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If You Invested $300 In Ethereum 5 Years Ago, Here’s How Much You’d Have Today
Ethereum (CRYPTO:ETH) prices have historically proven to be very volatile. It is not uncommon to see its value double or triple in a matter of months. In other months, however, its price has been cut in half or worse.
But what about the long term? If you had invested $300 in Ethereum five years ago and held on, you would probably have been very happy with the outcome.
How profitable has Ethereum been over the past five years?
If you had invested $300 in Ethereum five years ago, you would have about $5,600 today. That’s a return of 1,770%, even higher than Bitcoin1,000% performance over the same period. S&P 500For comparison, its value has only increased by 87%.
But before you jump in and buy Ethereum, there are a few important caveats to note.
First, five years ago, Ethereum was still a young and relatively unknown technology. The cryptocurrency industry has come a long way since then, with much greater utility, adoption, and recognition. It’s possible that Ethereum’s greatest days of growth are behind it.
Second, these stunning returns have only been achieved by investors with what are called diamond hands — that’s crypto terminology for holding on through the extreme ups and downs. If you had bought Ethereum five years ago and sold it in early 2023, for example, you would have made only a 640% gain. That’s still impressive, but far less than what patient investors have made. Conversely, if you had bought Ethereum in early 2022 and sold it a year later, you would have lost two-thirds of your initial investment!
Ethereum has proven to be a great long-term investment, but its short-term movements are difficult to predict.
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Ryan Vanzo has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
If You Invested $300 In Ethereum 5 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool