How Much to Invest in Cryptocurrency in 2024
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Although cryptocurrencies remain the best-performing asset class since the creation of Bitcoin in 2009, this industry is still deemed high-risk. As such, while there are plenty of opportunities to be had when investing in the cryptocurrency markets, investors should be mindful of the amount of capital being allocated. The purpose of this guide is to ascertain the sweet spot when evaluating how much to invest in cryptocurrency.
How Much to Invest in Cryptocurrency – Key Factors to Help You Decide
Before diving into the fundamentals of how much to invest in cryptocurrency, consider the key takeaways highlighted below;
- Budget – The age-old saying of never invest more than you can afford to lose has never been more fitting in the cryptocurrency space. Crucially, investors should consider how much they can realistically afford to lose when assessing how much to invest in cryptocurrency.
- Risk Tolerance – Investors should evaluate how much risk they feel comfortable taking before investing in cryptocurrency. While gains can be significant, so can losses. After all, many cryptocurrencies are now trading more than 90% below their previous all-time high. For example, the best crypto ETFs allow traders to gain exposure to a wide range of cryptos within a single ETF.
- Disposable Income – Another smart way to assess how much to invest in cryptocurrency is to figure out the level of disposable income available at the end of each month. This will pave the way for a more risk-averse approach to cryptocurrency investing, through dollar-cost-averaging.
- Short-Term Needs – Although there is plenty of liquidity in the cryptocurrency markets, it remains to be seen if and when the next bull market will arrive. This means that investors should consider whether they have the capacity to wait many months or even years to see a return on their cryptocurrency investment.
- Focus on High-Quality, New Projects – Picking the best crypto to buy is also crucial when formulating an investment plan. In this regard, it could be worth focusing on new cryptocurrency projects that have sizable upside potential. New presale tokens such as Pepe Unchained have raised millions since launch.
Read on to evaluate our full and comprehensive discussion on the above points to ascertain how much to invest in cryptocurrency.
How to Decide How Much to Invest in Crypto
No two investors are the same – especially when it comes to long-term financial goals, risk tolerance, and budget. Therefore, when assessing how much to invest in cryptocurrency, be sure to read through the following sections which detail how to get into crypto in 2024.
Look for Low-Risk, High-Upside Crypto Projects
Irrespective of budget, smart investors will often look to focus on investments that carry a low-risk, high-upside prospect. This simply means that the crypto project enables the investor to target an attractive upside without needing to risk significant amounts of capital. At the forefront of this are cryptocurrencies that possess a small market capitalization. This is because when the valuation of a crypto project is low, it has a much greater chance of generating above-average gains.
For instance, some of the top-performing projects during the bull run that began in 2020 were low-cap cryptocurrencies. The likes of Shiba Inu, Decentraland, Axie Infinity, and many others went on to generate unprecedented gains of 100x and more. While the boat on the aforementioned projects has arguably been missed, finding the next cryptocurrency to explode doesn’t need to be overly challenging.
The key factor is knowing where to look. And in this regard, experienced investors will often target crypto presales and ICOs. The best upcoming ICOs enable investors to purchase a newly created token at the lowest price possible.
The idea is that early investors are rewarded for their belief in the project, not least because the token will eventually be listed on a crypto exchange at a higher price. And when this happens, investors are treated to an immediate upside. At this moment in time, there is one presals to keep an eye on – which could represent the best future cryptocurrency projects of 2024 and beyond.
Pepe Unchained – Ethereum-Based L2 Meme Coin, Over $19.4 million Raised on Presale
When investing in new crypto tokens, investors can look at new presale tokens such as Pepe Unchained ($PEPU). This Pepe-themed meme coin is built on the efficient and highly scalable Ethereum layer-two (L2) blockchain.
The L2 token offloads transactions from the main blockchain, leading to higher scalability and increased transaction speeds. Furthermore, the reduced operational costs allow Pepe Unchained to offer huge staking rewards to token holders.
$PEPU can be staked on smart contracts to earn a live APY (Annual percentage yield) of 113%. From the total 8 billion token supply, over 600 million tokens are staked on Pepe Unchained. Investors are flocking toward the Pepe Unchained presale – which has already raised more than $8.4 million in a few months.
20% of the token supply will be distributed through the presale. At the time of writing, $PEPU is priced at just $0.00998 per token. Another 30% of the supply will be allocated through staking rewards.
