Best Cryptocurrency Investment Strategy For 2024

Discover the best cryptocurrency investment strategy for 2024. Get expert tips and proven methods to maximize returns and minimize risk. Whether you’re new to crypto or a seasoned investor, this guide has everything you need to succeed.

The cryptocurrency world has come a long way since its launch in 2009, Bitcoin has rewarded early investors with huge ROI from the initial price of around $0.09 to an All time high of $69000.

Over the years, strong Altcoins have launched their projects and rewarded their investors with huge rewards for their trust. However, despite the promise of a huge ROI if you invest in a solid cryptocurrency project, it’s hard to come across these projects.

As a matter of fact, there are more than seventeen thousand cryptocurrencies on different blockchains. But most of them are bad projects that will rekt your investment which is why you need to be able to discern a real project from a scam project.

Cryptocurrency Investment Strategy For 2024: Expert Tips and Proven Methods

A lot of people invest in Shitcoins, Scam projects such as rugpulls and Honeypots and therefore conclude that cryptocurrency is a scam. However, they’ve failed to gain Knowledge about how the cryptocurrency world works.

Here are the important things to do to make money from cryptocurrency.

Learn

If you don’t even know what HODL, DYOR, Decentralized finance and other cryptocurrency terms mean and you’re investing thousands of dollars in various cryptocurrency projects, then you’re making a big mistake and putting your investments in grave danger.

The golden rule of investment is to never invest your money into something you don’t understand. If you want to be successful as a cryptocurrency trader/investor then you have to learn the ropes of cryptocurrency first. To avoid regrets make sure you understand how cryptocurrency works along with basic knowledge in concepts such as DeFi, Blockchain technology and market trends.

Learn first then remove the L and earn.

Research The Team/Community

So you’ve gained enough knowledge about the digital currency industry and you’re now ready to invest in a project. The first thing you should do is find out about the developers of the project. Make sure you get necessary information about their track record and previous projects through social media and search engines.

Check if the community is active, a dead community is a dead project, make sure the Devs are attending to questions and active on the group.

Enquire About The Project’s Marketing Plans

Ask if they have marketing plans for the Coin and what marketing plans are in place. A Good coin isn’t enough, Marketing is vital to the success of a Cryptocurrency project. Many Shitcoins (Memecoins) have higher value than a lot of solid projects with use cases due to their marketing.

Never invest in a project with a pump and dump strategy; your money might end up being used as exit liquidity for smart early investors.

Avoid Unrealistic Projects

So the White paper (Roadmap) promises too much in a short period of time? avoid the project. Follow projects who have plans that are achievable, realistic and are following their project’s roadmap. Make sure the project’s aim is achievable with the resources at the dev team’s disposal.

Use DCA (Dollar Cost Averaging)

Dollar Cost Averaging is when an investor sets apart an amount of money which he invests into a project at regular intervals so as to reduce the Risks of market volatility.

To illustrate, if you have $10000 to invest in a project you can invest the money at once. However, DCA involves you buying into the project in bits, you can buy with a $1000 at a time, when the price dips you buy more into the project.

DCA isn’t needed if you’re Scalping for short term profit. However, Averaging into a project reduces the price of your initial investment. 

For example, Trader X buys BTC at $10000, he invests $5000 once hence buying 0.5BTC.

Trader Z uses DCA, He has $5000 to invest, he also buys $1000 worth of BTC (0.1BTC) when BTC is $1000, When the price of BTC dips to $8000 he buys $800 worth of BTC (0.1BTC) after a month, Bitcoin retraces to $6000 and Trader Z decides to invest the remaining $3000 in BTC (He gets 0.5BTC). 

Overall Trader X got 0.5BTC while Trader Z got 0.7BTC despite both investing the same amount.

Now think about the profits both of them will have when Bitcoin’s price hits $20000 despite having the same total investment.

Invest what you can afford to lose

Never invest funds that are important to you in a Coin, never sell your properties to invest in a coin. The crypto market is highly volatile and unpredictable. It will be foolish to sell your house and invest in a project only for the Devs to abscond with Investors funds.

In addition, keep in mind no one has a clean record in the cryptocurrency world, everyone has lost their funds at one point in their crypto journey which is why you shouldn’t invest a huge amount of money in a highly risky project. 

Invest In Low Cap Gems And Move Your Profits To Solid Projects

A lot of people make the mistake of investing their profits in a new project. Make sure the most part of your profit that you want to invest back into the market goes into strong and established projects such as ETH, BNB, DOT, SOL and FTM e.t.c.

Don’t take the profit from Project A and invest it in Project B, you may end up losing your investment. Established projects don’t promise a 100x return but they come with less risk.

Low cap gems come with huge potential profits so it’s advisable you do the hard work of unearthing them. Centralized exchanges such as Gate.io and MEXC are great places to find low cap gems with solid utility.

Avoid Greed (Always Take Profit)

I invested in a project at an initial price of $0.27. After a few days the price moved to $1.96 but I didn’t take profit. I wanted the price to get to $20 before selling, a few days later the price dumped to $0.09 and I had to wait for the coin to pump back even if it’s to my initial investment but it never did.

It’s good to be a diamond hand but set realistic goals as you HODL your bags, once you see profit, sell your initial investment plus some profits then leave the rest to run. 

Most people buy into a project, see profit but don’t sell because they think the coin can still do 10x, then end up selling at a loss due to a retracement.

Have A Hold Period/ Exit Strategy 

The difference between a successful crypto investor and an unsuccessful one doesn’t only count down to their knowledge. Plans play a huge role in your cryptocurrency journey, don’t just invest in a coin just because it’s a good project. Know when to buy and when to sell!

Decide how long you want to hold the coin, is it a long term investment or you’re just in it for the short term profit (Scalping), also plan your exit strategy (Whether you’re selling your initial investment first, then take profit or you’re selling your whole investment once).

Related: Centralized and Decentralized Cryptocurrency Exchanges: Pros & Cons

Follow trends

If there’s a segment of crypto that is making people money at the moment, invest in it if after doing your research you find out the project or market trends won’t last long, take profit and move on to solid projects. 

Have Stablecoins so you can buy the dips

The law of gravity also applies to Crypto, therefore there’ll always be market retracement at certain times.

Stablecoins help you avoid market volatility to an extent due to their price being static. Which is why a percentage of your portfolio should be in stablecoins such as USDT, USDC or BUSD so you can take advantage of the dips.

Never Invest By Looking At The Price

Let’s be honest, Price is important when investing in a coin, however do not buy a coin just because it’s less than a dollar or because you can buy millions of the coin and become a millionaire when it’s price hits $1.

For smart Investors, Utility always comes first before considering price.

Invest in other aspects of Crypto

Do you know there’s a chance you’re not making money in Crypto because you’re not thinking outside the box or investing in other aspects of Cryptocurrency.

There are many ways to earn from cryptocurrencies but 99% of Crypto enthusiasts only trade and buy & HODL coins. Mining, airdrops & forks, staking & lending and providing liquidity are some of numerous ways you can earn with cryptocurrency.

Conclusion

It’s good to always have doubts about a project, It only means you’re being critical as you invest. Also, bear it in mind that you can never buy the bottom price of a coin and sell the top price. Therefore, it’s either you regret not getting in earlier or not waiting longer.

One thing is dominant in Crypto, “Regrets”, as a cryptocurrency Investor you will have regrets just make sure you do your best so that your wins are more than your losses.