What Would Happen If You Bought Crypto Coins Every Month For a Year?
Reading about Bitcoin and how it jumps up and down could be heartbreaking because you did not put some little savings in a crypto exchange.
In Malaysia for example, you can open a cryptocurrency account with a few exchanges, the most popular if you may ask, being Luno.
You can start trading or invest with Luno with as little as RM50 though I don’t know what you will get with this little investment.
But what I am sure of is this:
Since crypto can still be volatile compared to stocks and bonds, the best thing you can do is spread out your investments and leave them alone. I have a friend that makes a lot of money day trading Bitcoin, but they also spend all day studying and making educated trades.
Nick Nolan
Nick Nolan is a writer who posts his articles on Medium.
SKYROCKET
He tells the story of how Bitcoin and other coins like Litecoin jumped up or I would say skyrocketed since 2017, the time when he bought some of the coins.
“The price of one Bitcoin had gone from around $1,000 at the beginning of 2017 to over $10,000 by November. Ethereum had similarly impressive gains, moving from $10 per coin in January to $400 in November. Litecoin had gone from $4 to $70 per coin,” he writes on Medium.
We are adapting his insightful article for the novice Bitcoin investor.
He says he bought around $50 of Ethereum and $25 of Litecoin. Bitcoin seemed too expensive for him, and for me to invest. But, though it’s another story, Bitcoin can be a majestic investment!
A year and a half later, the $75 investment went up to $120. A massive jump. Imagine if that was $750 dollars?
But the point of this article is what happens if you keep putting some extra cash that you have in bitcoin, every month for one year?
Two pieces of advice from the writer:
- Don’t invest in something you don’t understand
- Spend 15-20 hours learning about crypto, the Blockchain, and Bitcoin before you open your wallet.
What it means is to read up, read a lot and do not think that if you read a little and understood something about cryptocurrency then you are an expert. No, you will be disappointed.
LET’S INVEST
After you have gained confidence in Bitcoin, you can start opening your account in exchange to get a wallet. The wallet will hold what you buy and it will also help you to bring out your cash from your bank account to the cryptocurrency exchange. As easy as that!
The investment advice below is not a trick or a hack. It is a calculated risk.
This is how much you’d have if you bought $100 worth of Bitcoin every month for a year. $50 on the 1st and $50 on the 15th.
If you started in November 2020 and go from there until October 2021, you’d make a total of 24 investments and buy $1.200 worth of Bitcoin over a year. (See the table in the article on Medium please).
In November 2020, Bitcoin averaged 1 BTC = $13,737.11.
In October 2021, 1 BTC = $61,690.32.
If you left your $1,200 investment sit, it’d be worth about $1944. That’s a gain of $744, or a 62% increase, without taking a big risk.
Now you know why we are so fond of Bitcoin!