Think you've already missed the Bitcoin boom? Think again! A regular investing strategy can still yield big returns!
Are you one of those who think that investing in $BTC is no longer worthwhile these days? If so, this article is for you!
Despite its historical performance, Bitcoin remains the best performing asset and a promising investment today, and thanks to strategies such as Dollar Cost Averaging (DCA), it doesn't even require significant capital to make an initial investment.
Bitcoin consistently outperforms traditional investments such as gold, the Dow Jones, or giants in the technology sector like Apple. This means one thing - it's never too late to join the bitcoin revolution, even if you're investing 100 crowns or millions per week.
The power of the DCA strategy
The DCA strategy, also known as the regular investing strategy, involves investing a fixed amount on a regular basis, regardless of the price of the asset.
The strategy thus eliminates emotional decision making and reduces the impact of market volatility. By buying consistently, investors can benefit from market downturns while building their portfolios steadily.
The following example describes the benefits of a DCA strategy. Consider how the strategy performs over time:
6 months: an investment of $25 per week in Bitcoin would turn $675 into $985.56 - a return of 46.01 %. In contrast, gold rose 5.82 %, Apple rose 10.32%, and the Dow Jones rose 7.34 %.
1 Year: The value of a $1,325 investment in Bitcoin would now be $2,140.20, a 61.52 % return. Meanwhile, gold is up 14.50 %, Apple is up 22.80 % and the Dow Jones is up 11.36 %.
Year 2: A $25 weekly investment totaling $2,650 would now be worth $7,145.42 - a 169.64 % return. Gold is up 26.56 %, Apple is up 36.22 % and the Dow Jones is up 21.13 %.
4 years: a long-term investment of $5,250 in Bitcoin would now be worth $14,877.77, a 183.39 % return. Over the same period, gold rose 37.26 %, Apple gained 54.05 % and the Dow Jones rose 27.32 %.
Across all time frames, bitcoin has significantly outperformed traditional assets and offers compelling returns, even in short-term periods.
The myth of market timing
Historical data shows that the DCA strategy minimizes market timing risks while enhancing returns. Thus, even small regular investments can grow significantly as the value of Bitcoin increases.
Recently, Bitcoin has been increasingly perceived as a reliable store of value in a volatile economic environment. Thus, with growing institutional acceptance and technological advances, Bitcoin's long-term outlook remains positive.
