Here are key strategies to use when you are investing into crypto.

They are just strategies, or principles. It is up to you and your risk appetite. This is what I do.

Portfolio Allocation

Similar to stocks, it is most important that you allocate to different coins and different types of crypto investment. Here are some low to high risks:

• Stablecoin yields
• Native staking (of good coins)
• Liquid staking (a derivative)
• Liquidity Pool
• Leverage

As for allocation of coins, it can be even more trickier. As a rule of thumb, have exposure to the top coins with real utilities.

Dollar Cost Averaging (DCA)

Do not buy it with all your available money at once. Buy them at interval of weeks or months.

If you have a lump sum, put them in stablecoins first, and earn the yield.

Then every week, you can withdraw them and invest.

Focus on a project

There are too many crypto projects, and different networks. Liquidity Pools are easily created (most are based on open source Uniswap!). But if you buy everywhere, it will be hard to farm. And you also need to pay for gas everytime you harvest.

So do focus to a handful. But not just a few, as you need to diversify.

Don’t fall for scams

If an influencer/celebrity is selling tokens and promised they will go to the moon, do NOT buy. Altcoins (aka shitcoins) are pure speculation and a ponzi scheme – the founder will pull out first and earn all the money, while the last will be left with nothing.

Dogecoin included. Joke gets old. Once they realized they could sell and earn a big profit, they will sell, and move on to new jokes.

There is always risk

The technology is new and changing quickly, so apps will have bugs. Smart contracts will have bugs. Tokens will be stolen. Higher the risk, higher the returns, and the lower you should invest.