Why saving rather than spending all of your year-end bonus is a smart move

Investing it in cryptos has historically paid off handsomely.
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With the end of the year just around the corner, the temptation to spend that bonus (if you’re lucky to get one) is ever-present.

But what if you saved instead of spending?

Or better yet, what if you gave your loved ones investments this year, instead of that present that will soon be forgotten?

Had you invested R1 000 in the Revix Top 10 Bundle a year ago, that would be worth R3 890 today.

The Revix Top 10 Bundle spreads your investment equally across the top 10 cryptos ranked by market cap, so you get exposure to the biggest and many of the best performing cryptos in the market.

That same R1 000 invested a year ago in the Smart Contract Bundle – which spreads your investment across the six largest cryptos focused on smart contracts, which are revolutionising the way we understand and purchase financial services – would today be worth R4 170.

A direct investment in crypto assets like Cardano (ADA), Ethereum (ETH), Polkadot and Solana (SOL) – all of which feature prominently in the emerging decentralised finance (DeFi) space – would have yielded returns ranging from 498% to more than 11 000%.

Take a look at the table below to get a sense of the mouth-watering returns achieved by Revix bundles over the last year. Though this is no guarantee of future returns, and investors should be prepared for a volatile ride, the returns below offer a timely reminder of the importance and potential benefits of diversifying your crypto portfolio.

”With the festive season upon us, a lot of people are sitting with 13th cheques or bonuses and the temptation is to spend it,” says Brett Hope Robertson, investment analyst at crypto investment platform Revix.

“Taking just some of that spare money and saving rather than spending it could have a material impact on your future financial wellbeing. Saving is a habit, and once you get into it, it becomes less of a chore to set money aside for children’s education, an overseas holiday, or retirement.

“Just looking at some of the returns below shows you why even a small percentage exposure to cryptos can radically alter your financial future.”

Source: Revix

 The benefits of regular saving in cryptos

The chart below shows what would have happened if you put $100 into Bitcoin every month for the last three years: a total investment of $3 600 would today be worth $24 546, equivalent to a gain of 582% over three years.

“Dollar-cost averaging has historically been an excellent way to invest in cryptos, since you are less concerned about the price at any particular point in time than in making a regular monthly investment,” says Hope Robertson.

Taking a short time period of 12 months, a regular $100 a month invested into Bitcoin would today be worth $1 819, which is a 51% gain on the total invested amount. This shows that the strategy has been successful, even though Bitcoin has been through several drawdowns in the course of the last year.

Diversification

“Diversification has been known for centuries as a crucial strategy to reduce risk, and the same applies to the crypto market,” adds Hope Robertson.

“As amazing as Bitcoin’s growth has been over the last year or two, it pales alongside other crypto assets like Solana, Ethereum and Binance Coin.

“The question many crypto investors are asking is how does one find the next Solana or Binance Coin before the price explodes upwards? Investing in the Revix Top 10 Bundle or the Smart Contract Bundle takes the guesswork out of it, and that means you will always have exposure to the leading cryptos in the market.

“That’s why the returns from the Smart Contract Bundle and the Top 10 Bundle generally outstrip a direct investment in Bitcoin, which has grown enormously over the last few years, but as Bitcoin starts to mature it’s growth starts to slow. This makes it hard to keep up with crypto assets like Solana.”

Stand a chance to win one of three exclusive pairs of Tateossian® Bitcoin Blockchain Cufflinks.

Simply predict what you think the Bitcoin price will be on the 3rd of January (Bitcoin’s birthday) and make an investment of R500 or more in Bitcoin via Revix’s platform.

Click here to take part!

About Revix

Revix brings simplicity, trust and great customer service to investing. Their easy to use online platform enables anyone to securely own the world’s top investments in just a few clicks.
Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.

For more information, please visit www.revix.com

This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

Brought to you by Revix.

Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.

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