Crypto investing: 5 highly effective strategies for your portfolio (2024)

Investments are the key piece of any financial planning puzzle. These investments could be in market-related instruments like shares, stocks, and bonds or financial institution-related savings and fixed deposit accounts or in gold, real estate, or avenues like art, fine wine, cigars, antiques, and other artifacts. A new entrant to this group is investment through cryptocurrencies.

Multiple reasons have contributed to cryptocurrencies outshining the more traditional forms of investment in recent times. Irrespective of which cryptocurrency or token a person invests in, some inherent characteristics of all cryptocurrencies have made them a darling of all, especially new-age investors.

For starters, any transactions involving crypto are extremely low risk because all crypto is devoid of control of any monetary authority or central bank. A big plus for crypto is that changing economic factors play no role in its rise or fall. Its decentralized position, reliability, and efficiency have made it one of the best and fastest options to increase your investment very quickly.

While a set of regulatory guidelines are yet to be established in India to follow when transacting in cryptocurrencies, the advantages and benefits cannot be disputed. Over the last decade or so, the mindset of investors has been changing, with many leaning more towards adopting cryptocurrency as their primary source of investment to gain significant returns. The skyrocketing advancement in the world of blockchain technology and fintech are to be given a lot of credit for getting more and more investors to switch to investing and transacting in cryptocurrencies.

However, investing in cryptocurrencies, like in other forms of investment needs to be done strategically, linking back to the financial goals of the investor. Given that this form of investment is still very nascent, there are several strategies that investors can choose from, but the ones given are not just popular but also successfully tried and tested.

1) Buy and Hold
The most popular strategy for investors in cryptocurrencies is Buy and Hold. Investors in this strategy hold onto their crypto investments for the long term. Investors following this strategy as part of their financial planning stay committed to the long-term potential and payout of the crypto. Popularly called the ‘Hold on Dear Life or HODL’ strategy goes a long way in testing the belief, resilience, and patience of investors.

2) Day Trading
The opposite investment strategy to HODL that has grown in popularity is the Day Trading strategy. In this strategy, investors are focused on small movements in the market and tailor their activity to make quick returns. A short-term strategy where crypto is purchased and sold in the trading session of the same day. This strategy has grown in popularity due to crypto being removed from any volatility of the financial markets, which can go a long way in making this a rewarding strategy to follow.

3) DCA
A strategy that forces investors into making savings is the Dollar Cost Averaging strategy, where people invest a fixed amount into cryptocurrencies at pre-determined intervals. This creates a routine in the lives of the investors like they would in the case of investing in other traditional forms of investment like an SIP or Fixed Plans. This regularity will help stabilise the crypto investment portfolio and regularise the ebbs and flows of the cryptocurrency market, which will help to customise and if needed, course correct the earlier financial planning strategy.

4) Buy Low, Sell High
A strategy that is fast gaining acceptance and is being adopted by many cryptocurrency investors is the simplest form of Buy Low, Sell High. Simply put, people invest in crypto when the price is low and hold on to the token or digital assets till the price has risen significantly, resulting in the possibility of a nice tidy profit. Getting this right, however, is not simple. To be successful in using this strategy, investors use tools and algorithms like indicators that analyse and track the movement of a portfolio of cryptocurrencies. The most common indicator used is the monthly or weekly moving average used to track trends over a specified time.

5) Arbitrage
Arbitrage Trading is a strategy where investors trade on multiple platforms or exchanges. In Arbitrage trading, investors purchase crypto on an exchange where it is priced lower than others, and depending on when they wish to sell, they will sell the assets on an exchange where the price is higher than the exchange where the crypto was purchased from.

The aforementioned strategies have been extensively tried and tested and have consistently shown high levels of efficacy in generating significant profits. It is recommended that investors conduct thorough research and implement the strategy that aligns best with their financial planning goals. It is imperative for all investors and traders to thoroughly analyze the potential risks associated with different strategies through diligent research before committing to a specific investment approach. Additionally, it is crucial to remain patient, maintain a long-term outlook, and prioritize staying informed on the ever-evolving landscape of cryptocurrency investment.

(Roshan Aslam is the co-founder & CEO of GoSats)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of

Crypto investing: 5 highly effective strategies for your portfolio (2024)


Crypto investing: 5 highly effective strategies for your portfolio? ›

Investing in crypto, still a new and volatile asset class, follows many of the same rules as investing in other markets. The most important rule is never to invest more than you can afford to lose.

What is the best strategy for crypto investment? ›

Best Cryptocurrency Investing Strategies
  1. Buy-and-Hold Investing. Picture this - you buy a crypto asset and tuck it away, like a treasure chest in the depths of the ocean, waiting for its value to grow over time. ...
  2. Day Trading. ...
  3. Arbitrage. ...
  4. Staking. ...
  5. Lending. ...
  6. Dollar Cost Averaging (DCA) ...
  7. Mining. ...
  8. Taking Advantage of Airdrops.
Apr 9, 2024

What is the number 1 rule of crypto? ›

Investing in crypto, still a new and volatile asset class, follows many of the same rules as investing in other markets. The most important rule is never to invest more than you can afford to lose.

