptocurrency if you realize that it has no prospects. It is better to record a small income or a minimal loss than to lose all your investments in pursuit of fabulous profits. Having a very patient mindset is crucial, as those who invested early and maintained a long-term perspective have reaped substantial profits.

Bitcoin investing tips

If you’re planning to invest in bitcoin in 2025, there are a few things you should keep in mind to help maximize the return on your initial investment. Understanding the process of buying Bitcoin is crucial, especially for novice traders. Utilizing technical analysis and various indicators can help identify optimal entry points for making Bitcoin purchases.

Furthermore, the potential for substantial gains is significant, but it’s essential to be aware of the risks involved. The long-term outlook for Bitcoin prices, based on historical data and market cycles, suggests substantial price increases over the next several years. Firms like Galaxy Digital have projected specific anticipated prices for each year up to 2040, indicating a promising future for Bitcoin investments.

How to choose a reliable cryptocurrency exchange

One of the most important things to consider when investing in bitcoin is choosing a reliable crypto exchange. Everyone is hearing about the collapse of Mt Gox and FTX. Investors only had to watch their life savings disappear overnight when over 800,000 bitcoins were stolen from the Mt Gox exchange in a hack in 2014.

FTX, another major exchange, went bankrupt in November 2022 after Coindesk reported alleged abuses, raising doubts about the exchange's solvency. These incidents emphasize the importance of choosing an exchange to invest and store your bitcoins.

Transaction fees

Another important factor to consider when choosing an exchange for your bitcoin investment is transaction fees. These fees can vary significantly from one exchange to another and can depend on the size of the transaction or level of activity. Transaction fees accumulate over time and have a significant impact on the profitability of your investment. Therefore, it is important to compare the fees charged by different exchanges and their fee structure before making a decision.

Security Risks and Measures

Investing in Bitcoin carries security risks, including the potential for hacking and theft. However, there are measures that can be taken to mitigate these risks. Using a trusted exchange like Coinbase or Kraken, which offer features like two-factor authentication (2FA) and insurance for cryptocurrency holdings, can help reduce the risk of hacking. Additionally, using a hardware wallet like Ledger, which stores private keys offline, can provide an additional layer of security. It’s also essential to keep learning about blockchain technology, wallets, and taxes on crypto investments to stay informed and make informed decisions.

How to store bitcoins and avoid security risks

Properly storing your assets will protect your investment, each option has its pros and cons, most notably security and convenience.

Here are a few ways to store bitcoins:

• Crypto exchanges : many crypto exchanges offer bitcoin storage services on the platform. Despite the convenience and quick access to assets, exchanges can be vulnerable to hacking.

• Bitcoin wallets : as software, these wallets help store your bitcoins and allow you to send and receive transactions in bitcoins. These include desktop wallets, mobile wallets and web wallets.

• Hardware wallets : These are physical devices that store your bitcoins offline. They are renowned for their security, making it difficult for hackers to access an investor's bitcoins.

• Paper wallets : These are essentially printouts of your public and private keys that can be used to store bitcoins offline. This kind of wallet is the cheapest method of storage, but also the most unreliable - the sheet(s) can easily be lost or stolen.

Regardless of which storage option you choose, it's important to keep your bitcoin safe and be sure to follow best practices for storing and protecting your bitcoin.

Volatility and Risks

Bitcoin’s price has seen dramatic rises and falls throughout its history, making it a volatile investment. The price fluctuations can be substantial, and investors may experience significant losses if they buy at the wrong time. However, for those with a very patient mindset, Bitcoin has been incredibly profitable. It’s essential to consider your financial situation and risk tolerance before investing in Bitcoin. Dollar-cost averaging (DCA) is a strategy that involves investing small amounts of money at regular intervals, which can help reduce stress and improve investment outcomes. Additionally, it’s crucial to stay informed about market trends and news that may impact Bitcoin’s price.