More and more beginners are dipping their toe into investing as a way to build wealth over time. From gold, stocks, P2P lending, property, cryptocurrency and high-interest savings accounts, there are plenty of options to choose from. But here’s the million-dollar question (literally!): What’s the best investment asset out there?
Bitcoin is fast becoming one of the most popular new investments out there, particularly for newbie investors. So, is Bitcoin a good investment, and how does it stack up against other assets? Find out below.
Did you know? Bitcoin has the highest ROI compared to any other investment assets in the last 5 years.
Coin telegraph, 2020
Bitcoin vs. traditional investment assets
Gold, bonds, real estate, FOREX trading — these popular assets have been around the block and stood the test of time. But do they really deliver good returns over time?
| % change (L1Y) | % change (L3Y) | % change (L5Y) | % change (L10Y) | |
| Bitcoin | 398.49% | 346.77% | 8338.23% | 8384240% |
| High-interest savings account | 3.00% | 3.00% | 3.00% | 3.00% |
| Gold | 138.43% | 157.67% | 202.40% | 34.59% |
| Government bonds (GOV) | 128.54% | 366.33% | 718.30% | 1774.01% |
Bottom line? Most of these traditional assets are either extremely volatile with unpredictable returns or come with almost no risk and almost no reward. If you’re trying to build wealth, Bitcoin is a far more effective way to do so.
ETFs and Index funds vs. Bitcoin
ETFs and index funds are quickly gaining momentum amongst beginner investors. These funds help you diversify your portfolio and better manage risk, but are they really worth all the hype?
| % change (L1Y) | % change (L3Y) | % change (L5Y) | % change (L10Y) | |
| Bitcoin | 398.49% | 346.77% | 8338.23% | 8384240% |
| ASX 200 (XJO) | 95.06% | 111.63% | 138.06% | 140.31% |
| Dow Jones (DJI) | 366.67% | 61.11% | 78.57% | 22.00% |
| S&P500 (.INX) | 114.86% | 137.22% | 204.90% | 296.87% |
| NASDAQ Composite (.IXIC) | 140.31% | 181.75% | 293.60% | 488.15% |
Bottom line? Investing in an index fund delivers better returns than storing your cash in a high-interest savings account, with the historical average stock market return sitting at around 10% annually NOT adjusted for inflation. However, you also need a brokerage account to buy, sell and trade — the associated costs can quickly add up.
Tech shares vs. Bitcoin
For a lot of beginners, tech shares seem like a high return, low risk investment. So how do these compare to bitcoin?
| % change (L1Y) | % change (L3Y) | % change (L5Y) | % change (L10Y) | |
| Bitcoin | 398.49% | 346.77% | 8338.23% | 8384240% |
| Amazon (AMZN) | 168.58% | 242.62% | 553.70% | 1784.40% |
| Google (GOOG) | 120.85% | 156.40% | 251.18% | 573.50% |
| Apple (AAPL) | 166.08% | 297.14% | 540.87% | 1121.59% |
| Microsoft (MSFT) | 130.19% | 244.87% | 425.95% | 772.09% |
| Facebook (FB) | 113.47% | 141.06% | 266.71% | N/A |
| Tesla (TSLA) | 831.95% | 1256.30% | 2150.00% | 18533.84% |
| Netflix (NFLX) | 149.96% | 229.22% | 471.31% | 1952.29% |
| Zoom (ZM) | 479.08% | N/A | N/A | N/A |
| Afterpay (APT) | 364.24% | 1551.28% | N/A | N/A |
Bottom line? Tech stocks still deliver a high ROI, but the returns are nowhere near as impressive as 10 years ago — plus the price per share is through the roof. Bitcoin is quickly overtaking tech as the next big thing in the investing world, thanks to its high ROI and lower buy-in cost.
Bitcoin vs. other cryptocurrencies
Since Bitcoin rose to fame, a number of other digital currencies have also emerged on the market. So how does bitcoin stack up?
| % change (L1Y) | % change (L3Y) | % change (L5Y) | % change (L10Y) | |
| Bitcoin | 398.49% | 346.77% | 8338.23% | 8384240% |
| Ethereum | 605.53% | -13.21% | 10,361.40% | N/A |
| Ripple (XRP) | 19.31% | -85.12% | 5,753.20% | N/A |
| Litecoin (LTC) | 145.60% | -39.56% | 3,539.81% | N/A |
Bottom line? These alternatives are extremely volatile and tend to bounce around for a few years, before disappearing into oblivion — along with your hard-earned investment.
3 reasons to start investing in Bitcoin
1. Low barrier to entry
Dollar-Cost Averaging means you don’t need for a large, initial lump-sum investment. With Amber, you can sign up in seconds and start investing from as little as $5 a month.
2. Unlimited potential
If Bitcoin goes to the moon and becomes mainstream in the future, it will change your life — for the better. Eliminate your FOMO and begin building your wealth for tomorrow today.
3. Easy and simple
Forget mining bitcoin — it’s easier than ever to invest using Amber’s app. Make your first purchase in under 90 seconds, all from the palm of your hand.
Did you know? There’s no need to shell out thousands to invest in one full bitcoin. Anyone can buy and own a fraction of bitcoin called a “Satoshi”
aka: “stacking sats”
At the end of the day, what you invest in depends on your risk appetite and the amount you’re willing to invest. If you’re just beginning your journey, Bitcoin investing is perhaps one of the best decisions you can make for your future.
Reduce risk and build your wealth with Dollar-Cost Averaging
– Aleks Svetski, CEO & Co-founder @ Amber Labs
“Dollar-Cost Averaging is a far less stressful way of investing for the long term, irrespective of the kind of asset you’re buying whether it’s shares, real estate, ETFs, mutual funds, bonds — and especially for more volatile assets such as crypto assets & digital currencies.”
See how much you could have already made with Bitcoin:
Use Amber’s Dollar-Cost Averaging (DCA) calculator to see how a recurring investment in Bitcoin would have performed.
Get started at https://amber.app/calculate-your-investment/
