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If you bought $3 of Bitcoin a day since 2017, how much would you have?



If you decided to skip your morning coffee and bought a little bit of Bitcoin instead, how much would you have? 

It’s no secret that DCA is one of the preferred strategies of investing in crypto; automatically buy a set amount regularly and forget it even exists. But how well does it actually perform?

Let’s find out!

What does DCA mean?

DCA stands for ‘dollar cost average’ which basically means you are buying a certain asset for its average price on the long run by putting a little bit of money aside at a regular interval. If we expect an asset will rise in value in the future, and we acquire it for its average price over, say, the last 5 years, then our asset will be worth more than we put in.

The idea is that this is a relatively safe principle that does not rely on your emotions or FOMO (fear of missing out), but rather builds your portfolio using a solid, logical strategy. It prevents panic selling in a bearish market or buying a lot at high prices.

Why $3 of Bitcoin a day?

The idea is that instead of spending the money on your morning coffee on your way to work, you buy a seemingly insignificant bit of crypto each day. But over time, you start to slowly acquire a more and more crypto which starts to really add up.

In addition to this, we’ll also explore the same thing but with Ethereum as the crypto of choice (spoiler: DCAing into ETH yielded even better results).

Methodology

This is just for reference for those interested. If you don’t care how the calculations were done, move on to the next section :)

The calculations were performed using Python and the Coingecko API. The daily prices of Bitcoin were arranged into a numpy array. From this, a loop calculated the amount of crypto you would get for $3 and added that to a counting variable. The final value of the variable was the total amount of crypto that the person would have today, the 19th March 2022.

Results

Bitcoin

From 1st January 2017, there has been a total of 1903 days including today. Buying $3 a day means a total of $5709 spent buying Bitcoin.

A total of 1.0166 BTC would have been acquired.

At today’s market price of around $41,750 (rather, as of writing this article), the value of the Bitcoin would be around $42,440.

At Bitcoin’s all-time-high price of $69,044, the total value of the Bitcoin acquired would have been worth $70,190.

Ethereum

What about Ethereum? ETH is nowadays considered a blue-chip crypto and that’s not for no reason.

Once again, if you spent $3 buying Ethereum, you would have spent a total of $5709.

A total of 39.741 ETH would have been acquired.

At today’s market price of around $2,954, the value of the Ethereum would be worth around $117,390.

At Ethereum’s all-time high price of $4,878, the value of the Ethereum would be worth $193,856.

Cryptocurrency

Amount Spent

Amount of Crypto

Value Today

Value at ATH

Bitcoin

$5709

1.0166 BTC

$42,440

$70,190

Ethereum

$5709

39.741 ETH

$117,390

$193,856

Conclusion

The numbers speak for themselves. Dollar-cost-averaging works and is perhaps the best method for most people to invest given how simple it is and that a lot of exchanges offer this feature.

Bitcoin, at today’s prices, yielded a profit of $36,731 and Ethereum a profit of $111,681. Now perhaps these aren’t incredible, life-changing figures, but this remember this is just over the last 5 years. Who knows that the next 5 will bring?

In any case, I think it’s fair to say quitting your caffeine addiction has never been more profitable :)



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