The Crypto Plan Anyone Can Adopt & Utilize

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13 Sept 2024

The Dividing Line
There is a clear distinction within the world of Crypto. On the one hand, some arrive with the intention of immediate gratification and enrichment. Then some realize that Crypto holds the potential to create wealth, but also understand the concept of process. Understanding the process requires a rational, strategic, and long-term plan. This is always the missing element regarding those in search of immediate gratification.
Because Crypto is different from TradFi and other investment vehicles, one cannot measure progress in the same way. Euphoric periods within the Crypto space equate to decades of results within traditional finance and real estate. This allows for prolonged periods of what some would consider inactive, even bearish. The objective is to continue earning and generating yield, even dollar-cost averaging.
If you fall into the first camp of investors, you are more of a gambler than anything else and are unlikely to have what is required to dedicate yourself to a multi-year plan. That’s just the truth and is best realized at the onset. After all, who begins construction on a building before counting the cost? Anyone can enjoy a profitable Crypto journey, but not everyone will.
An Acceptable Timeline & Strategy
This is often a contentious subject. Investors want to realize immediate gains and it’s an unrealistic expectation, even for Crypto. So what’s an acceptable timeline to consider? Five to ten years is the period investors should be considering if they are looking to handsomely profit from their Crypto endeavor. After all, an entire cycle lasts four years, and that could be about to change.
As mentioned in numerous publications, returns decrease as an industry or asset class matures. This also needs to be factored into any investment plans and extrapolations of price. As of now, we are still experiencing the traditional 4-year cycle. It is being stretched but we are still within an acceptable timeframe regarding the current price action. Now, what strategies to apply during this time?
Firstly, every salaried individual should be looking at dollar-cost averaging every month. This should be 3% to 8% of your monthly income. This gives you skin in the game but simultaneously mitigates risk due to the allocation being minimal, relatively speaking. This can always be increased if your living expenses are low relative to your salary and you have a surplus in available capital.
This is best set up via a monthly debit or automated alternative. Secondly, add a few dApps to your phone such as INLEO and other SocialFi applications. Simply replicate your social media in WEB3 and accumulate tokens over time. Forget about the value, just keep posting, earning, and growing your network and influence. If you are into writing and blogging, begin creating on Hive and other WEB3 platforms. This adds up over time.
Another important element of a long-term portfolio is to ensure you are holding some Proof-of-Stake tokens. Choose some solid and established projects as well as some smaller up-and-coming projects. Parachains within the Polkadot ecosystem are a good option, as many offer high yields and are primed for growth in the coming years. These rewards should be compounded. Alternatively, they can be sold for more speculative investments.
Where possible, minimal capital should be deployed into promising micro-cap investments. Once again, where possible, Proof-of-Stake projects as they will multiply already significant gains even higher. In summary:

Monthly dollar-cost averaging strategy
Incorporate WEB3 SocialFi
Begin creating content if applicable
Invest in Proof-of-Stake protocols
Gain exposure to micro-caps

The only aspect of this Crypto plan that requires daily action is the SocialFi aspect. However, if you are posting to FB and X, simply adding a few more won’t require much of your time at all. Creating long-form content is a different story but the rewards are generally a lot more significant.

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Final Thoughts
Dedication and consistency regarding a solid plan over many years can be incredibly viable. This is where the rubber meets the road and produces a harvest in years to come. It’s quite simple, either this is you, or it’s not. Certain individuals are way too compulsive and unable to stick with a “boring” plan. Either way, this is the road that must be followed. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.