How Big Should I Trade?

I remember my early days of crypto trading vividly… I started…

I can't believe I'm saying this, but I wish I had invested in Bitcoin earlier. Not that I'm complaining about my gains—trust me, I'm grateful. But seeing how small early investments could've blossomed with time is mind-boggling.

For instance, if someone had put $1,000 in Bitcoin in 2013 at around $130 per coin (which seems like ages ago), that investment would be worth an incredible $2.1 million today, considering Bitcoin's current price of roughly $70,000. It's enough to make anyone's jaw drop.

It's especially interesting to compare this with investing in the S&P 500 at the same time. Of course, the stock market has also performed well. If someone had invested $1,000 in the S&P 500 in 2013, their investment would be worth about $3,000 to $4,000 today, depending on when in 2013 they invested. This is still a decent return, but it pales in comparison to Bitcoin's astronomical growth.

However, what's even more striking is that if someone had invested $1,000 in the S&P 500 at the same time and used a dollar-cost averaging strategy over the year to buy roughly $83 per month, their total investment by the end of 2013 would be $12,000. Yet, if they had invested that same $1,000 in Bitcoin at the beginning of the year and used a similar dollar-cost averaging strategy to buy roughly $83 per month in Bitcoin, their coins would be worth an astounding $2.8 million today.

It's clear that even with a dollar-cost averaging strategy to diversify investments over time, Bitcoin's performance is leagues ahead. It serves as a stark reminder that timing and asset class selection play a crucial role in investment success.

Of course, past performance isn't necessarily indicative of future results. But looking at the big picture, Bitcoin's long-term growth trajectory is nothing short of remarkable. It's no wonder that more and more people are turning to this digital asset class as a hedge against inflation and a potential vehicle for wealth creation.

As for me, I'm still marveling at those early Bitcoin prices and wishing I had started investing sooner. But hey, at least I'm here now, ready to continue this journey into the world of crypto with an open mind and a willingness to learn. Who knows what the next chapter holds? But I'm excited to see where this path leads.