3 ways to invest in cryptocurrency that will allow you to sleep at night


Investment in cryptocurrency is a crazy walk. If you had bought a Bitcoin (BTC 0.86%)) On November 10, 2021, this would have cost you about $ 67,000. As of July 8, 2025, your investment was worth $ 109,000 for an impressive yield of 62% – if You have maintained a boost while the price dropped as low as $ 16,000 in 2022.

It is difficult to stay calm with this kind of volatility. No one likes to see their investments drop in value, but it is the level of the course with Crypto. If you have decided to invest in digital assets, there are several ways to make experience less stressful.

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1. Limit the crypto to a small part of your wallet

The best way to invest in the crypto without worry is to limit the amount of money you invest in it. You may want to start by reserving 1% or 2% of your investment portfolio for cryptocurrency. If you feel comfortable going higher later, you could drop up to 3%, 5%or up to 10%. Personally, I did not allocate more than 10% of my crypto portfolio due to the risk involved.

A reasonable asset allocation makes these price fluctuations that are much easier to manage. If you have a portfolio of $ 100,000, and $ 3,000 is in crypto, a 50% dive in your cryptography assets is not a huge problem. If you have $ 50,000 in crypto, that’s another story.

Since cryptocurrencies have the potential to quickly increase value, you can always get excellent yields in this way. Remember that if your cryptographic investments take off, you may need to rebalance your wallet so that it does not become too cryptocurrency.

2. Invest in the largest parts

I have invested in a lot of cryptocurrencies, large and small, over the years. If I could go back and change one thing, I would have avoided the smallest altcoins and invested more of my money in Bitcoin (ideally in 2010 or 2011, given the option).

It is tempting to skip the big names and invest in parts that have not yet been practiced. Everyone wants to find a cryptocurrency that will explode, provide growth 1,000 times and transform the first investors into multimillionaries.

The problem is that the cryptography market has a massive number of scams, memes parts and low quality projects. You are much more likely to lose most or all of your money when you invest in smaller and unproven parts. Out of nearly 7 million cryptocurrencies listed on the Geckoterminal follow-up tool since 2021, 3.7 million have ceased to negotiate. This is a failure rate of 52.7%, and it does not include cryptocurrencies which always translate but which have lost most of their value.

To improve your chances of success, stay with large cryptocurrencies that have existed for several years or more. Bitcoin, Ethereum,, XrpAnd Solara All correspond to this description. They are still volatile, but they turned out to be serious projects and have survived the bear markets.

3. Do not microbestion your cryptographic stakes

Spend too much time monitoring your investments can be stressful. This is true with any type of asset, the actions included, but it is worse with the cryptocurrency due to the amount of price that can fluctuate.

There is nothing wrong with staying up to date with the cryptocurrencies you have and the market as a whole. But try not to pay too much attention to daily price movements. I hope you have chosen cryptocurrencies which, in your opinion, have a long-term value. If this is the case, you could end up holding them for five to 10 years or more – more than enough time to get out of the occasional decline.

If you implement these three strategies, you can invest in the crypto without any harm to sleep at night. Limiting the amount of money you invest in the crypto is a simple and effective way to cap your drawback. When you invest in proven parts, your wallet is unlikely to be destroyed on a lower market. And if you avoid checking the price graphics every day, you will save yourself a lot of unnecessary stress.

Lyle Daly has positions in Bitcoin, Ethereum and Solana. The Motley Fool has positions and recommends Bitcoin, Ethereum, Solana and XRP. The Motley Fool has a policy of disclosure.

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