Top 10 Crypto Buying Strategies
If you’re bullish on crypto, and especially if you’re a beginner, then this is the article for you. And most importantly, if you want to increase your chances of potentially becoming a crypto millionaire, this article will be helpful for you. Remember, you don’t have to incorporate any of these strategies. I’m not making you do any of these, just giving you a lot of ideas in case you want to see what’s out there. However, the knowledge of all these different buying strategies will help you understand more. It’ll help you become more aware. So use these as a reference point, and then eventually, as you become more advanced, you can build your custom strategy of buying crypto.
1- Buy & HODL
The first one is just buying crypto and holding it. It’s probably one of the most popular strategies. And it’s become kind of the DNA, the identity of everyone who’s been buying crypto, significantly if you’ve been investing in crypto years back, so if you believe that Bitcoin, Ethereum, and other popular all coins are just going to keep on rising.
They’re going to be a lot more valuable in the future compared to right now; then, this is the strategy for you. It sounds pretty simple, but honestly, this is one of the most challenging strategies because it requires you to have a lot of conviction in what you’re investing in. So I do recommend this type of strategy, especially for coins and tokens that you believe in. Because trying to time the market is extremely difficult, we’re going to talk about that in the following few strategies. But basically, just buying and holding is probably going to be the best for you long term.
2- DCA (DOLLAR-COST AVERAGING)
What’s the second strategy? It’s DCA, Dollar Cost Averaging. There are many ways to DCA, but generally, you’re just going to consistently buy crypto every few weeks, every month, whatever cycle is best for you over a long time. A lot of people say, why would you do this? Well, first of all, because it’s challenging to predict when you should be buying and selling. No one knows what’s going to happen tomorrow, the next day, in the future. It’s all prediction. So if you don’t want to stress yourself out about that, then DCA is probably the best strategy for you.
One of the popular ways to incorporate DCA into your investment strategy right now is to take a portion of your paycheck and automatically funnel it into buying crypto. So if you work on 9 to 5 or if you’re consulting, you do contract work whatever way that you’re making money right now, take a portion of your paycheck, a portion of the money that you get for your project from the gig that you’re doing and buy crypto with it. Some people do 1%, some people do 5%, some people do 10%. Do what’s comfortable for you, but basically, this is for long-term holders as well. If you’re going to incorporate DCA, it means that you’re just going to be buying small pieces of crypto over time.
3- CRYPTO TRADING
What’s the 3rd crypto buying strategy? It’s trading.
This could be day trading or swing trading. If you’re the type of person who likes looking at the charts or trying to buy the dips and then selling it at a profit and then doing that all over again, you’re a trader. A day trader does this every day daily hence the name day trader. If you’re a swing trader, then the length of time will be elongated a bit more. It could be every week, two weeks, even up to a month, or longer than that. You’re not making daily trades. You’re looking at weekly or even monthly charts and then trading on that basis.
Generally, I don’t recommend this unless you’re an absolute pro, and honestly, I’ve even seen many pro traders lose money at times. Over time they’re probably going to make some profit, but they do have some stress at times because not every trade is profitable for them. But if you want to go on the flip side of that and think optimistically, some of the richest crypto whales- the ones that have a lot of money in crypto- they’re traders. So you may have heard of people making six figures, seven figures trading crypto whales are the ones who kind of go beyond that, right? They’re making anywhere from 10 to 50 million dollars over a series of trades in a really short period of time.
These are very good at reading market sentiment, they’re good at reading charts, and they’re good at understanding volume and flow. Again, I don’t recommend this to beginners, but if you want to have a little bit of fun, you can take a small portion of your existing crypto portfolio and try it out. But generally, you shouldn’t do this, okay? I’m just giving you a strategy that’s popular right now. A lot of people don’t know that you can day trade crypto. Again, crypto markets are pretty much going to be open 24/7. So that’s fun for traders. There’s also Margin, there are Futures probably shouldn’t do that, okay? I don’t recommend that I’ve seen many professionals lose a ton of money doing that.
So don’t go down that path, but for some people who like investing and you want to get good, this is what advanced crypto traders do. There are even average crypto traders people who are just kind of good at it. They’re not complete pros at this who do successfully swing out of trades because they’re able to identify bear markets. They swing out of their positions, and maybe they re-enter because they’re able to buy their favorite altcoins, whatever crypto they’re trying to buy at the same price that they were able to buy it may be months before or a year ago, so it kind of feels like you’re resetting the whole thing. You’re getting a deal, and others swing out of positions. Maybe they get out of Bitcoin and Ethereum, and they go into stablecoins or other coins that give them APY; they’re staking their coins. So that they can earn more while they’re also holding their favorite assets. So if you want to combine the previous things that I talked about, the long-term hold, DCA, and then staking, that’s a deadly trifecta. So I highly recommend understanding that as a possible combination because that’s something many people are trying to do right now. And even if you’re average at it and you don’t even really try to trade that much, just long-term holding and DCA, that’s going to be a perfect duo for you.