Stay tuned for more project updates by going through the Pepe Unchained whitepaper and joining the Telegram channel.
| Presale Started | June 2024 |
| Purchase Methods | ETH, USDT, BNB, Card |
| Chain | Ethereum |
| Min Investment | None |
| Max Investment | None |
Crypto All-Stars – Stake Multiple Meme Tokens, Earn 3x Staking APY
The next token to invest in 2024 is Crypto All-Stars ($STARS). This is a revolutionary crypto platform, that will allow investors to stake the most popular meme coins on one ecosystem.
On Crypto All-Stars, investors can stake Dogecoin, Shiba Inu, Pepe, Floki Inu, and other meme tokens. Thus, Crypto All-Stars could receive attention from millions of existing meme coin lovers. In return for staking their tokens, Crypto All-Stars will offer APY in the form of $STARS tokens.
$STARS, the native currency, can also be directly held in your wallets to earn up to a 3x increase in the overall APY being offered. Currently, $STARS is priced at $0.0015007 per token on presale. In only a week, the presale has raised more than $2.28 million.
$STARS can directly be staked on smart contracts to earn an annual yield of up to 652%. From a total supply of 42.069 billion tokens, 50% will be distributed through staking rewards. Another 20% is being distributed through the ongoing presale.
Learn more about this project by going through the Crypto All-Stars whitepaper and joining the Telegram channel.
| Presale Started | August 2024 |
| Purchase Methods | USDT, ETH, BNB, and card |
| Chain | Ethereum |
| Min Investment | None |
| Max Investment | None |
Flockerz – Decentralized Meme Coin With Staking and Voting Rewards
One of the best meme coins to invest in this year is undoubtedly Flockerz ($FLOCK). This exciting new meme coin presale aims to become fully decentralized, allowing $FLOCK token holders to vote in the governance and make key decisions like token burns, marketing strategies, releasing new features, and more.
Those who vote in the governance will earn $FLOCK rewards. 25% of the total token supply has been allocated for that purpose. However, this feature will come live once the presale ends. You can still earn $FLOCK tokens during the presale by staking them.
Similar to the voting rewards, staking rewards get a 25% allocation from the total token supply. Those who stake early can earn a generous APY of 2,551%. However, this is a dynamic APY that drops as more tokens are staked.
Early investors not only get a chance to quickly double their holdings with the staking rewards, but they’re buying $FLOCK at a discounted price of $0.0057699. Every few days, the token price will increase, making it prudent to buy early to lock in a better price.
Stay up to date by following Flockerz on X and by joining their Telegram channel.
| Presale Started | Sept 2024 |
| Purchase Methods | USDT, ETH, BNB, and card |
| Chain | Ethereum |
| Min Investment | None |
| Max Investment | None |
Memebet Token – Decentralized Casino for Meme Coin Degens Offering Exciting Airdrops
Another token to consider adding to your portfolio is the Memebet Token ($MEMEBET). It’s native to the upcoming Memebet Casino, a site that exclusively designed for gambling and meme coin enthusiasts.
Users can bet their favorite meme coins, such as $PEPE and $DOGE, to earn exciting rewards and benefits. The casino offers play-to-earn airdrops, special VIP benefits to its token holders, and access to both web-based and Telegram-based casino experiences.
The platform wants to capitalize on the growing meme coin and gambling markets to cater to a growing audience of degen traders and crypto enthusiasts. It wants to redefine the traditional gambling space by creating a casino with diverse casino games, a global sportsbook, and KYC-free gaming via Telegram.
$MEMEBET is at the heart of this ecosystem and enables users to earn Play-to-Earn airdrops by wagering in the casino. 20% of the total 2 billion token supply is set aside for airdrops and rewards to ensure that early adopters and high-stakes players are well-rewarded. Early buyers can grab $MEMEBET for just $0.0258 at the time of writing.
You can read the Memebet Token whitepaper to learn more about the project’s tokenomics. Buyers can also join the Memebet Token Telegram channel to get the latest updates.
| Presale Started | September 2024 |
| Purchase Methods | ETH, USDT, BNB, Card |
| Chain | Ethereum |
| Min Investment | None |
| Max Investment | None |
Sponge V2 – Popular Crypto With Over 191% Staking APY And Utility Within an Upcoming Play-to-Earn Game
Sponge V2 is a meme coin that follows the success of Sponge V1, a popular token that peaked at $100 million market cap in 2023, returning over 100x to early investors. Sponge V2 plans to outperform this by adding utility to the token in an upcoming play-to-earn game.
Those who already hold Sponge V1 tokens can stake them on the Sponge V2 website and earn passive yield. Those that don’t have the token can buy it on the Sponge V2 website by using an Ethereum wallet. You need ETH or USDT coins to complete the purchase.
