There was a time when people used to invest in gold regularly because it was growing nicely. Gold was considered as one of the highest growing instruments as compared to bank products. I even remember that my parents used to invest in gold monthly and I had also adopted this habit which I continued for many years unless I joined this crypto world.
I used to save a small amount with me and once it becomes big, go to the jewelry shop and buy Gold. So this way I was able to buy some gold couple of times in a year. All this I was buying through my saving and still holding everything I purchased. Although I am in profit, I never could sell anything because I am emotionally attached and want to keep it for a long time.
Once I entered in crypto space then I started learning more about it and realized its huge potential that if one can have a disciplined way to invest then for sure person can earn impressive returns in long run.
This chart shows the progress of my investment and there has been significant growth from Nov month onwards. Even now its better than the last quarter of the year 2020.
I started investing in Bitcoin daily through SIP and its also known as DCA (Dollar Cost Average). SO far this is the best way to invest in crypto and I can say this based on my experience. Its been one year and I have been investing regularly on a daily frequency. I invest only $1 which is not a big amount and that's the amount I can afford since I am not earning much because of pandemic lockdown.
My goal is to have the sum of $5000 which will quite a big amount for me but I have reached 20% of the goal. When the bitcoin price was about 60k that time it was approx 30%. With DCA we average out the price and now when we have bitcoin at 40k USD approx but still my average price is just 16k which is great, isn't?
As I already mentioned that I do invest only $1 every day and this is not a big amount but there has been no gap in this. I think that disciple is very important with investment and it has made me earn a return of 138% on my investment. I have invested $432 and the current value is more than $1k which is a great motivation to me and I am very happy.
There is a fixed buy that happens every day for $1 but when I see a dip of 15-20% in the market then I do buy through the lumpsum option and this way I invest $10. I have done it many times and this way also I buy the dip. Everyone wants to buy the dip but this way I am getting the dip with no extra effort and all this happens automatically.
Investment is something that we all do and the goal is always to fetch higher returns but choosing the right instrument is very important. I have considered Bitcoin as my digital gold and stopped investing in physical gold because here I can see way better growth of my investment and I will continue to do it for very long term. Maybe in the future, I increase the amount but as of now I am happy with it and sometimes I do ad-hoc buy as well when the price is down.
This is not a piece of financial advice in any way and please do your own research before doing any investment
Thank you so much.
Stay Safe