A trader has been buying $30 worth of Bitcoin daily since 2016, using a Dollar Cost Averaging (DCA) strategy.
This investment strategy aims to reduce the impact of market fluctuations on purchasing decisions, by investing a fixed amount periodically in a specific asset (such as stocks or digital currencies) regardless of its market price.
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Over the past eight years, this trader’s daily investments totaled around $86,250. However, according to an update this trader posted to his X account on November 9, his Bitcoin portfolio was worth around $860,000, representing a massive return of over 900%.
Since then, the price of Bitcoin has risen to nearly $100,000, meaning his wallet is now worth over $1 million.
In his post, the trader shared an inspiring story of hard work, perseverance, and faith in Bitcoin despite skepticism from others. His story is a lesson in how ordinary people with modest incomes can achieve financial freedom if they stick to a sustainable and consistent investment strategy through dollar-cost averaging and endure short-term market volatility.
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Is it too late to implement a dollar-cost averaging strategy in Bitcoin?
It may seem that this trader has benefited from his early entry into the Bitcoin market, so the large returns he has achieved using the dollar cost averaging strategy are not surprising.
But now, with Bitcoin approaching $100,000, is it too late to make similar gains using the same strategy? The answer depends on your long-term view of Bitcoin’s price.
Many cryptocurrency experts believe that Bitcoin could one day replace gold as the world’s primary reserve asset, widely used by nations, multinational corporations, and institutional investors. This scenario could mean that Bitcoin’s market cap could reach tens of trillions of dollars, with the price of Bitcoin expected to rise to millions of dollars.
Therefore, over the coming years or decades, Bitcoin may continue to make gains of up to 10x or more from its current levels.
Therefore, a $30 daily investment strategy could continue to generate strong gains in the foreseeable future.