Saturday, March 2

Monthly investment of BRL 100 in Bitcoin in the last 5 years turned into BRL 85,000

One form of investment is becoming a favorite among many, DCA — Dollar-Cost Averaging, or average price in English. As an example, whoever bought R$100 in Bitcoin monthly in the last five years turned R$6,000 into R$85,960.00.

This investment technique has gained popularity for a few simple reasons. First, you don’t need to analyze graphics, optimizing your time and quality outside. In addition, small purchases can be made, such as 100 reais per month.

Although it seems a small amount, which can be easily saved by many, the habit of investing goes beyond money, arousing curiosity about the financial world in which we live.

Monthly investments in BTC show results

Some claim that the best time to buy BTC is when the market is down, or when your fear/greed indicator is pointing to this first sentiment. Despite that, guessing tops and bottoms doesn’t seem like a good option.

Because of this, those who acquired BTC monthly using the DCA strategy, or average price, in the last five years saw their portfolio grow 1,434%. In other words, monthly investments of R$100 for 60 months, totaling R$6,000, turned into R$86,000 today with BTC quoted at R$271,000.

DCA of R$100 in Bitcoin for 5 years. Source: Investing/Livecoins

The values ​​we used in this account were the opening price of each 1st of each month, using data from the Investing. That said, these values ​​can vary, up or down, depending on the day and time analyzed.

The first BTC

Those who invested R$315.00 per month, just over R$10 per day, in BTC over the past five years have already managed to accumulate the dreamed first Bitcoin. That is, that person now owns a fixed percentage of an asset that has a maximum bid limit, unlike fiat currencies.

Speaking of earnings in reais, earnings follow the same, of 1,434%. Despite this, it is worth noting that the total investment rose to BRL 18,900, while net profits rose to more than BRL 250,000 as the BTC is traded at 271,000 reais this Wednesday (29).

DCA of R$ 315 in Bitcoin for 5 years.  Source: Investing/Livecoins
DCA of R$ 315 monthly in Bitcoin for 5 years. Source: Investing/Livecoins

Although many suggest that you invest only what you cannot afford to lose, this market strategy consists of investing what you would spend on nonsense. Regardless of the amount, BRL 10, BRL 100 or 300 reais per month, what seems like little can turn into good money.

Finally, more than earnings, it is important to educate yourself financially. A good start is to know the origin of money, written by Nick Szabo, translated and summarized by Livecoins.