Investing can feel overwhelming, especially when you're just starting out. With so many options—traditional savings accounts, stocks, ETFs, and the rapidly growing world of cryptocurrency—it's natural to wonder: What should I actually invest in?
To help answer this, let’s take a real-world look at how $1,000 invested on January 1, 2017, would have performed across different asset classes by 2021. We'll compare returns from bank savings, a popular ETF (0050), diversified stocks, Bitcoin, and even the risks of investing in failed cryptocurrencies—so you can make smarter, more informed decisions.
All calculations are based on nominal returns, without adjusting for inflation, to simplify comparisons and focus on actual cash value growth.
Traditional Savings Accounts: The Low-Risk, Low-Reward Option
What if you did nothing and just kept your $1,000 in a bank?
Let’s assume a fixed deposit interest rate of 1.1% per year—which is already optimistic for most savings accounts in regions like Taiwan—and hold it for five years.
Using compound interest:
(1 + 0.011)^5 ≈ 1.056
Your $1,000 would grow to approximately **$1,056, a total return of 5.6% over five years** (not 1.61% as previously miscalculated).
Even with this correction, the message remains clear: savings accounts offer minimal growth. While they’re safe and accessible, they barely keep up with inflation. Over time, your purchasing power may actually decrease—even if your balance ticks upward slightly.
Investing in ETFs: Steady Growth with Market Exposure
Exchange-Traded Funds (ETFs) offer diversification and lower risk than individual stocks. One popular choice in Taiwan is 0050, which tracks the top 50 companies on the Taiwan Stock Exchange.
If you invested $1,000 in **0050 on January 3, 2017**, when the price was around **NT$71.9 (~$2.40 per share)**, and held it until **November 1, 2021**, when the price reached about **NT$136.75 (~$4.56 per share)**, your capital appreciation alone would be:
(136.75 - 71.9) / 71.9 ≈ 90.2% gain
On top of that, 0050 pays semi-annual dividends. Over five years, reinvested dividends contributed roughly an additional 29.55% return.
Total return: ~119.75%
Your $1,000 would now be worth **$2,197**.
This demonstrates the power of passive investing in broad-market ETFs—consistent growth with relatively low effort.
Stock Market Investing: Balanced Returns Through Diversification
Individual stock returns vary widely based on timing, sector, and strategy. To keep things realistic, we’ll assume a well-diversified portfolio with a long-term annual return between 6% and 10%—in line with historical market averages.
Warren Buffett’s Berkshire Hathaway has averaged nearly 20% annually, but that’s exceptional. Most investors do well to achieve 8% per year.
So, investing $1,000 in a diversified stock portfolio at an 8% annual return:
$1,000 × (1.08)^5 = $1,469
Wait—earlier math suggested $1,276. That was incorrect.
Let’s correct it:
- Year 1: $1,080
- Year 2: $1,166
- Year 3: $1,260
- Year 4: $1,360
- Year 5: $1,469
✅ Corrected total return: 46.9%, not 27.6%.
Your $1,000 becomes **$1,469** after five years.
This highlights the importance of accurate compounding calculations—and shows that even modest annual returns can build meaningful wealth over time.
Bitcoin & Cryptocurrency: High Risk, Extraordinary Reward
Now let’s talk about the game-changer: Bitcoin.
On January 1, 2017, Bitcoin was priced at around $1,000**. If you bought $1,000 worth that day—getting exactly 1 BTC—and held it until November 1, 2021, when Bitcoin hit $60,000**, your investment would be worth:
$60,000
That’s a 5,900% return—turning $1,000 into sixty thousand dollars in under five years.
Even if you bought at the peak of the 2017 bull run—$19,800 per BTC in December 2017—and held through the subsequent bear market:
$60,000 / $19,800 ≈ 3.03x gain (203% return)
Still highly profitable—for those who held.
This brings us to a key crypto investing principle:
What Is HODL?
"HODL" (a misspelling of "hold") is a crypto community term meaning to hold your assets long-term regardless of price swings. It reflects strong conviction in Bitcoin’s future value.
HODLers ignore short-term volatility and focus on long-term adoption trends—proven effective by Bitcoin’s repeated recovery and growth after major crashes.
👉 Want to start your crypto journey safely? Learn how to securely buy and store Bitcoin today.
The Dark Side: Investing in Dead Coins
Not all crypto investments succeed.
Many altcoins launched during the 2017 boom have since become "dead coins"—projects abandoned or exposed as scams with zero value.
If you’d invested $1,000 in one such coin on January 1, 2017?
Today, it would be worth: $0
That’s a -100% return.
These failures underscore a critical rule:
Never invest in projects you don’t understand or that lack transparency.
Always research:
- Team background
- Whitepaper clarity
- On-chain activity
- Community engagement
Blind speculation leads to losses—even in a booming market.
Summary: Investment Performance Comparison (2017–2021)
Here’s how each option performed with a $1,000 initial investment:
| Investment Type | Final Value (Nov 2021) | Total Return | Avg Annual Return |
|---|---|---|---|
| Savings Account | $1,056 | 5.6% | ~1.1% |
| ETF (0050) | $2,197 | 119.75% | ~17% |
| Diversified Stocks | $1,469 | 46.9% | 8% |
| Bitcoin | $60,000 | 5,900% | ~227% |
| Dead Coin (Failed Crypto) | $0 | -100% | — |
Clearly, Bitcoin delivered the highest returns, but came with extreme volatility and risk. ETFs and stocks offered solid growth with more predictability. Savings accounts barely kept pace with time.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin too risky for beginners?
A: Bitcoin is volatile but has shown strong long-term growth. Beginners should consider allocating only a small portion of their portfolio—say 5–10%—and use dollar-cost averaging to reduce timing risk.
Q: Can I lose all my money investing in crypto?
A: Yes—especially with unknown altcoins or scams. Stick to major cryptocurrencies like Bitcoin or Ethereum through reputable platforms to minimize risk.
Q: How does HODLing work during a crash?
A: HODLing means resisting panic selling. Historically, Bitcoin has recovered from every major drop. Emotional discipline is key—focus on long-term trends over short-term noise.
Q: Are ETFs better than individual stocks?
A: For most beginners, yes. ETFs provide instant diversification and lower risk than picking individual companies. They’re ideal for passive investors seeking steady growth.
Q: Should I keep money in savings accounts?
A: Only for emergency funds or short-term goals. For long-term wealth building, savings accounts underperform due to low interest rates and inflation erosion.
Q: How do I avoid investing in dead coins?
A: Research thoroughly. Look for active development teams, real-world use cases, transparent roadmaps, and strong community support before investing in any crypto project.
Whether you're drawn to the stability of ETFs or the explosive potential of Bitcoin, the key is to start informed. Understand your risk tolerance, diversify wisely, and let time work in your favor. The best investment you can make is in knowledge—and taking action based on it.