"Dollar Cost Averaging": This is how much a Bitcoin investment of just 10 dollars per day brings in

This is how much a Bitcoin investment of just 10 dollars per day brings in

Many new investors believe they have missed the "bitcoin train". But this is not true. Less than 10% of the world's population currently knows about Bitcoin. That means over 6 billion people in the world know nothing about Bitcoin. So the investors who are getting in now and think they have missed the boat are actually early adopters.

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That being said, dollar-cost averaging (DCA) has become an increasingly popular way to invest in the market. Dollar-cost averaging is the art of spreading your investment over a period of time, rather than buying everything in one go. In simple terms, let's say an investor has US$1,000 to invest in BTC. Instead of buying US$1,000 worth of BTC all at once, he could choose to spread the purchase over a period of time.

So the said investor might decide to buy the BTC over a period of 10 days. He buys $100 worth of BTC every day for 10 days. Or he buys $10 worth of BTC over 100 days. The idea behind this remains the same: the investment is spread out so that the impact of volatility on said investment is reduced.

How this works with Bitcoin

Bitcoin is at least a decade old at this point. So a lot has happened in the market. Given the huge growth, investors wish they had invested a large sum in the asset when it was cheap. But what if you had invested $10 in Bitcoin every day for the last five years? How much would you have now?

Well, if an investor had invested $10 in BTC every day for the last five years, the total amount would have grown to just over $18,300. But the amount in BTC would have been over $334,000. That gives a profit of more than 1,800% on the investment. So an investment of $300 per month would have resulted in a return of over $300,000 after deducting the initial investment.

If you went back even further than five years, the gains would be even higher. And if you go back ten years, investments would have increased by over 100,000% in the last ten years alone.

Bitcoin price to date

Bitcoins were literally worth nothing when they hit the market: $0. They were given away for free. You could mine them with an old laptop and have hundreds of Bitcoins in no time. But as people realised the benefits of the technology, the price of the asset skyrocketed.

This in turn led to BTC increasing in value over time. More and more people began to use the asset. But until the dark web portal "Silk Road" was disbanded, it was still not widely known. When federal officials blew up the website where BTC was the main currency, everyone wanted to know what kind of currency it was. Especially one that could not be traced.

The price then remained largely unchanged - until 2017, when one of the most remarkable bull markets took place. The price of BTC rose from under $4,000 to $19,000 between April and December 2017, reaching a new all-time high.

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At the time, it looked like BTC had peaked and would fall back to zero. But four years later, BTC is still on the rise - and $30,000 is now seen as the low point for the cryptocurrency. This shows how much Bitcoin can and will still grow in the coming years.

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