Bitcoin investing doesn’t require large sums to begin. I’ll share my systematic approach to building a Bitcoin position through small, regular investments.
My Investment Strategy
I created a simple scaling plan: £1 weekly for month one, £2 weekly for month two, £3 weekly for month three, and so on. By month twelve, I’m investing £12 weekly. This gradual increase makes the investment manageable whilst building a small meaningful position. The total invested over the next 12 months will be £312.
Remember, this is just my example—you can set your own amount based on what you can afford to invest and potentially lose.
Understanding Bitcoin Returns
Bitcoin’s historical performance shows an average return of roughly 85% annually over the past decade. However, this comes with significant swings. For example, Bitcoin rose over 300% in 2020 but fell about 65% in 2022. Using a conservative estimate of 80% return for 2025, my £312 investment could grow to approximately £423 by the end of 2025.
The Power of Pound-Cost Averaging
This investment approach uses pound-cost averaging – investing fixed amounts at regular intervals regardless of price. When Bitcoin’s price drops, your regular investment buys more Bitcoin. When prices rise, you buy less. This strategy helps manage Bitcoin’s volatility and reduces the stress of timing the market.
Two Ways to Invest: Direct or ETF
- Direct Bitcoin Investment:
- Cryptocurrency exchanges like eToro offer direct Bitcoin purchases
- Requires setting up a digital or physical wallet for secure storage
- Gives you full control of your Bitcoin
- Often has lower fees than ETFs
- Bitcoin ETFs (Exchange-Traded Funds):
- Recently approved in major markets
- Trade like traditional shares
- No need to manage digital wallets
- Available through standard investment accounts
- Usually have higher management fees
Getting Started – My Platform Choice
Whilst I use Kraken for my broader crypto investments, I chose eToro for this particular strategy. eToro’s advantages include:
- FCA regulation ensures UK bank acceptance
- Simple interface suited for beginners
- Ability to start with small amounts
- Option to buy both direct Bitcoin and Bitcoin ETFs
- Built-in educational resources
eToro’s minimum investment is £8.30 per trade, so I’ve rounded up my January and February contributions and started with £13—covering £5 for January and £8 for February. For March, I’ll invest £15 (£3 per week). The table below will be updated at the end of each month.
Important! Crypto investments are not regulated in the UK and are not protected by the Financial Services Compensation Scheme (FSCS). This means that if you suffer a loss, there is no government-backed insurance covering your investment, unlike deposits in a bank account or investments in regulated financial products.
2025 Returns
| Month | Invested | Returns | Balance |
| January | £13 | 9.48% | £14.23 |
| February | – | -17.62% | £11.72 |
| March | £15 | – | £26.72 |
| April | |||
| May | |||
| June | |||
| July | |||
| August | |||
| September | |||
| October | |||
| November | |||
| December |
Remember that Bitcoin remains a high-risk investment. Never invest more than you can afford to lose, and consider it as part of a broader investment strategy.
These investment demonstrations use small amounts purely for educational purposes. Each example on this website uses micro-scale investing to show how various investment platforms and strategies work. Whilst these examples demonstrate the mechanics of investing, successful long-term investing typically requires careful planning and larger sums. Always research thoroughly, understand the risks, and never invest more than you can afford to lose.
Disclaimer: This article reflects personal experience and shouldn’t be taken as financial advice. Always research thoroughly and consider consulting a financial advisor before investing.
