The Power of Dollar-Cost Averaging: How a $5 Monthly Bitcoin Investment Over 2 Years Grew by 25%

After calculating based on the historical Bitcoin prices over the last 2 years, here’s what we found:

• Total amount invested: $120 (investing $5 every month for 24 months)

• Total Bitcoin accumulated: 0.004316 BTC

• Value of accumulated Bitcoin at the current price ($35,000): $151.06

Analysis

With this Dollar-Cost Averaging strategy:

• You would have invested a total of $120.

• The current value of your Bitcoin holdings would be approximately $151.06.

• This represents a gain of around 25.88% over the 2-year period.

Conclusion

Investing small amounts consistently in Bitcoin, even during periods of high volatility, could yield positive returns over time. The DCA strategy helps mitigate the risk of poor timing and allows investors to benefit from market fluctuations. While past performance is not a guarantee of future results, this method is often considered a safer approach for those looking to invest in volatile assets like Bitcoin. 

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