Is It Too Late to Invest in Bitcoin? How to Make Your First Investment Today

Jan. 27, 2025

Author: Bitcoin Magazine Pro Team


Many people hold the misconception that the time to invest in Bitcoin will pass them by. If you’re one of them, you might wonder, “Is it too late to invest in Bitcoin?” This question is ubiquitous as Bitcoin’s price trends upward to all-time highs above $105,000. For those looking to make their first Bitcoin investment,  it can be challenging to know when to enter again—especially as prices continue to increase. In this article, we’ll explore the answer to the question, “Is it too late to invest in Bitcoin?” We’ll discuss the current state of Bitcoin annual returns, what might come next, and how you can get started with confidence.

One way to confidently navigate Bitcoin’s current market is with Bitcoin Magazine Pro’s comprehensive Bitcoin analysis. Our expert analysis will help you understand the current state of Bitcoin so you can make your first investment with confidence. 

Is it Too Late to Invest in Bitcoin?

bunch of coins - Is It Too Late to Invest in Bitcoin?

Bitcoin continues to prove itself as a superior investment option compared to traditional assets, whether you have $25 a week to spare or millions to allocate. For years, Bitcoin skeptics have watched from the sidelines, waiting for a moment to join the ride, only to convince themselves that they’ve already missed the boat. Nevertheless, the reality tells a different story. 

Not only is it not too late, but if you’ve managed to stay out of the BTC race to date, you may fear you’re too late. And depending on your financial goals, risk tolerance, and timeline, you might be right.

Bitcoin's Appeal Across Age Groups

To some extent, Bitcoin is a generational phenomenon. Among millennials, “everybody knows someone who’s become a Bitcoin millionaire,” said Craig J. Ferrantino, president of Craig James Financial Services in Melville, New York, speaking to USA TODAY earlier this year. If you’re a decade or two older, you may not know anyone who can define BTC convincingly.  

Why Should You Invest in Bitcoin? 

“It is not too late to start investing in Bitcoin,” said Caleb Silver, editor-in-chief of Investopedia. But ask yourself: Why? Profiting from Bitcoin’s rise “may be your primary reason,” Silver said, “but it's important to understand that Bitcoin is highly volatile, unregulated and widely misunderstood.” 

Bernd Schmid, contributing analyst at The Motley Fool, more or less agrees. “It’s not too late to start investing in Bitcoin,” he said, “as long as you have a long-term perspective. Bitcoin adoption is today where internet adoption was in the late 1990s and early 2000s.”  

A Word of Caution from Investment Experts

Bryan Armour, director of passive strategies research for North America at Morningstar Research Services, preaches caution with Bitcoin. “It’s not too late, but that doesn’t mean it’s necessarily a good investment,” he said.

Jonathan Swanburg, a certified financial planner in Houston, is even more skeptical. “I’m not a Bitcoin guy,” he said, “but if you didn’t like it at $20,000, I think you need to look at why you would possibly like it at $100,000, except for FOMO (fear of missing out). So, yes, I do think it is too late.”  

Is the Trump Effect Over? 

Has the 'Trump effect' played out? Will Bitcoin rise further? “Yes and no,” Schmid said. “Yes, because the possibility of a Bitcoin-friendly administration was initially undervalued and is now priced in,” meaning that Bitcoin’s value already reflects the Trump effect. “No,” Schmid said, “because we’re still waiting for concrete regulatory developments” in the second Trump administration.

Silver agrees. “While the election effect on the price of Bitcoin may have played out for now,” he said, the Trump administration is gearing up to create an entirely new regulatory ecosystem around this asset class by appointing David Sacks, a former PayPal executive, as the nation's first Bitcoin czar, and nominating Paul Atkins, a Wall Street veteran, as SEC chairman. 

“Those moves, and Trump's campaign promise to make the U.S. the 'Bitcoin capital of the world,' set the stage for Bitcoin to become more widely available to retail investors, which could boost prices.”  

Why Patience is Key When It Comes to Bitcoin 

While 2025 can potentially deliver notable gains, newcomers must understand that the best opportunities often arise during its cycles' quieter, earlier stages. Current price levels suggest that we may be closer to the peak of this bull market than it was at the beginning. A bear market will likely follow if history repeats itself, with the price dropping 70% to 80% from its highs. 

Volatility and the Risk of Panic Selling

This inherent volatility makes short-term strategies risky, particularly for new investors. Buying during periods of heightened speculation often leads to panic-selling during inevitable corrections. To mitigate these risks, it is imperative to approach Bitcoin from a long-term perspective. 

If you are going to buy it, hold it for a little more than a complete halving cycle. Data shows that any Bitcoin held for at least six years has never returned less than 22% (in most cases, it's more). This is mainly due to the semi-predictable impact of its halving cycles. 

