Is this the right way to make a profit on this major crypto asset? Or does it give unsatisfactory results?
Saving Bitcoins on a regular basis is making regular Bitcoin purchases, whether it's once a month or once a week, with the right amount of money regardless of what the main cryptocurrency is at.
Let's say you commit to buying Bitcoin once per month for US$100, for three years. Is this the right way to make a profit on this major crypto asset? Or does it give unsatisfactory results?
Results of Saving Bitcoins Periodically
On an annual basis, the price of BTC has grown by around 60 percent throughout 2021.
According to Data Drive Investor's calculations, if you start saving regularly since the beginning of the year, your investment returns will be unsatisfactory.
Note, the average daily cost of Bitcoin is US$47,400 in 2021. The year-end price is US$46,100. Meanwhile, the current price is in the range of US$36,000.
Of course, this method of regular saving will give you a negative return, or in the average price range. This is certainly far from the annual growth of 60 percent, isn't it?
What's most surprising is the fact that your return on investment decreases even more when you save Bitcoin over several years as the data below shows:
To be sure, the returns to regular Bitcoin savings have led to a painful decline.
So, how do crypto billionaires make their fantastic profits in the long run?
Buying at the Right Moment
Just like a rocket that shoots, buying at the price when the rocket is on the ground is the answer.
Crypto billionaires and millionaires make the most of their profits by buying when prices are correcting, even crashing.
Remember back in 2018, when the price was around US$3,200, people who bought Bitcoins in that price range had gotten fantastic returns once the price rose to US$60,000 three years later, in 2021.
They don't make regular purchases, but instead make one or more big purchases at the lowest price they can get.
As a well-known phrase in the crypto industry, namely HODL, a pun on the word “hold” which means hold, the best way to earn money is to buy and hold it.
When the price has dropped very far from the high, this is usually an opportunity for savvy crypto investors to buy more and hold it in a few months or years.
