💰 Stocks vs. Crypto: Where Should You Put Your First $100?

So, you’ve got $100 to invest—but you're torn between putting it into the stock market or taking a chance on cryptocurrency. Both offer unique opportunities (and risks), and both have turned small investments into serious returns for savvy investors.

Bettye

6/14/20253 min read

💰 Stocks vs. Crypto: Where Should You Put Your First $100?

So, you’ve got $100 to invest—but you're torn between putting it into the stock market or taking a chance on cryptocurrency. Both offer unique opportunities (and risks), and both have turned small investments into serious returns for savvy investors.

But which is right for you? In this post, we’ll compare the two side-by-side, breaking down returns, risk levels, accessibility, and what to expect as a beginner with just $100.

🔍 Quick Snapshot

📈 Option 1: Investing in Stocks

Stocks represent ownership in a company. When you buy a share (or a piece of one), you’re buying a stake in a business like Apple, Amazon, or Coca-Cola.

✅ Why Consider Stocks for Your First $100?

  • Stability: The S&P 500 has averaged 8–10% annual returns over time.

  • Ownership: You’re investing in real businesses with historical earnings.

  • Dividend potential: Some stocks pay you regularly for holding them.

🛠️ How to Get Started

1. Open an account on Fidelity, Robinhood, or M1 Finance.

2. Look into ETFs like VOO or VTI for diversified growth.

3. Consider dividend-paying companies like Coca-Cola or Procter & Gamble.

💡 Pro tip: You can buy fractional shares, meaning you don’t need to afford a full $400 share of Tesla—you can invest as little as $1.

📉 Risks

  • Stocks can lose value during market downturns.

  • Returns are not guaranteed in the short term.

🪙 Option 2: Investing in Crypto

Cryptocurrency is digital money built on blockchain technology. Popular coins include Bitcoin, Ethereum, and thousands of altcoins.

✅ Why Consider Crypto for Your First $100?

  • High reward potential: Some coins have exploded in value (e.g., ETH from $0.30 to over $2,000).

  • 24/7 trading: Crypto markets are always open.

  • Innovation exposure: You’re investing in emerging tech and decentralized finance.

🛠️ How to Get Started

1. Create an account on Coinbase, Kraken, or Gemini.

2. Start with a blue-chip coin like Bitcoin or Ethereum.

3. Secure your account with 2FA and consider using a wallet for storage.

💡 Pro tip: Don’t chase meme coins. Stick with crypto that has strong use cases and history.

⚠️ Risks

  • Wild price swings. It’s not uncommon for a coin to drop 20–30% in a single week.

  • Regulatory uncertainty. Crypto is still evolving and may face future restrictions.

🤔 Which Should You Choose?

Ask yourself these questions:

1. Do I want safer, steady growth or high-risk, high-reward potential?

  • → Stocks = safer, proven returns

  • → Crypto = volatile, but potentially explosive

2. Am I investing for the long term or short-term gain?

  • → Stocks = best for 5+ year strategies

  • → Crypto = best if you’re willing to actively monitor prices and trends

3. Do I have time to learn and stay informed?

  • → Stocks = easier to passively invest

  • → Crypto = requires staying updated on market sentiment and regulation

✅ Smart Strategy: Do Both

If you’re open to risk—but want balance—consider splitting your $100:

  • $60 in an S&P 500 ETF (stocks)

  • $40 in Ethereum (crypto)

This gives you both stability and upside potential without putting all your eggs in one basket.

💬 Final Thoughts: Pick What Matches You

There’s no “one right answer.” Your choice depends on your goals, risk tolerance, and interest level.

Stocks are great for slow, steady growth. Crypto offers exciting upside, but with serious risks.

Either way, investing your first $100 is a major step forward. Keep learning, start small, and grow as you go.

Best, Everyday Bettye

Are you ready? Let's start this journey! We would love to hear your comments!

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Free Resource: Beginner's Investing Starter Kit

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