In this article, we will discuss the best Cryptocurrency investment strategies 2024.
I’ve listed a few strategies directly, as well as some non-direct but way more important fundamental strategies as well.
It’s all free and only requires some studying up on your part. Let’s get started then!
Disclaimer: Nothing in this article is financial advice. It’s purely for educational and research purposes.
Table of Contents
Do your research
There are multiple reasons why I’m including this at the top here. For starters, most new investors lose money because they listened to some social media influencers’ buy/sell calls. Secondly, each cryptocurrency project has its own potential, risk:reward scenarios and overall goals. These goals may suit some while not others depending on their financial circumstances.
Here are some tips you can use to do your own research before jumping in on Cryptocurrency projects:
- Read the whitepaper: This is like Crypto’s resume. It details the purpose, roadmap and everything else. It’s the best place to start understanding any project.
- Understand its USP: What makes the Cryptocurrency unique, or worth it? What problem does it solve?
- Analyze the creators/team: Just like a sports team, the team’s value and potential is decided by its players. Similarly, the creators of the Cryptocurrency and the team behind it determine how profitable or future-proof the Cryptocurrency is.
- Market cap and volume: Market cap tells you the entire worth of the Cryptocurrency in circulation. Trading volume tells you how much of the Cryptocurrency gets traded in a specific time-frame. The higher these are, the better.
- Regulation: The govt. It is more hostile towards some Cryptocurrency than others. It always helps to check their stance before putting in money.
Some Cryptocurrency investment strategies for 2024
Here are some direct strategies that you can implement for your investments:
- Hold: Buy Cryptocurrency and forget about it. Mathematically, regardless of when you bought Bitcoin, you’d be profitable if you purchased Bitcoin anytime in the last 13 years (except the last 2 months, i.e. May-June 2024)!
- Day trading: This strategy involves buying/selling coins within a 24 hour period. There’s no long-term holding. Do note that this is pretty risky.
- Staking & lending: They’re similar but not identical. Stalking means you buy Cryptocurrencies and keep them in a specific wallet/exchange. Lending means you lend out your Cryptocurrency to a third-party. In both the scenarios, you earn almost guaranteed interests.
- DCA: Dollar Cost Averaging simply means buying Cryptocurrency at regular intervals, regardless of the price or market conditions. This of course is a long-term strategy.
Diversify
Never put all your eggs in one basket. No matter which Cryptocurrency you’re investing in, no matter how powerful the project is, never go all in.
Either put your money in multiple Cryptocurrencies or simply keep them in Stablecoins for future investments.
Invest what you can lose
Only put in what you can afford to lose. Regardless of the project’s potential, it can always go in the negative or even zero. Of course that’s very rare and doesn’t happen to well-established projects but the probability is never zero.
Hence, never invest using credit cards, loans or other such instruments. Success stories may exist on the internet but I assure you there are more failure stories.
Technical Analysis
Once you’ve got the fundamentals of a project clear, it’s the technicalities you need to focus on.
Here are a few things you can look at:
- Moving averages: These give you an average of the price movement over a specific time-frame.
- RSI (Relative Strength Index): This tells you if a particular coin is overbought (has potential to go down) or oversold (may go up).
- Chart patterns: There are dozens of chart patterns you can learn and analyse.
Do note that TA is a massive subject. It takes weeks and months to get some of it right and even then it doesn’t guarantee profits.
Get a mentor
If you’re on this piece, you’re definitely new to Crypto or aren’t profitable yet. Sure, you can learn everything on your own. But that would not just take time and effort, but also a lot of money. You’d be making a lot of wrong trades before the right ones.
It’s best to get a mentor or a group of mentors who understand you, your risks, current knowledge and guide you forward.
Now, there are dozens of groups doing this, many of which may be fake and scams.
This is why it’s best to use free mediators like GPT 2.0 ( Visit https://bit-gpt-app.com/) or any other you feel comfortable with.
These platforms connect you with a legitimate platform who may guide you with your investments.
Understand wallets vs. exchanges, investments vs. trading
When starting with Cryptocurrency investments, ask yourself a very important question. Are you in for the long haul, or are you looking for short-term profits? Both are viable strategies, but depending on the time-frame a few things would change for you.
- Investment vs. trading: Investments are generally long-term. You wouldn’t check the account for a few months or years. Trading on the other hand requires you to frequently buy/sell and exchange one coin for another.
- Wallets vs. exchanges: Wallets are generally for long-term storage. You even get offline wallets and paper wallets which are way more secure. Exchanges facilitate more frequent trades but are less secure.
Hence, depending on your time-period, you must choose either the more secure wallets or the more feature-rich but less secure exchanges to store your cryptocurrencies.
Conclusion
These were some strategies for Crypto investment that may increase your chances for profitability. Of course, there’s no guarantee. No one can predict the market, especially something as decentralised and open as Cryptocurrencies.
Do note that no strategy would work if your project isn’t strong enough, this is why I recommended getting a mentor earlier or doing solid research on your own.
If there’s one investment strategy I could share with you, I’d say HODL (Hold On for Dear Life). Buy good projects (Top 5 Cryptocurrencies) and stop looking at the charts everyday. Give it a few years and then you can come back to this article and thank us.
