Over the course of a year, I conducted a simple experiment: buying $5 worth of cryptocurrency every day. No market timing, no big bets - just plain consistency. My goal? To see what happens when you dollar-cost average into cryptocurrency and whether small, steady investments can add up. Warning: it’s quite a ride.
Plan: $5 Daily, 365 Days Continuously
The idea is very simple: invest $5 daily into a different cryptocurrency. I think this will diversify risk, give me exposure to various projects, and help me understand the cryptocurrency space better. But what I didn't expect is that this journey would be so unpredictable and emotional.
Cryptocurrency Is A Roller Coaster
One of the first things I noticed? Cryptocurrency moves fast. One day, I saw a coin increase by 20% in just a few hours. The next day, it dropped just as quickly. Watching my portfolio fluctuate daily is both exciting and stressful. Even with hundreds of different coins, the market often moves in sync - when Bitcoin drops, most of the other coins follow suit.
Diversification Does Not Always Achieve Effectiveness
I assume that allocating my investments into 365 different cryptocurrencies will minimize risk. Theoretically, that makes sense. But in practice? When the market declines, almost everything drops. A few coins surge, but those gains rarely exceed the losses. It’s a harsh lesson: diversification doesn’t always mean safety in cryptocurrency.
Important Time More Than I Think
My strategy is to buy and forget - to buy at the same time every day, not caring about anything. But there are days when I buy just before a drop occurs, and other days, I get lucky just before a price surge. This makes me realize that while consistency is key, timing still plays a big role. A little research before buying could have made a big difference.
Unexpected Victory: Learning the Market
One of the biggest takeaways I have? The knowledge I have gained. Every day, I study the coin I am buying - its purpose, the team behind it, and its long-term vision. Some are very innovative, while others are just pure hype. Over time, I have become better at spotting red flags and understanding which projects have real potential.
Investing in Cryptocurrency is an Emotion
I didn't expect that investing would mess up my emotions so much. Seeing the returns is amazing. See the hole? Not fun at all. It's easy to panic sell or buy for fear of missing out, but staying calm is important. Market movements are harsh, but the real winners are the ones who are patient.
What's Next?
After a year of daily investing, I have seen the highs, the lows, and everything in between. In Part 2, I will analyze the performance of my portfolio - what worked, what failed, and what I plan to do next.
One thing is for sure: cryptocurrency is not for the faint of heart. But if you can withstand the volatility and do your research, there is still a lot to learn - and you might even make some profits.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Buy $5 Cryptocurrency Every Day for 1 Year - This Is What Happened
Over the course of a year, I conducted a simple experiment: buying $5 worth of cryptocurrency every day. No market timing, no big bets - just plain consistency. My goal? To see what happens when you dollar-cost average into cryptocurrency and whether small, steady investments can add up. Warning: it’s quite a ride. Plan: $5 Daily, 365 Days Continuously The idea is very simple: invest $5 daily into a different cryptocurrency. I think this will diversify risk, give me exposure to various projects, and help me understand the cryptocurrency space better. But what I didn't expect is that this journey would be so unpredictable and emotional. Cryptocurrency Is A Roller Coaster One of the first things I noticed? Cryptocurrency moves fast. One day, I saw a coin increase by 20% in just a few hours. The next day, it dropped just as quickly. Watching my portfolio fluctuate daily is both exciting and stressful. Even with hundreds of different coins, the market often moves in sync - when Bitcoin drops, most of the other coins follow suit. Diversification Does Not Always Achieve Effectiveness I assume that allocating my investments into 365 different cryptocurrencies will minimize risk. Theoretically, that makes sense. But in practice? When the market declines, almost everything drops. A few coins surge, but those gains rarely exceed the losses. It’s a harsh lesson: diversification doesn’t always mean safety in cryptocurrency. Important Time More Than I Think My strategy is to buy and forget - to buy at the same time every day, not caring about anything. But there are days when I buy just before a drop occurs, and other days, I get lucky just before a price surge. This makes me realize that while consistency is key, timing still plays a big role. A little research before buying could have made a big difference. Unexpected Victory: Learning the Market One of the biggest takeaways I have? The knowledge I have gained. Every day, I study the coin I am buying - its purpose, the team behind it, and its long-term vision. Some are very innovative, while others are just pure hype. Over time, I have become better at spotting red flags and understanding which projects have real potential. Investing in Cryptocurrency is an Emotion I didn't expect that investing would mess up my emotions so much. Seeing the returns is amazing. See the hole? Not fun at all. It's easy to panic sell or buy for fear of missing out, but staying calm is important. Market movements are harsh, but the real winners are the ones who are patient. What's Next? After a year of daily investing, I have seen the highs, the lows, and everything in between. In Part 2, I will analyze the performance of my portfolio - what worked, what failed, and what I plan to do next. One thing is for sure: cryptocurrency is not for the faint of heart. But if you can withstand the volatility and do your research, there is still a lot to learn - and you might even make some profits.