The best-kept secret
( The average cost )
Let’s imagine that you had the opportunity to buy 500 $BTC a at one dollar. You were early in bitcoin, but there comes a moment when you see that btc reached 1000 dollars, and you decide to sell half. It gave you a profit of 250k; you feel like you are the best investor in the world, you forget about your remaining btc and live your life as you wish with the money you earned. You look at btc again at 60k and sell another 10 btc, and you live life to the fullest. You still have 240btc left, and life is good because you made the best investment of your life.
Let’s consider a different case: you saw btc at a thousand dollars and decided to buy 10 btc, spending 10 thousand dollars. It was part of your savings; you bought them because you think it is the future and forgot about them because it wasn't your most important investment. But you find out btc reached 60k and decide to sell everything, and in the end, you end up with 600k and live a normal life but without worries.
In another case, a businessman sees btc as an option to maintain power over time and buys btc at 10k. He only buys 15 and spends 150k on his btc. He lives a work-focused life, and btc is not important to him because it is not his main asset, and he has good cash flow. But there comes a moment when he learns that btc is worth 105k, and he decides to sell and now has 1.05 million.
Everyone made money and multiplied their value by several times; what was the secret? Their average cost. Those who had the lowest cost achieved more, and this happens in all investments: the lower your accumulation cost, the greater the benefit in the future.
Imagine if you had invested in Tesla, Nvidia, Microsoft, Apple at a reasonable time; the same would have happened, and if you bought consistently, you would have a low average cost in the future.
We don’t have a crystal ball to predict the future, but today, anyone who decides to invest in btc should do so with a long-term view and a clear plan.
And please stay away from futures.
In the next post, we will talk about Dynamic DCA.
This is not investment advice $BTC
