I have been thinking lately about how investing in bitcoin is actually a great idea but also it can be really hard to make profit off bitcoin if you're a small Investor
Imagine this:
If bitcoin is at $64k and me as a small investor bought with $1k, for me to make 100% profit bitcoin will have to hit $128k, that is still feasible
But if I'm hoping to make a 200% profit on my investment bitcoin price will have to get to $256k, how achievable is that ? And if it's achievable how long is it going to take
Which brings me back to my question
Can small investors actually make good profit with bitcoin?
Or are there other ways to make money with bitcoin as a small investor rather than just buy and hold?
Based on what your expectations are with a $1k investment capital, it simply means you are looking for a quick way to get rich, and of which Bitcoin at this current stage is no more in that phase. A $1k investment as at 10 years back is a very large sum of capital to invest, and those who did then are on good profit now. So, if you invest $1k now and patiently wait for 5 years, you'll see positive feedback from the market, but if you want to see quick returns in a short period of time, you can try altcoins when the market is on a bullish trend or you can try gambling. One good bet can give you 100% or more, but when it comes to investment, any form at all, you need to be patient and wait for things to grow.
Personally, I think that it is a bit ridiculous for guys to approach bitcoin with ONLY a one time investment into it (such as a lump sum) without follow up.
So what might we imagine $1,000 to represent in terms of a DCA amount? Is it 10 weeks of DCA at $100 per week? or is it 20 weeks of DCA at $50 per week? or maybe it is 50 weeks of DCA at $20 per week? What kind of a regular income should we presume the guy to have? Maybe we can choose the option that $1k equals around 20 weeks of DCA, so then maybe we can presume that the guy has the ability to buy $50 per week worth of bitcoin on an ongoing basis.
And, yeah @osasshem, you suggested a 10 year timeline, so what was the BTC price 10 years prior to OP's posting? o.k. I did a quick look up, and of course there was a price spike in mid 2016 from the end of May from $420 through the summer to around $700, and then a pretty decent correction back down to $500-ish due to the Bitfinex crash situation, so let's just say that OP got stared with various purchases of around an average of $600 per BTC so then he was pretty much able to start out with around 1.67 BTC from his first $1k worth of bitcoin, and then lets say that he figured out how to invest right around $50 per week from July-ish 2016 until now, so then it could have had been quite likely that over the next year he would have had invested $2,600 and then over the next 10-ish years he would have had invested right around $26k. .which we can also look that up from BTC DCA calculators and see that he may well should have had been able to accumulate another 4.44 BTC or even slightly more than that... .
so then if we figured that he might have had invested a total of around $27k, then right now he would have something like 6.11 BTC, which surely many of us would consider to be a pretty good place to be for someone who had done a lump sum of $1k and then $50 per week over 10-ish years. The supplementation of the $1k initial investment with DCA caused the overall investment to be much better, especially for a guy who might have had a 10 year or longer investment time horizon. There are not too many investments (that are open to everyone and anyone) that could have had performed better than bitcoin in the past 10-ish years... especially for any normal person off of the street to be able to jump into bitcoin at his own personal budget level.
