Want to know how to invest online with $100? At first, the opportunities can be overwhelming, but you do not need a fortune to build your wealth. Four years ago, a millionaire investor posed this question by investing $100 into five different assets—individual stocks, REITs, cryptocurrency, gold, and index funds. Today we’re going to analyze the results and start to compare across five relevant elements: learning curve, passive income opportunity, tax efficiency, risk, and returns. Whether you’re using a laptop or phone, here’s how you can start investing.
1. Individual Stocks: high risk, high reward
Owning individual stocks means owning part of a company, such as Samsung or Apple. You’ll spend a lot of time learning about financial statements, market trends, and more, getting up to speed as you go, so the learning curve can be high. Passive income potential is strong from dividends, though not all stocks offer them. Tax efficiency comes with accounts such as a Roth IRA (USA) or Stocks and Shares ISA (UK) that protect profits from tax. Yet, the risk is high; Samsung fell from a $100 investment to $67.76 (dividends included) over four years—a 32.34% loss. Compare that with Nvidia, where $100 became $908. Results: It’s a wager that necessitates skill, not chance.
2. Real Estate Investment Trusts (REITs): Consistent Real Estate Rewards
Real Estate Investment Trusts (REITs) allow you to invest in real estate without owning the property yourself. The learning curve is moderate—easier than buying a house, but you need to understand types of property. And there is great passive income potential, since REITs must pay out 90% of profit as dividends by law. Tax efficiency is great in tax-advantaged accounts. Risk level: Medium; a $100 investment became $110.52 (including dividends), a 10.52 percent gain, despite a pandemic dip. Outcome: Dependable revenue stream with gradual increase
3. Cryptocurrency: The Wild Card
The massive upside of crypto like Bitcoin comes with big swings. Moderate learning curve—learn wallets, exchanges like Coinbase. There is moderate potential for passive income through staking or yield farming, but it is riskier. Tax efficiency is bad; trades and rewards are taxed and implemented in no sheltered way similar to ISA. The risk ratings are super high—$100 in Bitcoin went up to $652.24, a 552.24% return, but super violent volatility. Results: High reward, high risk
4. Gold: The Safe Haven
Gold serves as a safeguard for wealth during difficult times. The barrier to entry is minimal—purchase coins or ETFs on sites like Trading 212. No passive income potential; it’s a store of value, not an income provider. Good tax efficiency, especially with ETFs in tax-free accounts. Risk level: medium—$100 worth of investment grew to $140.10 ($40.10 or 40.1% return). Results: Steady, though far from spectacular.
5. Index Funds: The Best Bet for the Beginner
Index funds, which track market indices like the S&P 500, offer diversification. The barrier to entry is low—buy and hold with very little work. Dividends: Moderate potential for passive income. Tax efficiency is wonderful in tax-advantaged accounts. So the risk level is low: A $100 investment grew to $179.57, a 79.57% return. Outcomes: Straightforward, dependable expansion.
Start Small, Grow Big
You can begin with $100 today. Investing has been democratized with apps like Trading 212 that offer demo accounts and fractional shares. Time and compounding work in your favor—don’t wait to start.