5 Crypto Strategies Even Beginners Can Use To Build Wealth
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Like many people who follow personal finance topics, you’re probably aware of cryptocurrency. But investing in crypto might seem like a game for younger, tech-savvy investors. How could a more traditional investor like you possibly build wealth using crypto?
Surprisingly, getting started in crypto isn’t as difficult as it might seem. While the complex terminology and buzzwords can be intimidating, cutting through that noise is exactly why cryptocurrency experts Aaron and Austin Arnold (yes, they’re twins) founded Altcoin Daily, a news channel dedicated to helping everyday people understand the ins and outs of cryptocurrency.
The Arnold brothers brought the same wit and savvy that helped make Altcoin Daily YouTube’s largest crypto news channel and community to the GOBankingRates Top 100 Money Experts series. They’ve got five key strategies that even beginners can use to build wealth — some of which may feel familiar to traditional investors.
1. Use Dollar-Cost Averaging
The brothers acknowledge that dollar-cost averaging is a concept that will resonate with investors who’ve been in the stock market for a while, even if they’re new to crypto.
“This is a tried-and-true investing strategy for one simple reason: because it works. Especially in crypto,” they said. “You’re never going to buy the exact bottoms, just like you’re never going to sell the exact tops.”
Instead of trying to predict the market — something even experts struggle with — the Arnolds suggest investing a fixed amount regularly, regardless of price. Remember the old investing adage, “It’s time in the market, not timing the market”? That applies to crypto, too.
“Over time, this averages out your costs and reduces the impact of volatility, turning crypto’s wild swings into opportunities for steady growth,” they said. “That’s how the vast majority of investors become wealthy. It’s like planting seeds consistently in a garden. Some days the soil is pricey. Other days it’s a bargain. But you’ll harvest more in the long run.”
2. Take the Emotion Out of Investing
Like any other form of investing, crypto rewards those who stay calm — or at least don’t panic-sell during dips or buy impulsively during market highs driven by fear of missing out (FOMO).
“To build wealth, set a clear strategy — or rules — upfront, like predefined entry and exit points based on research, and stick to them no matter how the market feels,” the Arnold brothers said. “Invest with discipline, not with emotion.”
In their own research, they’ve found that the best times to buy are when others are anxious. The best times to take profits? When market sentiment reaches a state of euphoria.
3. Understand Market Cap vs. Price
According to the Arnolds, new investors are often dazzled by a coin’s low price, believing it’s a steal compared to something like Bitcoin. But if something seems too good to be true, it probably is.
“A $1 coin with a billion in supply has the same market cap as a $1,000 coin with a million in supply. So, while the coins are different prices, the asset’s market sizes are the same value.”
Market capitalization, or market cap, is the total value of all coins in circulation. It’s calculated by multiplying the coin’s current price by the number of coins available. Market cap gives a clearer picture of a project’s true size and potential than price alone. While a cheaper coin might be tempting, the more expensive one could have more scarcity — and more potential for growth.
“By prioritizing market cap, you make smarter choices about a project’s true size and true upside, avoiding overhyped penny cryptos that rarely deliver sustainable wealth,” they said. “It feels good to own a lot of something. But a large bucket of pebbles is not more valuable than a small nugget of gold.”
4. Don’t Invest More Than You Can Afford to Lose
The Arnolds freely admit that the potential for massive gains in crypto comes with equally massive risks.
“Always understand the beast. The minute you’re overleveraged in a volatile market like crypto is the minute you start acting emotional instead of logical,” they said.
They recommend starting small — perhaps investing 1% to 5% of your portfolio in crypto — and only using disposable income. Rent, bills, and your emergency fund should never be at risk.
“This mindset not only protects your financial health but also lets you sleep at night, allowing you to hold through downturns and capitalize on recoveries without desperation clouding your judgment,” they said.
5. Invest in Yourself Every Day
You’ve heard the saying “knowledge is power.” The Arnolds say that’s especially true when it comes to building economic power and independence through crypto.
To illustrate, they pose a hypothetical: What if you could go back to the early days of the internet? You’d probably learn everything you could about the technology, connect with others passionate about it, and look for ways to capitalize on the future.
“Crypto, much like the early internet days, is in its very early stages,” they said. “While most coins won’t be relevant 10 years from now, the ones that remain will give life-changing returns. You will never regret investing in yourself and learning more every day.”
Bottom Line
Investing in crypto for the first time doesn’t have to be scary or intimidating. By applying some of the same principles that make traditional investors successful, you can build real wealth in crypto — one smart step at a time.
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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