“The more your money works for you, the less you have to work for your money.”
-Idowu Koyenikan, Wealth for All: Living a Life of Success at the Edge of Your Ability
It’s time for a Crypto Math Moment!
Today, let’s talk risk vs. reward, look at the 1-year growth percentages of a few cryptocurrencies, and consider how we may be able to make our money better work FOR US!
Traditional Investments (Low-Risk, Low Reward)
How many times have you heard “save your money?” But… what exactly are you supposed to DO with it? Keeping it ‘safe’ in a savings account may seem like the obvious choice.
A quick search for “high-interest savings account” will return results of less than 1%, average Annual Percentage Rate (APR), in America.
What does this mean?
Let’s say you have $100 to invest, at 1% interest. “Percent” essentially means “per 100.”
1% = 0.01, written as a decimal, or one cent/per hundred.
100 x 0.01 = 1, which means…
You’d make $1 in simple interest: a grand total of $101 after 1 year’s time.
Not a very profound return, when thinking about retirement, is it?
Consider the Crypto Possibilities (High-Risk, High-Reward)
Investing in cryptocurrency can be a wild ride! Returns cannot be guaranteed. People may find it difficult to stick with their investments, if they’re watching prices fluctuate on a regular basis. However, global interest in cryptocurrency, and the number of people who are acquiring it continues to grow. So far, merely ~5% of the world has invested in cryptocurrency.
(Future Crypto Math Moments about this, to come!)
This means we have a long way to go, in terms of growth! We like to say… YOU’RE EARLY!
And you know what they say about the early bird…
Remember that $100 you were saving?
Take a look at the growth percentages of a few cryptocurrencies over the course of 1 year’s time:
*Calculations per CoinMarketCap Historical Snapshot.
A couple of these did not perform (date-to-date) better than the $1 return from a savings account. Yet, the majority did, and well beyond! You have to consider your personal goals, and what you are willing to “risk” (invest) for your “reward” (return/growth).
NOTE: This is only a small sample of return percentages from a few popular projects, over the course of the past year. We simply can’t ALL expect the 1-year growth of Shiba Inu, a project just in its infancy in Q1 2021, nor does this sample mean Chainlink is a “bad” investment! This comparison of returns may vary greatly on a daily basis!
Regardless of your goals, looking across the board, there is reason to speculate that..
(1) cryptocurrencies are here to stay, and
(2) the global market will continue to grow, creating life-changing investments opportunities, especially for early investors into successful cryptocurrencies!
If you’re not already feeling “bullish,” or want more stats, check out this article:
Bitcoin Returns Reach Over 70% in 2021, Outperform Gold and Stock Market for Third Straight Year
Remember: there’s good days and bad days in crypto, but you can always be “here for the memes!” Start small. Hang in there. Learn something! The opportunities are vast.