4- Bitcoin & Ethereum X Altcoins
I call this Bitcoin and Ethereum times Altcoins. One of my favorite strategies is buying Bitcoin and Ethereum because those two are popular. There are many use cases for it, and many newbies are trying to get into this space. They are probably going to buy Bitcoin and Ethereum first. So there’s a lot of foundation right now. And there’s going to be a lot more money funneling in in the future. Well, after you start doing that, you’re probably going to get bored. Just buying Bitcoin and Ethereum gets boring for a lot of people. And honestly, if you’re doing that, you’re probably curious to understand the next altcoins or what the next Bitcoin and Ethereums will be. Well, altcoins are anything besides Bitcoin.
Technically, Ethereum is also an altcoin, but I think at this point, it’s safe to say that Ethereum’s not really like the other altcoins. It’s kind of more powerful; it’s been around a lot longer, there’s a lot more branding, it’s just almost on the same level as Bitcoin. So there are many people out there who invest in altcoins and hold them long-term, or they invest in those they make some profit, and they take those profits from those altcoins, and then they buy more Bitcoin and Ethereum with it. That’s why I call it the Bitcoin and Ethereum times altcoin strategy. Because you’re using altcoin as a vehicle to gain profits, seemingly, this is going to be pretty tough in a bear market. However, assuming that everything works and the altcoins you invest in bring good returns, you can get some more ETH and BTC with these returns.
I think it’s really important to talk about memecoins. You know, the ones you hear about either in the news or from your friends, maybe you get a random text or see it online even through an ad. Honestly, I’ll say it right now this is pretty similar to gambling. You can argue that you can get a lot better odds if you go to the casino and play some other types of games. But for some people who want to get into the memecoin hype, again, I caution against this because it’s very dangerous. There could be a huge spike, and then everything could drop because it was a massive pump and dump. It was completely manipulated.
But for some people who want to understand how to find it, here are some tips; You have to know how people are talking about this, how they are relaying messages, their thoughts, their ideas, what they’re actually going to be buying. This could be Discord, Telegram, Reddit, and Twitter, and those are the popular ones if you follow a lot of those channels, rooms, communities, websites, forums. You’re going to get some sense of what’s popular right now. You have to pay attention to conversational pumps. What are people talking about? It’s on Youtube, Podcasts, even sites like lunar crush; they start aggregating a lot of the sentiment, and they start really pushing out the data and showing you what’s active what’s really popular on social media channels. If you want to go even deeper than that, you really have to dive into private telegrams and discords.
A lot of it’s probably going to be coordinated pumps and dumps, but there are ways actually to make a profit if you’re smart about it. Don’t get too greedy. Then you can take that profit and again buy your favorite stuff like Bitcoin and Ethereum. It’s kind of hard to identify what’s actually a scam and what will be around for the future. So again, I don’t recommend this; I’m just showing you a way that people are actually making a lot of money in crypto right now.
6- Using Trading Bots
There are hundreds of these; actually, there are thousands of these. There are even ways to back check the previous market cycles, previous market movements. And see if that trading bots algo, the system that it’s using the conditionals the logic has a good chance of actually working again in the future. Have these made people a lot of money? Yes, they have. Have they also lost people a lot of money? Yes, they have. That’s why with anything involving trading, even if it’s with an algo that claims to make you money, you have to be kind of careful. There are even ways that you can make your own. As you start understanding your strategy and keep on doing something manually, why not have an algo do it for you, especially if you don’t want to look at it anymore. Some people trust their favorite exchanges.
I know Kucoin has one. You can also look at some open-source options. Again I don’t necessarily recommend this or don’t think you need this, especially if you’re incorporating the first few strategies, long-term holding, and DCA. Still, for some people who want to see how you can make more money in crypto, what methods people are using, that’s one smart way.
7- The Three Tiers
What’s the next popular crypto buying strategy? I call this The Three Tiers. And the three tiers are blue, green, and diamond. So you’re basically categorizing your buying. Into three equal strategies, it’s almost like a three fun portfolio but for crypto.
What’s the first tier? I’m going to call it blue chip. Bitcoin and Ethereum are the two that you buy with your first allocation. 33% of the money that you’re going to be having is in crypto. It’s called blue chip-like stocks. It’s a respected company or project, and in this case, Bitcoin and Ethereum, many people trust those projects. It’s more about the brand name, longevity, something that you can rely on to hold long term.
What’s the next 33%? I call it green cryptos that you need to buy. Because there’s a chance that it’s going to make you a lot more greens, a lot more money. Find the next popular ones; what are the next ones after Bitcoin and Ethereum? You could look at the popular ones based on market cap but see what other people are talking about. But do your research. Look at the top cryptocurrencies by market cap and scan through the top 20, the top 30. Look into all of those projects and find the one that you think will have a future. That’s what you should spend 33% of your money on if you’re using the strategy.
I’m calling it Diamond because that’s how you’re going to find crypto gems. And if you find good ones, then it’s definitely worth 33% of your portfolio. These are coins with a low market cap. Anything under 100 million, I would consider that low market cap even lower than that. I mean, it’s pretty much whatever criteria you set. Maybe it’s something even besides monetary value, besides market cap. You’re just looking at things outside of the top 100 or barely in the top 100 by market cap. Again this strategy is mostly for people who kind of want to have a lot of diversity.
