I am a true believer in crypto. I loved the technology and the communities and I am very hopeful for the future of web3.
So, I thought, this is it. I need to be part of it, financially. And so, I came up with an investment strategy using the concept of Goals & Systems.
And in this article, I am gonna talk about my investment strategy and at the same time, will reveal some actionable tips that can help you build your own investment strategy.
Disclaimer: This article contains information about my investing process but it should not be taken as financial advice and there is no guarantee that I’ll be profitable in the future. Always DYOR when investing.
I can’t tell you what coins to invest in or how much money you should put on crypto because that depends on your financial situation, interest in crypto, and probably a lot of other factors.
And so, I am gonna walk through my investment strategy – The How, Why, and What part, the ultimate goals, and also the conditions/exceptions I’ve set for myself based on my financial situation and also on market conditions.
Let’s look at what each of those things means in detail:
Of course, the ultimate goal of any kind of investment is to make money.
But the question one should ask themselves is whether they are investing the money to get rich by tomorrow, or maybe in a week, or maybe in a decade.
My goal is to invest for the long term, instead of trading crypto regularly (buying and selling constantly). When I say long-term, I am talking about years.
And since I’ve decided to stay in the market for the long term, I only have one goal and that is to accumulate more assets for as much less price as possible in the long term.
How do I do that? By investing regularly. In other words, Dollar-cost averaging.
You know you can’t time the market. Especially crypto markets with all of their volatility, it’s almost impossible.
Ok, my goal is clear. Which is to accumulate crypto assets consistently for a long period of time for as low a cost as possible.
And to achieve that goal, I need a system that can rely on, instead of throwing money on a bunch of random coins.
As of March 2022, there are 18000 cryptocurrencies in existence and the number will only go up as we move forward.
Although most of these will be trash, it’s hard to grasp and stay updated with all the happenings in the crypto world.
And in the end, I’ve decided that I’ll go with only 10 cryptocurrencies in my portfolio. The system is based on the ‘How’, ‘Why’, and ‘What’ of these 10 cryptocurrencies.
Why only 10 cryptocurrencies?
I got to know about crypto and NFTs in August 2021 and since then I’ve bought a few, traded a lot, made a few profits, and in the end sold a lot for losses to pay the taxes.
All this happened in less than 7 months and I came back to where I started. Yes, I made a lot of mistakes during that period.
And on top of that, India came up with new tax rules that aren’t supporting crypto investors well.
You know the famous quote, right? “Your losses. Our profits”. Well, that’s how the government of India reacted to that. And so I had to decide on some points.
Ok, but what are those 10 coins?
There are a few conditions that I’ve set to figure out what will be those currencies.
So, based on these 3 conditions, here is the list I made (10 cryptocurrencies):
L0: PolkaDot (DOT)
Atl L1: Solana (SOL), Avalanche (AVAX), Fantom (FTM), Near Protocol (NEAR), Harmony (ONE).
L2: Ethereum (ETH)
Data Economy: Filecoin (FIL), Chainlink (LINK)
Metaverse/Gaming/NFT: Enjin (ENJ).
Ok, now that I have the list of coins, what’s the best strategy, or simply put how do I invest in those?
Well, here are the ratios I chose based on the categories. And I’ve decided to allocate most of my budget to a blue-chip crypto – Ethereum.
This is how I allocated my investing budget (in %s):
| L2 (1 coin) | 70% |
| L1 + L0 (6 coins) | 24% |
| Data Economy + Gaming/NFT (3 coins) | 6% |
So, if 100$ is my investing budget, this is what the portfolio is gonna look like:
| Categories | Coins | Budget |
| L2 | ETH | 70$ |
| L1 | AVAX | 4$ |
| L1 | SOL | 4$ |
| L1 | NEAR | 4$ |
| L1 | FTM | 4$ |
| L1 | ONE | 4$ |
| L0 | DOT | 4$ |
| Data Economy | FIL | 2$ |
| Data Economy | LINK | 2$ |
| Gaming/NFT | ENJ | 2$ |
Well, now that I have the clear %s that I’ve decided to invest in each of these coins, all I need to do is every month allocate a certain % of my earnings to build a portfolio.
I’ll be updating my ROI here (roughly on a monthly basis) just so you can see how my investment is going on (ROI from my investment in all of the 10 currencies)
| Date | ROI | Monthly Notes |
| April 4th, 2022 | 0% | First Investment |
| May 1st, 2022 | -22.9% | Bought the dip |
| June 2nd, 2022 | -24.02% | Didn’t invest |
| July 1st, 2022 |
So you have decided that you are gonna put some % of your income that you earn into crypto. How do you start?
The first thing is to get into crypto. And that means focusing more on educating yourself before investing. Learn more about these technologies and tokens and stay active on Twitter.
Once you have some idea of what’s happening in the crypto world, decide on your goal and then create a system that you can rely on.
Focus on the goals. Rely on the system. And stay in the game for the long term. You should be fine.
#CryptoForLife