Holding Through Halving Cycles for Maximum Returns

The more halving cycles you hold through, the greater the chance you stand to benefit from reductions in supply compounding. The bottom line is that instead of chasing quick profits, focus on steady accumulation and holding through cycles since this has proved to be a more effective strategy.  

Bitcoin's Unique Long-Term Potential 

So, is it too late to buy Bitcoin? Not. But if you're hoping for a quick buck, look elsewhere since the days of Bitcoin delivering exponential, life-changing returns in mere weeks are likely behind us. Instead, when we zoom out a bit, it is clear that its best days are still ahead. You will invest in a unique asset when you invest in Bitcoin for the long term. 

A Unique Value Proposition in a World of Fiat Currency

With a fixed supply of 21 million coins, Bitcoin is inherently deflationary, starkly contrasting to fiat currencies that can be printed in unlimited quantities. Bitcoin's decentralized network and unmatched security give it a unique edge as a store of value in an increasingly digital world. These traits could drive increasing demand from corporations, financial institutions, and even governments in the coming decades, solidifying it as a cornerstone asset for global portfolios.  

What to Do Now If You Plan to Invest in Bitcoin 

If you plan to invest in Bitcoin, approach it with the mindset of holding for multiple years. Adopt a strategy that prioritizes consistent investment, such as dollar-cost averaging, and aim to accumulate it during the earlier stages of its cycles rather than at speculative peaks. The journey of investing in Bitcoin is just as important as the destination. 

For Bitcoin, its full potential as a transformative financial asset -- is still far off. By focusing on patience, discipline, and understanding the asset's unique value, you can benefit from its long-term growth rather than just trying to chase short-term gains.

Related Reading

What if You Want to Buy Bitcoin but Don’t Know How?

btc ready - Is It Too Late to Invest in Bitcoin?

Buying your first Bitcoin can feel overwhelming, especially if you are not tech-savvy or have limited experience with finance. The good news is that there are different ways to buy Bitcoin, and you don’t have to be an expert to get started.

“Individual investors can tiptoe their way into investing in Bitcoin,” Silver said, “by opening an account with an online broker and buying individual tokens and coins by a dollar amount.”  

Accessible Entry Points to the Market

In other words, you don’t have to pony up $100,000 to buy Bitcoin. “Alternatively, they can purchase spot Bitcoin ETFs, which track the price of Bitcoin through many of the largest online brokers,'' Silver said. "While these ETFs don't give investors ownership of the actual digital coins, they track the price closely, and trade throughout the day, like a stock. When selecting a spot Bitcoin ETF, investors should focus on the largest funds with the most assets under management, liquidity, and low expense ratios.”

Armour offers specific ETF recommendations: iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund “come from familiar brands, have low costs, and are easy to trade,” he said. Bitwise Bitcoin “comes from a company more embedded in the Bitcoin world, if that’s important to an investor.”

Swanburg cautions investors against venturing too far into the BTC wilderness. “I'd probably go with the ETF, just to avoid the logistical and estate nightmares of trying to hold BTC outside of traditional investment accounts,” he said. “Although I don't recommend it to anyone.”  

How Much Should You Invest in Bitcoin?

“For investors new to Bitcoin, or any asset class, don't invest more than you can afford to lose,” Silver said. “All Bitcoins speculative and risky assets that are still unregulated. While it's easy to get caught up in the hype,” he said, the downside of Bitcoin is “wild volatility. Risk no more than 5% of your portfolio, if you are just getting started.”

Armour agrees on the 5% limit. “Our research shows that bitcoin’s volatility begins to overwhelm a portfolio” if you invest more heavily,” he said. “That figure could serve as a reasonable limit for long-term investors.”

Swanburg, again, offers the contrarian view: Invest “as much as you would be comfortable investing in a Beanie Baby collection, back in 1998.”

Related Reading

Save 30% on Bitcoin Magazine Pro's Bitcoin Analysis Tool With Our Annual Plan

Bitcoin Magazine Pro offers a comprehensive set of analytics tools, designed to help investors and enthusiasts better understand Bitcoin through data. The platform provides a wide range of free, regularly updated Bitcoin charts, each accompanied by detailed explanations to make complex information accessible. 

Exploring the Benefits of Bitcoin Magazine Pro

For those looking to dive deeper, paid tiers offer features like chart alerts, exclusive indicators, and in-depth market reports. Whether you're a curious Bitcoin investor wanting to grasp the factors influencing Bitcoin's price, or an analyst eager to expand your knowledge, Bitcoin Magazine Pro aims to provide clarity and insights to support more informed decision-making in the Bitcoin space. 

Save 30% on Bitcoin Magazine Pro's Bitcoin analysis tool today when you sign up on our annual plan!

Related Reading

 

Any information on this site is not to be considered as financial advice. Please review the Disclaimer section for more information.