Ethereum's price has been very volatile for years, but patient shareholders have stayed ahead of the curve.
Ethereum (Ethereum 0.18%) Prices have historically proven to be very volatile. It is not uncommon for the value to double or triple in a few months. However, in other months the price has dropped by more than half.
But what about in the long run? If he had invested $300 in Ethereum five years ago and held onto it, he probably would have been very happy with the outcome.
How much profit has Ethereum made in the last 5 years?
If you invested $300 in Ethereum five years ago, you would have approximately $5,600 today. This is a return of 1,770% for him BitcoinThe performance of during the same period is 1,000%.of S&P500For comparison, the value increased by only 87%.
However, there are some important caveats to be aware of before purchasing Ethereum.
First, Ethereum was a young and relatively unknown technology five years ago. Since then, the cryptocurrency industry has come a long way, gaining much more utility, adoption, and recognition. Ethereum's biggest growth period could be behind it.
Second, these eye-popping profits were only earned by investors with so-called diamond hands (a cryptocurrency term that means riding through extreme ups and downs). For example, if he bought Ethereum 5 years ago only to sell it at the beginning of 2023, he would only get a 640% profit. While this is still an impressive number, it's far less than what a patient investor would have earned. Conversely, if he bought Ethereum in early 2022 and sold it a year later, he would have lost two-thirds of his original investment.
Ethereum has proven to be a good long-term investment, but short-term movements are difficult to predict.
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.