How do I choose a cryptocurrency to invest in 5 steps? ›

  1. Step 1: Choose what cryptocurrency to invest in. ...
  2. Step 2: Select a cryptocurrency exchange. ...
  3. Step 3: Consider storage and digital wallet options. ...
  4. Step 4: Decide how much to invest. ...
  5. Step 5: Manage your investments.
Apr 1, 2024

What is the strategy of a crypto portfolio? ›

Maintaining a balance between crypto and traditional investments is crucial, limiting crypto to 5-10% of the total portfolio. Diversification strategies include market leaders, various use cases, smart contracts, major cryptos, stocks, and rebalancing.

What is the most profitable strategy in crypto? ›

1. HODL. HODL is a crypto trading strategy where investors buy and hold onto their cryptocurrencies for the long term, regardless of short-term market fluctuations. It's based on the belief that the value of cryptocurrencies will increase over time, so investors resist the urge to sell during market downturns.

What is the most used crypto strategy? ›

The most popular strategy for investors in cryptocurrencies is Buy and Hold. Investors in this strategy hold onto their crypto investments for the long term. Investors following this strategy as part of their financial planning stay committed to the long-term potential and payout of the crypto.

What is the 30 day rule in crypto? ›

The 30-Day (Bed and Breakfast) Rule - When the same type of token is disposed of and subsequently re-acquired within 30 days, the cost basis of the disposal is matched with the re-acquired tokens using the earliest purchased tokens first.

What is the 90 90 90 rule in crypto? ›

There's a saying in the industry that's fairly common, the '90-90-90 rule'. It goes along the lines, 90% of traders lose 90% of their money in the first 90 days. If you're reading this then you're probably in one of those 90's... Make no mistake, the entire industry is set up that way to achieve exactly that, 90-90-90.

What is the 10000 crypto law? ›

Understanding the $10,000 Crypto Reporting Requirement

The regulation requires businesses to report the receipt of cryptocurrency payments of $10,000 or more. This includes not only single transactions, but also multiple related transactions that collectively surpass the $10,000 threshold.

Which crypto will boom in 2024? ›

1. Dogeverse – A Multi-Chain Doge Token Expected to Boom in 2024. Dogeverse ($DOGEVERSE) is a multi-chain doge-based token. With the ability to “hop” between different networks, eager investors can purchase $DOGEVERSE on six major blockchains, from Ethereum, BNB Chain, and Polygon to Solana, Avalanche, and Base.

Which crypto will explode in 2024? ›

Cryptocurrency Analyst

This article will introduce five top cryptocurrencies that are tipped to explode in 2024: Pikamoon, Solana, The Graph, Sei, and Cosmos. Diving deeper, we'll explore the factors that may contribute to their explosive growth, analyse market trends and insights, and examine investment strategies.

How much can I make if I invest $100 in Bitcoin? ›

How far can a $100 investment into Bitcoin go?
YearBitcoin price on January 1BTC acquired with $100 investment
2021$29,2000.0034 BTC
2022$47,8000.0020 BTC
2023$16,6300.0060 BTC
2024$42,6750.0023 BTC
10 more rows
Mar 6, 2024

How should I diversify my crypto portfolio? ›

To truly diversify, consider exploring niche and high-potential tokens that align with your investment goals. These could include tokens associated with decentralized finance (DeFi), non-fungible tokens (NFTs), or emerging technologies. While higher in risk, these tokens have the potential for significant rewards.

How many coins should I have in my portfolio? ›

No one can tell you what you should invest in or how much you should invest. However, based on how the crypto market works, as well as research data and advisors, you should consider having at least 1% or 2% of your portfolio in crypto assets. If you are more comfortable with higher risk, you can have up to 10%.

What is the recommended crypto portfolio allocation? ›

Our analysis suggests that an allocation to crypto of approximately 5% could help maximize risk-adjusted returns for investors who would otherwise hold a balanced portfolio of stocks and bonds, although allocating to crypto will also tend to increase portfolio risk.

How do you make 1% a day in crypto? ›

In fact, if you earn 1% a day, you will get a 3640% ROI in a year (return on investment): You can easily understand that this is a challenging mission: Earning 1% a day in crypto for a year, starting from $1,000$, you will obtain $37,300 in a year thanks to compound interest.

What is the biggest risk in crypto? ›

What are the risks of owning crypto?
  • Price volatility. ...
  • Taxes. ...
  • User-side risks.
  • Custody of keys. ...
  • Technical complexity and making mistakes. ...
  • Scammers and hackers. ...
  • Smart contract risk. ...
  • Centralization and governance risk.

What is the top layer 1 in crypto? ›

Bitcoin (BTC)

The pioneer of cryptocurrencies, Bitcoin remains a cornerstone in the Layer-1 domain. Bitcoin (BTC) is the first decentralized digital currency, introduced in 2009 by an unknown person or group under the pseudonym Satoshi Nakamoto.

What is the longest chain rule in crypto? ›

So in summary, the phrase "longest chain" refers to the blockchain that has taken the most energy to build. For the most part this is usually the chain with the most blocks in it, but to be more precise it's the chain with the most amount of work in it.


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