The methodology
Let’s play a game: what would have happened if we had invested $100 in Ethereum from late 2021 to today? Quite some time ago we asked the same question regarding bitcoin; this time it is the turn of the second largest cryptocurrency by market capitalization.
The methodology we employed to make the calculation is simple:
- We assumed an investment of $100 each month, starting in November 2021 and ending in January 2025;
- No different inputs: just a timely PAC on the first day of each month;
- We did not consider exchange fees or any gas fees. This is because these are expense items we would have had regardless; also, by opting for the right solution, these costs can be contained;
- We also did not consider any returns from DeFi or staking: we wanted to keep things as simple and safe as possible, hence the choice to simulate pure hodl;
- The price on which we based the calculations is the closing price . All data comes from TradingView.
Having made this indispensable premise, let’s find out the results obtained.
Do you want to explore this topic further? Read our article dedicated to Ethereum!
Se avessimo investito 100 dollari in ETH dal 2021...
Let’s start with costs. A PAC from November 2021 to January 2025 (inclusive), with a $100 monthly amount, would have involved a total investment of $3900. An affordable amount for many people considering the small monthly effort and the time frame spread over more than three years.
We would have gone through up times and down times. In fact, during this period, ETH fluctuated from highs at over $4500 to lows of just under $1000. We certainly would not have been bored, but not everyone would have liked it.
Today we would have accumulated about 1.83 ETH. At today’s exchange rate, the value would amount to over $6,000. In percentage terms, we are talking about a very good capital growth close to 54 percent.
This simulation once again shows us the power of planning, waiting and the right choice of assets. If a cryptocurrency has what it takes to do well, the project is solid and we have the risk tolerance, a PAC can reward us.
Follow us for more simulations: it may hurt to reason about “ifs” and “buts,” but it helps us better plan our future investment choices!
Where to buy Ethereum?
The Ether cryptocurrency, native to the Ethereum blockchain, can be found on numerous centralized and decentralized exchanges.
Among the main names we mention Binance, Bybit, Bitget, Coinbase e Kraken.
If, on the other hand, you want to stay in the DeFi environment, surely Uniswap, Sushi and PancakeSwap are among the most reliable and highly liquid.
