Level Up Your Crypto Strategy: Advanced Tips for Building a Winning Portfolio (Part 2)
Take your crypto investing to the next level! Dive into advanced strategies like staking, altcoins, NFTs, and portfolio structuring. Build a balanced, successful portfolio and avoid common pitfalls.
If you're just starting your crypto journey, make sure to check out Part 1 of this guide, where we covered the foundational aspects like Bitcoin, Ethereum, and the basics of making your first investment.
In this continuation, we’re going to level up by diving into strategies that will help you build a stronger portfolio and confidently navigate more complex markets. From smart investment strategies to advanced tools, you’ll find the next steps to enhance your crypto knowledge and growth.
How Much Should You Invest?
In the first part, we introduced the idea of starting small and scaling up your investment gradually. Now, let’s take a deeper dive into managing your investment amounts as you gain more confidence.
Start Small: Allocate around 1-5% of your total investment portfolio to crypto. Even small amounts like $10, $50, or $100 can give you the opportunity to learn the ropes without risking too much.
Co-founder’s Advice: Our co-founder shared his approach in a recent video addressing this exact question:
"Someone earning $3,000 a month will invest differently from someone earning $30,000 a month. First, take care of your financial planning—account for necessary monthly expenses, upcoming big purchases (like a house or renovations), and whatever’s left is your spare cash savings. As a rule of thumb, we generally suggest investing 10% of those savings into crypto, as it is a high volatility asset. Depending on your age, experience, and earning ability, that 10% could vary slightly higher or lower."
This personalized approach ensures that you are investing responsibly while considering your unique financial situation.
Scale Up Gradually: As your confidence and understanding of the market grow, you can gradually increase your exposure to crypto. However, the golden rule is to invest only what you’re willing to lose, especially in these highly volatile markets.
Earning Potential: Making $100 a day in crypto is achievable but requires more advanced strategies, discipline, and experience. In this section, we’ll introduce methods that can enhance your earning potential, such as staking and crypto options.
Advanced Crypto Strategies
Now that you’ve established your footing in crypto, let’s explore some more sophisticated strategies to help you grow your investments. While these methods can offer great rewards, they also come with increased complexity, so it's important to approach them with care—and ideally, with the right guidance.
Staking
Staking is a popular strategy for those who prefer a more passive approach to earning crypto. By locking up your cryptocurrency to support the operations of a blockchain network, you can earn rewards simply by holding certain coins. This strategy is low-risk compared to active trading and is great for long-term investors.
Example: Ethereum 2.0’s transition to proof-of-stake has made staking a sought-after choice for earning passive income, with opportunities to earn annual yields.
However, staking can come with hidden complexities, including potential risks tied to network security or liquidity issues. Before jumping into staking on your own, it's wise to get a full understanding of how it works—preferably from someone with experience.
Crypto Options
If you want to take your trading to the next level, crypto options trading allows you to profit in both bullish and bearish markets. Options give you the flexibility to speculate on price movements without needing to buy or sell the underlying asset. That said, options trading carries higher risks and requires a deep understanding of market conditions.
Tip: Options trading is more of a probability game, where the balance of risk and reward can quickly shift. It's a powerful tool, but only when you fully understand how it works. We strongly recommend not diving into crypto options alone—having a guide to walk you through the ins and outs can make all the difference.
Dollar-Cost Averaging (DCA)
This is a strategy we touched on in Part 1, and it remains a powerful tool for mitigating risk. DCA allows you to invest a fixed amount at regular intervals, no matter the market price. By spreading your purchases over time, DCA helps smooth out the volatility of the market, ensuring you don’t fall into the trap of trying to time it perfectly.
Altcoins: Going Beyond Bitcoin and Ethereum
While Bitcoin and Ethereum are solid foundations, the world of cryptocurrency is vast, with thousands of alternative coins (altcoins) that offer new opportunities. However, altcoins come with their own set of risks, so it’s important to evaluate them carefully before investing.
How to Evaluate Altcoins
Here’s a simple five-step framework to assess whether an altcoin is worth your investment:
Use Case: What problem does this coin solve? Does it have a practical application that sets it apart from others?
Team: Who’s behind the project? Research the team’s background and track record to gauge whether they have the expertise to succeed.
Community: Is there a strong, active user base supporting the coin? Coins with large, engaged communities often have a better chance of long-term success.
Partnerships: Does the coin have backing from credible companies or partnerships with established projects? Strong partnerships often indicate legitimacy and growth potential.
Tokenomics: What are the supply, demand, and reward structures of the coin? Coins with poor tokenomics can struggle with long-term value.
Risks of Altcoins
While the potential rewards of altcoins are enticing, they are often more volatile than Bitcoin and Ethereum. Many projects lack strong use cases or experienced teams, and some may even be abandoned. It’s important to research thoroughly and understand that some altcoins could fail completely.
One of the benefits of being part of our community is that we do the hard work for you—evaluating projects and recommending coins that we ourselves invest in.
💎 For example, our principal trainer AK recently shared his thoughts on a hidden gem, Toncoin ($TON). Want to know why $TON might be worth adding to your radar? Check out AK’s latest analysis here.
NFTs: Staying Prepared for Future Opportunities
While the NFT space may not be making headlines like it once did, significant work is still being done to increase the utility and real-world applications of NFTs. From gaming to digital ownership in various industries, NFTs continue to evolve, and being exposed to this space could position you to profit when the next wave of opportunities arises.
How to Profit from NFTs
Buy and Hold: Acquiring NFTs with long-term potential allows you to benefit when their utility or demand increases.
Flipping: For those closely monitoring the market, flipping NFTs can still offer short-term gains when timed right, though this approach requires careful research.
Passive Income: Some NFTs offer holders access to exclusive benefits, such as content, events, or royalties, which can provide ongoing income.
Though NFTs are currently facing a slower phase, staying informed and exposed to this evolving market could give you the edge when the next opportunity presents itself.
Portfolio Structuring: Building for Long-Term Success
A well-structured portfolio is key to navigating the ups and downs of the crypto market. Diversifying your crypto investments ensures that you’re positioned for long-term success, even during market volatility.
The 90-10 Method
One simple yet effective strategy is the 90-10 method, which applies to the crypto capital you’ve allocated (whether that’s 1-10% of your total investment portfolio):
90%: Invest 90% of your crypto portfolio in established coins like Bitcoin and Ethereum. These coins have a proven track record and are generally less volatile compared to smaller altcoins or NFTs.
10%: Use the remaining 10% of your crypto portfolio for higher-risk, higher-reward assets such as altcoins or NFTs. This approach gives you exposure to emerging opportunities while limiting the risk to a small portion of your overall crypto investments.
By structuring your crypto capital this way, you can protect the bulk of your investments with stable assets while still exploring high-growth potential in other sectors.
We’re Here to Make Crypto Investing Simple and Profitable
Since the beginning, our mission has been to make crypto investing simple, practical, and profitable. As you continue your journey, having the right guidance and support can make all the difference.
That’s why we invite you to join our free masterclass, where we’ll dive deeper into proven strategies for success and show you how to navigate the crypto market with confidence. Whether you're preparing for the next crypto bull market or looking to sharpen your strategies, this masterclass will equip you with the knowledge you need.
You’ll also connect with a trusted community of like-minded investors who’ve weathered the ups and downs of the crypto market together.
Sign up for our free masterclass today and start building your path to financial success in the world of cryptocurrency.