How Much Bitcoin Should You Buy?

There’s no universal answer — but there’s a framework for thinking about it.

The Key Variables

1. Your investment horizon
Bitcoin is a long-term asset. If you plan to hold for under 2 years, size your position conservatively or consider not buying at all. If you're a 4-10 year holder, you can take more meaningful position.

2. Your risk tolerance
Bitcoin can drop 70-80% in a bear market. If a 70% drawdown would cause you to sell or cause serious financial harm, your position is too large.

Rule of thumb: Only hold Bitcoin you can afford to see cut in half for 2+ years without panic-selling.

3. Your total investable assets
Most financial advisors suggest 1-10% of investable assets in Bitcoin:

$50,000 investable → $500-$5,000 in Bitcoin
$200,000 investable → $2,000-$20,000 in Bitcoin
$1,000,000 investable → $10,000-$100,000 in Bitcoin

Starting Small is Fine — Actually Recommended

Most successful Bitcoin holders started with a small amount ($100-500) to understand the mechanics before committing more.

Starting small lets you:

Learn how wallets work
Understand how to send/receive
Experience holding through small price swings
Build conviction before sizing up

The DCA Approach

Instead of buying one lump sum, consider buying a fixed amount monthly:

$200/month over 2 years = $4,800 invested
Removes timing pressure
Builds position systematically

Buy Bitcoin from $20 at 1Bitcoin.ca →

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