Stake your $SPONGE tokens as early as possible to take advantage of the 191% APY as the number won’t stay that high for long.
According to the Sponge V2 whitepaper, there will be at least 40% APY for four years for those who stake $SPONGE tokens. The project roadmap is straightforward. There are three stages:
- The token staking is enabled.
- The token is listed on major exchanges and you can claim your tokens.
- The play-to-earn game is released.
https://youtu.be/EdhjKiXtM24?si=cqFk51ul68IprFbj Follow Sponge V2 on X and join Sponge V2 on Telegram to get project updates. Join Sponge V2 Discord if you want to engage with the community and the developers.
| Presale Started | Dec 2023 |
| Purchase Methods | ETH, USDT and Card |
| Chain | Ethereum |
| Min Investment | None |
| Max Investment | None |
ShibaShootout – Wild West-Themed Meme Coin, Get 783% Staking APY
ShibaShootout ($SHIBASHOOT) is inspired by the world of the Wild West. On this platform, users can get voting rights, earn passive income, and engage in rewarding storytelling modes.
Through the ‘token governance roundups’ mode, $SHIBASHOOT token holders get voting rights. They can have a say when deciding future platform proposals and protocol upgrades.
Through other modes such as ‘Campfire Stories,’ users can share their meme coin journeys in a storytelling format. The most engaging storytellers are rewarded with $SHIBASHOOT tokens. On the platform, $SHIBASHOOT can also be staked to earn an APY of 783%.
From the total supply of 2.2 billion tokens, 440 million will be allocated as staking rewards. Due to all these multiple use cases, ShibaShootout is a top new presale to invest in 2024. Within a few months, the ShibaShootout presale has raised over $1.20 million.
For more information, read the ShibaShootout whitepaper and join the Telegram channel.
| Presale Started | April 2024 |
| Purchase Methods | USDT, ETH, BNB, Card |
| Chain | Ethereum |
| Min Investment | None |
| Max Investment | None |
Evaluate the Investment Budget
It goes without saying that when deciding how much to invest in crypto, an assessment of the investor’s budget is a priority. This should be the case irrespective of the respective investor’s net worth.
A good starting point in this regard is to assess how much the investor can realistically afford to lose. This is because cryptocurrencies are high-risk assets and thus – the investor could lose some or even all of their money.
Consider the case of Terra Luna, which went from a multi-billion dollar project to a worthless cryptocurrency in the space of a few days. Crucially, investors should look at how much money they need as a safety net, in terms of day-to-day living expenses and the possibility of an emergency that requires access to fast cash.
Disposable Income for a DCA Strategy
Rather than attempting to time the market, a more suitable strategy could be to use a dollar-cost average for each investment. This means investing a predefined amount of money each month into the cryptocurrency markets – religiously.
To assess how much to invest in crypto via a dollar-cost averaging strategy, the investor should figure out what they can realistically put to one side each month. This means that instead of dipping into savings, the investor will only allocate funds that they have left over after each month passes.
Moreover, the investor will average out the cost price of each cryptocurrency purchase – which is a more risk-averse strategy in the long run.
Create a Diversified Portfolio
Another important factor to consider when evaluating how much to invest in cryptocurrency is the diversification of an investment portfolio. By spreading investments across different types of digital assets, investors can reduce the impact of a poor-performing coin or token.
Diversification also allows exposure to various sectors within the blockchain ecosystem, such as decentralized finance (DeFi), NFTs, and stablecoins, each of which may react differently to market conditions.
Even those on a budget can diversify their cryptocurrency portfolio. After all, cryptocurrencies can be split into much smaller units, so investors only need to allocate a few dollars to each purchase.
Time in the Market
The next factor to bear in mind when evaluating how much to invest in cryptocurrency is the length of time to spend in the market. Investors must consider how much time they are willing to HODL when assessing how much to invest in cryptocurrency.
Those happy to wait for many months or years should only invest money that they likely won’t need anytime soon. Crucially, the most successful investors in the cryptocurrency market are those that buy and hold in the long run. Panic sellers always lose out in the end, so investors should avoid allocating capital that they might need access to.
Liquidity
Another metric to consider when deciding how much money to invest in cryptocurrency is the availability of liquidity – namely, how easily a cryptocurrency can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, making transactions fast and stable, while low liquidity can lead to price swings and slow trades. Liquidity pools serve as lenders for crypto borrowers or a way for buyers and sellers to swap one crypto token for another.
