While Bitcoin has seen significant gains in recent years, the same can’t be said for most altcoins. Among the major players, Solana has emerged as one of the big winners. Those who have consistently accumulated over the years are now being handsomely rewarded.
A Simple and Proven Crypto Strategy #
This year may seem rough for Solana, but 2024 and 2023 were excellent years for the popular altcoin. Anyone holding the coin for a while is still enjoying impressive profits, despite the painful correction of recent months.
However, it’s been a volatile ride for investors, with emotions swinging in all directions. For much of 2024, the price action was frustrating and disappointing, but the pain was quickly erased by a rapid surge at the end of the year.
This is typical of the crypto market, where months of losses can be wiped out in an instant. Missing out on such an explosive move while sitting on the sidelines can make a huge difference.
That’s one reason why dollar-cost averaging (DCA) is such a powerful investment strategy. You invest a fixed amount at regular intervals, regardless of the price—for example, a portion of your salary every week or month.
You could choose to invest all your money at once, but you then risk missing an explosive rally. It’s also possible to invest at exactly the wrong time. Even the most experienced analysts find it incredibly difficult to time the market.
Who would have thought things would look this bad now, for instance? If you had bought Solana at the end of September, you’d be down almost 50% today. That stings.
An investor who spread out their purchases, however, did buy at that high level, but they also benefited from the sharp decline that followed. This smooths out your risk and results in an average purchase price over a longer period.
The Numbers: A Three-Year Solana DCA #
And this approach works surprisingly well. Anyone who had invested €10 in Solana every week for the past three years (starting December 14, 2022) would have invested a total of €1,240.
That investment would be worth €4,079.94 today. That’s a profit of €2,839.94, representing a return of 218.75%.
And that’s despite the price having been many times higher. Perhaps the best part is that you barely had to look at the chart during all that time, which would have saved you a lot of headaches.