Introduction:
Getting started with crypto can feel overwhelming. This article introduces five simple investment strategies that help reduce risk and build your confidence as a beginner.
1. Dollar-Cost Averaging (DCA)
Invest a fixed amount regularly (e.g., weekly or monthly) regardless of the price. This helps you avoid buying at peaks and averages your entry price over time.
2. HODLing (Long-Term Holding)
Buy and hold strong cryptocurrencies like Bitcoin and Ethereum over the long term. This strategy avoids emotional trading and benefits from long-term growth.
3. Diversification
Don’t put all your funds into one coin. Spread your investment across different assets — include blue-chip coins, DeFi tokens, and stablecoins to reduce overall risk.
4. Set Profit and Loss Limits
Plan your exit. Decide on your target profit and stop-loss levels in advance. This prevents you from making impulsive decisions based on emotions.
5. Observe Before You Act
Take your time. Study the market, learn basic technical indicators, and stay informed before making large investments.
