How a coffee a day gave him a 41% return in 1 year

The experiment: investing in bitcoin the value of a daily coffee

u/Gorillahair2000's strategy is simple: invest $5 in bitcoin every day for 365 days, regardless of good or bad news, and regardless of market conditions. After a year of daily investment, the Reddit user's patience and determination have paid off. 

1. By investing a total of $1,825 over the course of the year, u/Gorillahair2000 managed to accumulate 0.075 bitcoin. The average purchase price was $24,108.58, while the price of bitcoin, at the time of the Reddit post dated October 27, 2023, was $34,158.20. The total investment is now worth $2,585.75, representing an exceptional net change of +41.68%.
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The effectiveness of Dollar Cost Averaging (DCA)

This experiment demonstrated the effectiveness of Dollar Cost Averaging (DCA), an investment strategy involving the regular purchase of assets at fixed intervals and for a constant amount, irrespective of their price. This method aims to reduce the risks associated with financial market volatility. By following this approach, u/Gorillahair2000 was able to mitigate market fluctuations by smoothing its entry price, thus transforming daily expenses into a qualitative and fruitful investment.

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Transparency and good practice

u/Gorillahair2000's commitment to transparency and best practice is evident in its experience. Indeed, he took into account the 0.5-1.0% spread on each purchase, ensuring that earnings remained significant even after fees were taken into account. What's more, he followed industry best practice by using a Bitcoin Lightning wallet for his purchases, then transferring his bitcoins to a hardware wallet. This approach not only reduced costs, but also enhanced the security of his investment.

Dare to invest

Against a backdrop of widespread mistrust in the cryptocurrency market, where crypto winter was setting in with downward trends and high volatility, u/Gorillahair2000 decided to take a considered risk. At a time when most investors were hesitating, he courageously began his experiment. Today, this bold choice has paid off remarkably well. His decision to dive into investing when most were retreating is a testament not only to his confidence in Bitcoin's long-term potential, but also to his ability to seize opportunities, even in the most uncertain of times. As such, his calculated risk-taking proved to be a wise decision, underlining the importance of timing and insight in the volatile world of cryptocurrencies.

Anyone can invest in cryptocurrencies

Maybe the most important lesson from this experience is the accessibility of investing in cryptocurrencies. With just $5 a day, u/Gorillahair2000 has shown that anyone, regardless of their financial situation, can enter the world of cryptocurrencies. It's not the amount you invest that counts, but rather consistency, patience and above all, belief in the potential of cryptoassets. While confidence in this sector can be cultivated through learning, the investment itself requires no specific knowledge.

Source: https://bitcoinmagazine.com/markets/redditor-investing-5-into-bitcoin-every-day-for-1-year, consulted on 31-10-23

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