When stepping into the world of personal finance, one of the most common questions beginners ask is: What should I invest in? With so many options—bank deposits, stocks, ETFs, and cryptocurrencies like Bitcoin—it’s easy to feel overwhelmed. To help you make sense of your choices, we’ll compare real-world returns from investing $1,000 on January 1, 2017, across several major asset classes. We’ll look at actual growth over five years, excluding inflation for clarity, so you can understand the long-term potential of each option.
Whether you're risk-averse or open to volatility, this analysis will give you a clearer picture of where your money could grow—and where it might disappear.
Bank Savings: The Low-Risk Baseline
What if you did nothing and just left $1,000 in a bank?
Let’s start with the safest and most passive option: fixed-term bank deposits. In Taiwan, average annual interest rates hover around 1.1%, and we’ll use that as our benchmark—even though many accounts offer less.
Assuming compound interest over five years:
$1,000 × (1 + 0.011)^5 ≈ **$1,056**
Wait—earlier math suggested $1,016? That’s because some calculations assume simple interest or shorter compounding periods. For accuracy:
With annual compounding at 1.1%, the return after five years is approximately 5.6%, bringing your total to about $1,056.
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While this method carries virtually no risk, the results highlight a key truth: leaving money in low-yield accounts means losing ground to inflation over time. If consumer prices rise by 2–3% annually, your real purchasing power actually decreases. This makes active investing essential for long-term wealth building—even small steps beyond savings accounts can yield significantly better outcomes.
Investing in ETFs: Steady Growth with Diversification
Exchange-Traded Funds (ETFs) offer diversified exposure to markets without picking individual stocks. One popular choice in Taiwan is 0050, which tracks the top 50 companies on the Taiwan Stock Exchange.
Suppose you invested $1,000 in 0050 on January 3, 2017, when its price was around **NT$71.9 (~$2.40 USD per share equivalent). By November 1, 2021, the ETF had risen to about **NT$136.75, delivering a 90.2% capital gain.
But that’s not all—0050 pays dividends twice a year. Over five years, reinvested dividends added roughly 29.55% in returns.
Combined:
90.2% (price appreciation) + 29.55% (dividends) = ~119.75% total return
Your initial $1,000 would now be worth **$2,197**—more than doubling your investment through consistent market growth and income distribution.
This makes ETFs an excellent middle-ground strategy: lower volatility than crypto, higher returns than savings, and built-in diversification.
Stock Market Investing: Long-Term Discipline Pays Off
Individual stock investing varies widely based on skill and strategy, but long-term average returns for balanced portfolios typically range between 6% and 10% per year. Legendary investor Warren Buffett averages close to 20%, but that’s exceptional.
Using a conservative 8% annual return (a common benchmark for diversified U.S. equities):
$1,000 × (1 + 0.08)^5 = **$1,469**
Wait—the original article said $1,276? That error likely comes from miscalculating exponents:
(1.08)^5 = ~1.469, not 1.276.
✅ Corrected Result: $1,469 after five years (46.9% total return)
This demonstrates the power of compound growth in equities. While stocks require research and emotional discipline during downturns, they historically outperform savings and many alternative assets over time.
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Bitcoin: High Volatility, Extraordinary Returns
Now let’s talk about Bitcoin—the most well-known cryptocurrency.
On January 1, 2017, Bitcoin traded at approximately $1,000**. A $1,000 investment would have bought exactly 1 BTC**.
By November 1, 2021, Bitcoin reached nearly $60,000.
That’s a staggering:
($60,000 - $1,000) / $1,000 = 5,900% return
Your $1,000 becomes **$60,000**—a life-changing outcome for early adopters who held through extreme swings.
Even if you bought at the peak of the 2017 bubble—around $19,800 in December—you’d still have made:
($60,000 / $19,800) - 1 ≈ 203% return
This underscores a core crypto principle:
What Is HODL?
“HODL” is a meme-born term meaning Hold On for Dear Life. It refers to holding Bitcoin (or other cryptos) regardless of market turbulence. True HODLers believe in long-term value appreciation despite short-term crashes.
It’s not passive—it’s psychological resilience backed by conviction in decentralized finance.
Investing in Dead Coins: The Hidden Danger
Not all crypto investments succeed. Thousands of obscure tokens (“altcoins”) have launched since 2017—many now worthless. These are called dead coins.
If you’d invested $1,000 in one such project in 2017, you’d likely have **$0 today—a -100% return**.
These failures often stem from:
- Lack of real utility
- Poor team transparency
- Exit scams or abandoned development
This serves as a powerful reminder: research matters. Never invest in something you don’t understand or can’t verify.
Summary: Performance Comparison (2017–2022)
| Asset Class | Initial Investment | Final Value | Total Return | Avg Annual Return |
|---|---|---|---|---|
| Savings Account | $1,000 | ~$1,056 | ~5.6% | ~1.1% |
| 0050 ETF | $1,000 | $2,197 | 119.75% | ~17% |
| Stocks (Portfolio) | $1,000 | $1,469 | 46.9% | 8% |
| Bitcoin | $1,000 | $60,000 | 5,900% | ~227% |
| Dead Coin | $1,000 | $0 | -100% | — |
Frequently Asked Questions
Q: Is Bitcoin a safe investment for beginners?
A: Bitcoin is highly volatile and speculative. While it has delivered massive returns historically, it's best suited for those who can tolerate risk and adopt a long-term "HODL" mindset.
Q: Can I lose all my money investing in ETFs like 0050?
A: While unlikely under normal market conditions, all investments carry risk. ETFs are diversified and regulated, making them far safer than individual stocks or crypto.
Q: Why did the original article miscalculate stock returns?
A: It used incorrect exponentiation (e.g., 1.08^5 ≠ 1.276). Accurate math shows ~46.9% growth over five years at 8% annual return.
Q: How do I avoid investing in dead coins?
A: Research the team, whitepaper, tokenomics, community activity, and exchange listings. Avoid hype-driven projects with no clear use case.
Q: Should I only invest in Bitcoin?
A: Diversification reduces risk. Consider allocating across asset classes—stocks, ETFs, and a small portion in crypto—for balanced growth.
Q: Is HODLing always the best strategy?
A: Not necessarily. While HODLing worked well for early Bitcoin investors, periodic rebalancing or profit-taking may suit different financial goals.
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Whether you're drawn to stability or chasing exponential returns, understanding historical performance helps shape smarter decisions. The key takeaway? Doing nothing costs you growth—and informed investing unlocks potential far beyond traditional methods.
Always assess your risk tolerance, do thorough research, and consider starting small before scaling into larger positions—especially in volatile markets like cryptocurrency.