You choose the allocation that you want. You don’t have to do Bitcoin and Ethereum. You could do Bitcoin or Ethereum. And then for the green crypto opportunities, the ones that are medium-level but have a chance to be strong later on, maybe you only choose one, or maybe you choose 10. And then for the crypto gems, maybe you’re only choosing one, or you’re choosing up to 50 different ones. So it depends on how much money you’re investing overall in your entire portfolio. And again, you don’t have to do equal distribution. You could always shift it around. For example, some people like to invest 80% of their investment in Bitcoin and Ethereum, 10% in other altcoins, and the remaining 10% in crypto gems.
8- Crypto + Stocks
This is a hybrid model, and it’s almost worth not mentioning here. But I want to say it here because I see so many people making money with this. It’s crypto and stocks using that hybrid model. It’s a viral strategy right now. Buying Bitcoin and Ethereum, you don’t like the prices, or you made a profit, swing out go into some other popular stocks. What’s popular in the communities right now? Something like Gamestop, Amc stuff like that. Again, you have to be careful about swinging into and out of positions because, first of all, there will be many tax liabilities, and that’s just hard to record later on. Otherwise, there’s a huge chance that you lose money along the way. But for people who look at those charts very deeply understand the movements and the volume of the money flow going in and out Bitcoin, Ethereum, Gamestop, AMC. If you know what’s going on and you can see opportunities to either buy more DCA into some of your favorite crypto and stocks out of those four and then maybe swing out of certain positions and gain profit. Just going across boundaries. Crypto to stocks, stocks to crypto.
There’s a lot of opportunities there. Again, you don’t even have to incorporate Bitcoin or Ethereum, and those are just two examples. You can do other altcoins. You don’t have to do Gamestop or AMC, and those are just two examples too. Feel free to mix and match whatever other types of stocks brands project that you like. It’s just giving you the idea that you don’t have to make money in crypto. You can also swing out of the crypto market at times and go into the traditional stock market.
9- Bitcoin Maximalist
Basically, they only want to buy Bitcoin. Again this doesn’t mean that you have to buy an entire Bitcoin. Some people think that that’s the thing that you have to do, you don’t have to do that, okay? That’s a significant five-figure investment that’s a lot of money for people. For some people, that’s your entire life savings. That’s not what you have to do. You can stack Satoshis. That’s a fraction, just the unit of Bitcoin. Other people may think that Satoshi is an actual coin or token that you’re buying. That’s not what it represents-. You can’t buy that somewhere. It’s just buying a percentage of Bitcoin. 10,20,50 bucks, and then over time, your goal is to have one Bitcoin to own one Bitcoin probably, and then hopefully over time, you have more whether you’re only using this strategy or you’re incorporating the other strategy that I talked about. Again some people are just really bullish on just Bitcoin, they love Bitcoin, and they only want to buy Bitcoin. This is the strategy for you.
10- Multiple Coins X Multiple Exchanges
The 10th crypto buying strategy is viral. It’s buying and holding crypto at multiple crypto exchanges. I’ve mentioned this before, but it’s worth mentioning again because most crypto millionaires that I see have more than one crypto account, so if you’re using Coinbase or Gemini or Robinhood, you probably need to explore other exchanges. Because there’s a significant limitation to what you’re able to buy at those exchanges. There are hundreds of more altcoins. So I highly recommend that you visit all of these websites, the top 10, the top 20, to see all the ways that people are buying crypto right now. If you have an account at Coinbase, Gemini, Robinhood, whatever you’re using exactly the popular ones, it’s challenging to get in on the new crypto altcoins out there.
Millionaires are trading all of the accounts that they have at these different exchanges as different portfolios. Usually, they sign up for a new exchange to buy one or two altcoins that they like specifically. Because they know that if they can get their hands on it early on at this Exchange once it goes to the popular ones like Coinbase or Gemini or Robinhood. There’s a bigger chance that the coins they bought early on the prices they got in at those levels are really low compared to what it will be in the future. Again Coinbase, Gemini, Robinhood are very mainstream apps. You have to start exposing yourself to seeing different trends, what projects are coming out, and even marketing themselves at those exchanges. Maybe those are good opportunities now, or maybe you’re going to hold off on it. Maybe you’re going to look into a coin or token built on the thing that was just mentioned. You can’t see that if you use mainstream apps. You have to explore outside of those.
Check all the different popular exchanges in the top 10, 20 explore everything. Even if you don’t make an account, that’s okay. Just visit the website and check it out to see what opportunities are out there. Again, I’m not forcing you to do any of these strategies right now. It’s probably the simplest to buy your favorite crypto altcoins and the main ones, of course. Just buy it and hold it for a very, very long time. It might be better for you not to look at your phone so much. Hold it and check back years later. But for others who are curious, who are just trying to see the opportunities want to know how millionaires are making more money, they’re using strategies like this. So be curious because you’re still very early in the space it’s a lot more opportunities coming, a lot more projects, and enjoy the ride and let me know which one of these is your favorite crypto buying strategy right now.