5 Crypto Investment Strategies For Beginners

“I just made $10K trading BTC.”
“My 2025 goal? A million dollars in crypto profits.”

You’ve seen posts like these on social media—traders flexing their wins, showing off massive gains. And you’re inspired. Who wouldn’t want a piece of that success?

But there’s a problem: you’re new to crypto, and the market feels overwhelming. Where do you start?

This guide has you covered. Here are five beginner-friendly crypto investment strategies to help you navigate the market and start making smart, profitable moves.

What Does It Mean To Invest In Crypto?

Cryptocurrency is a digital currency secured by blockchain technology, and they can be bought with physical money through centralised or decentralised exchanges.   

You can invest in cryptocurrency, by buying a crypto asset at a low price, and selling when the price goes up to make some profit.

5 Crypto Investment Strategies For Beginners

1. Apply Dollar-Cost Averaging (DCA):

Dollar-cost averaging is one of the most popular cryptocurrency investment strategies. It is the process of investing small and consistent amounts of money into crypto over a period, instead of investing all your capital at once. An example of applying dollar cost averaging is investing $10 into Bitcoin once a month over one year, rather than investing $120 all at once. 

The idea behind investing this way is to lock in more profit. If you buy Bitcoin at $50,000 market price, you can take some profit at $100,000 market price of Bitcoin, and still be able to buy again at $70,000 if the market gives you an opportunity. 

This way, you’d be able to secure more profits instead of investing your entire portfolio all at once.

This strategy has been tested and trusted and works well for crypto newbies and experts. 

The DCA strategy helps you reduce risk in investments, but you have to be consistent with it by continuing to invest the same amount, no matter how the market is. 

2. Buy and Hold (HODLing):

This is one of the most popular crypto investment strategies among beginners. It involves purchasing crypto from a cryptocurrency exchange platform, storing it in a crypto wallet for an extended period, and selling it when its value increases.

This is one of the best long-term investment strategies. 

3. Investing in High-Market-Cap Coins:

As a beginner, another effective way to profit from your cryptocurrency investment is to look for cryptocurrencies with high market capitalization, such as Bitcoin and Ethereum.

During a bull run, the tendency of these kinds of crypto assets making giant moves that will ensure your profitability is high.

4. Copy Trading:

Copy trading is another investment strategy that can help you gain an edge in profitability easily in the crypto market. It is all about following the analysis of successful traders and simplifying copying their trades to make profit as they do.

A number of crypto exchanges Bitget, OKX, and a host of others offer this feature, and you can check it out.

5. Crypto Arbitrage Trading:

Crypto arbitrage trading involves purchasing a cryptocurrency from a crypto trading platform and selling it at a higher price on another trading platform to capitalize on the profit.

Different exchanges offer different rates and prices for buying and selling crypto, so a crypto trader can capitalise on this by purchasing crypto from an exchange, deciding to hold on to it for a while, or selling immediately on another platform for a higher price. 

For example, there are two exchanges- Exchange A and Exchange B.

Let’s say the price of Bitcoin on Exchange A is $20,000, and the price on Exchange B is $20,300. If you purchase from the first exchange and sell on the second, you make a profit of $300.

Bonus Tip: Managing Risk

Do not be alarmed; investing in crypto does not mean you will surely lose all your money, so you should invest with the mindset of pouring your money into a bottomless pit. What I mean by this is that you should only invest what you can afford. Some people habitually put their entire life savings or money meant for something important into investments, which is wrong.

Like any investment type, cryptocurrency has risks, and because of its volatile nature, the market goes up and falls. These market dips lead to a loss of funds. 

According to Yuan Ruan, CEO and Founder of Parallel Finance,  “A person new to crypto should consider around 5% of their income to the crypto market, a crypto enthusiast should look for around 10% of their income allocated to crypto, and a DeFi expert or trader should probably consider 20% or more to crypto“.

How To Choose Which Cryptocurrency To Invest In

There are over 12,000 cryptocurrencies in existence, and it might be tricky to decide which one to invest in first. While it is essential to diversify your portfolio and not invest in only one crypto asset, how do you decide which ones to invest in?

Before investing in any crypto asset, here are a few things you should do

1. You need to research your options, their history, predictions, risks, and more. 
2. Consider the market capitalisation of the crypto asset. It can give insight into its stability and global adoption. 
3. Check market reviews about crypto assets.
4. Go for crypto assets that have real-world utility. Coins that have real-world utility often do well in the long run.

Frequently Asked Questions (FAQs) About Crypto Investment Strategies for Beginners

What is HODLing in crypto investing?

HODling is a crypto term that entails buying a coin and keeping it for a long time in hopes of high returns.

Why is dollar-cost averaging (DCA) a good strategy for beginners?

Dollar-cost averaging is a good strategy for beginners because it shields them from crazy market volatility while helping them capitalise on market dumps to increase their crypto holdings.

What is staking, and how can beginners earn from it?

Staking entails locking up your crypto asset in a liquidity pool for some time in exchange for rewards. This can be likened to getting interest on money in a fixed deposit in a bank. It is available for you as a beginner to earn from and benefit.

How much should a beginner invest in crypto?

Beginners can invest as much as their capacities can carry. However, beginners must also understand the inherent volatility of the crypto market, and so should only invest what they have the capacity to lose.

Is cryptocurrency a safe investment?

Yes, it is. However, you must understand that the crypto market is highly volatile. So, you must do thorough research to identify the best crypto asset to invest in and use safe wallets and reputable platforms to ensure the safety of your investments.