What If You Invested $25 a Week in Bitcoin (BTC) Since 2017?

With the price of Bitcoin hovering around 93k, there isn't a shortage of conversations about its consistently rising value.

If you had started dollar-cost averaging (DCA) into Bitcoin in 2017 by investing $25 every week, your total investment would be around $10,450 as of now. This investment would have yielded approximately $16,946.00 in gold or about $15,358.23 in stocks.

But wait, there’s more! For Bitcoin, the return would be a staggering $133,689.39! That’s 8 times more than the returns of stocks and 7 times more compared to gold. This ‘what if’ scenario showcases the immense growth of Bitcoin over the years and the potential of dollar cost averaging.

If you’re curious and want to explore different time spans and investment levels, you can check out this chart.

What is DCA good for?

The main purpose of DCA is to reduce the impact of market volatility. By investing a fixed amount at regular intervals, you can smooth out the ups and downs of the market.

It’s also a great strategy for beginners as it simplifies investing, making it accessible even to those without extensive market knowledge or experience. Plus, it eliminates the need for constant market monitoring and worrying about whether the market is performing well.

This strategy became so popular that a recent survey showed that a substantial 59% of crypto investors prioritize dollar-cost averaging as their primary investment strategy.

However, it’s important to note that DCA doesn’t guarantee anything. If the market consistently rises during your investment period, you could miss out on higher returns. So, it might not be the best fit for everyone.

If you decide to try out DCA in crypto, here’s a quick guide:

Start by selecting the cryptocurrency you want to invest in.

Next, determine your investment budget and the frequency of your contributions.

Finally, ensure you conduct a thorough assessment of your financial situation and any necessary research.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company