Liquidity can become an issue when investing in smaller-cap projects. In fact, many projects in this space carry daily trading volumes of just a few thousand dollars. This means that it can be difficult to find a seller when it comes to cashing out. This is why it is wise to only allocate a small percentage of the portfolio to smaller-cap projects, and the balance to those that attract vast daily trading volumes.
Becoming More Active During the Bear Market
Many investors choose to stay away from the crypto markets while the industry is stuck in a bearish cycle. This is evident in the major reduction in trading volumes. On the flip side, experienced traders will argue that the overall best time to invest in cryptocurrency is in the midst of a bear market. After all, many cryptocurrencies would be trading 70-90% below their bull market highs, allowing investors to enter positions while prices are cheap, in anticipation of the next bull run.
How Much Should I Invest in Cryptocurrency? What the Experts Say
Considering that Bitcoin is now the largest crypto on the market, how much BTC should I buy? It is often beneficial to hear what so-called experts in the space believe is the right amount to invest in cryptocurrency. For example, Erik Finman – a young Bitcoin millionaire who by the age of 19 had already acquired over 400 BTC tokens, has previously explained that young investors should attempt to allocate 10% of their salary to leading cryptocurrencies.
This figure may, however, not be suitable for many – which is why assessing disposal income is perhaps a more risk-averse metric to take.
- Additionally, more traditional models argue that the 50-30-20 rule is likely to pay off over the course of time.
- This suggests utilizing 30% and 50% on day-to-day necessities and discretionary spending, respectively.
- While the 20% balance should be utilized for investment purposes.
- Of course, investing the entire 20% in cryptocurrency alone would mean being significantly over-exposed to market cycles.
- Instead, it is wise to also consider other asset classes, such as property, stocks, index funds, and bonds.
In other circles, even strong proponents of cryptocurrencies argue that investors should only invest money into the space that they are prepared to lose. The good news, however, is that even by allocating a tiny percentage of an investment portfolio to cryptocurrency, this can still yield unprecedented results in the long run.
How Much Crypto Should be in Your Portfolio?
The best crypto portfolio allocation depends largely on your risk tolerance, investment goals, and time horizon. Cryptocurrencies are volatile – they can offer high returns but also expose investors to significant losses. If you are highly risk-tolerant and have a long-term outlook, you might allocate a larger percentage of your portfolio—say 5-10%—to crypto. This could allow you to benefit from the high-growth potential while still mitigating risk across other, more stable asset classes.
For more conservative investors or those nearing a financial goal like retirement, limiting crypto exposure to 1-5% of the portfolio is recommended. This way, you can still take advantage of the potential upside without jeopardizing your overall financial security. Additionally, it’s wise to diversify within the crypto space itself, spreading your investment across multiple types of digital assets rather than betting on a single cryptocurrency.
Finally, crypto investments should be considered part of your broader investment strategy. It’s essential to balance them with more traditional assets such as stocks, bonds, and real estate, which can help reduce overall portfolio risk. Regularly reviewing and rebalancing your portfolio is key, as the fast-moving nature of crypto markets could cause your asset allocation to shift significantly over time. This way, you can be sure that your portfolio remains aligned with your risk profile and financial objectives.
Conclusion
In summary, assessing how much to invest in cryptocurrency will vary from one investor to the next. Factors such as the investor’s budget and disposal income, risk tolerance, and financial goals will need to be taken into account. Another metric to consider when evaluating an investment strategy is the risk-return ratio of the cryptocurrency.
New presale tokens such as Pepe Unchained are potentially attractive in this regard. This is a meme token that is built on the Ethereum L2 blockchain, and offers high staking rewards.
FAQs
Is investing in crypto worth it?
Cryptocurrencies, since the launch of Bitcoin in 2009, are by far the best-performing asset class. While the industry is overly volatile and speculative, broader trends remain positive. Investors should, however, avoid investing more than they can avoid losing.
How much should I invest in cryptocurrency?
Deciding how much to invest in cryptocurrency is dependent on the financial profile of the individual investor. While some cryptocurrencies are too high-risk, for many they have a place in a well-diversified portfolio. Investors can see how much disposable income they have to spare each month and subsequently deploy a dollar-cost averaging strategy.
Can you get rich investing in crypto?
Making considerable gains from cryptocurrency is often achieved by investing in a project early. While new investors have no doubt missed the kind of returns previously seen by Bitcoin and Ethereum, there a numerous presale campaigns to explore in 2024.
Is it worth investing $100 in crypto?
There is no set minimum amount to invest in cryptocurrency. On the contrary, investors should only consider risking an amount that they can afford to lose.
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Sergio Zammit