Cryptocurrency is becoming more and more popular as each day passes, and people have been making huge profits by investing in it. The value of a few cryptocurrencies, in particular, has jumped significantly, fetching investors a lot of profit. One such cryptocurrency is Bitcoin, obviously. Its price has increased remarkably since last year. If you are thinking about investing in Bitcoin and making some money but you are wondering how much returns would it fetch you, here is a small example of how much money you could have made if you invested in Bitcoin a year ago.
Also read: Top 5 cryptocurrency exchange apps in India for online trading of Bitcoin, Ethereum, and more
Increase in Bitcoin price in India in one year
| Month | Investment value |
| Jul 2020 | Rs 50,000 |
| Aug 2020 | Rs 68,825.39 |
| Sep 2020 | Rs 65,682.87 |
| Oct 2020 | Rs 77,979.08 |
| Nov 2020 | Rs 1,08,800.53 |
| Dec 2020 | Rs 1,59,461.45 |
| Jan 2021 | Rs 2,29,046.22 |
| Feb 2021 | Rs 3,15,293.98 |
| Mar 2021 | Rs 3,34,039.67 |
| Apr 2021 | Rs 3,63,121.86 |
| May 2021 | Rs 3,25,262.75 |
| Jun 2021 | Rs 2,25,692.47 |
Exactly one year ago, in July 2020, the lowest Bitcoin price in India was Rs 6,70,295 and the average was Rs 7,62,891 (considering high and low figures listed on Yahoo Finance). Suppose you had invested around Rs 50,000 in Bitcoin in July last year, you could have bought 0.0745 Bitcoin. Today, the Bitcoin price in India is around Rs 25 lakh. If you sell 0.0745 Bitcoin today, you could get around Rs 1.86 lakh. If you subtract the Rs 50,000 amount that you had invested earlier, you could have earned a profit of Rs 1.36 lakh. That, by any measure, is a great return!
How much profit would you have made if you sold Bitcoin in April? Your 0.0745 Bitcoin — purchased for Rs 50,000 — would have been worth Rs 3.63 lakh at its peak.
However, that’s not even the highest return you could have made from the Rs 50,000 investment in Bitcoin. The cryptocurrency touched its highest value in April 2021, with price skyrocketing to Rs 48,74,119 at one point. How much money would you have made if you sold Bitcoin at this point? Your 0.0745 Bitcoin — purchased for Rs 50,000 — would have been worth Rs 3.63 lakh at its peak. When you subtract the sum you had invested to buy this Bitcoin, you could have gained over Rs 3 lakh. That amount of profit in nine months is just mind-boggling!
Trading fees and other costs
You might be thinking “what about the trading fee? How much profit would I have earned after paying the trading fee?” Well, the trading fee isn’t much. Take Coinbase for example. It charges 0.50 percent for buying and selling transactions. Suppose you paid 0.50 percent charges while buying Bitcoin worth Rs 50,000, the trading charges would have been Rs 250. Suppose you paid the same,0.50 percent brokerage while selling Bitcoin today, you would have to pay Rs 930 as trading fee. Combine the two and you have paid less than Rs 1,500 for selling and buying an investment that made you over Rs 3 lakh in profit.
There are a few other charges as well, such as the Coinbase fee, but even when you consider those charges, it will be a fraction of the profit that you would make. Then there’s taxes you will have to pay on the profit you made, further putting a dent on your gains from the transaction.
Moreover, investing in cryptocurrency has always been risky. You don’t always get profits. It is possible that the price of Bitcoin falls to Rs 10,00,000 by the end of this year. Or the government decides to deem it illegal. In such cases, you would end up losing your investment. But one thing is for sure — if you closely track the Bitcoin price in India and invest and exit at the right time, you could earn some hefty profits from it.
