Budget-based investing tips: Make your budget work for you

We’re officially in the last accumulation window before this bull market starts to soar!

If you’re a new investor, or you know someone who’s thinking about it, this is the perfect time to consider getting into this asset class.

One of my favourite things about crypto is that you don’t need to break the bank to be involved. You can start with any size budget and still get great results. Starting small is much better than sitting on the sidelines and watching the opportunities pass you by.

In other words, having some skin in the game is better than none!

Here are my top tips for maximising your investment potential (no matter what your investment budget):

Smaller Budget $1-3k: Building the Foundation
A smaller budget could be anything from around $1,000 to $3,000 or a little more. If this is you, I’d suggest looking to hold 3-4 coins, rather than spreading the investment over too many and diluting any profits. It’s a smarter play to invest slightly more on slightly less, rather than spreading the funds too thin.

For this size budget, I’d recommend deploying capital in several stages. Do it sooner rather than later, so you’re ready when the bull market takes off.

When you’re looking at which cryptos to invest in, you’ll want to include one or two newer, more speculative projects to give your investment the chance to turn into something potentially with higher return. Your money will go further on newer coins than if you were to invest it all in something like Bitcoin, which is economically heavy.

Medium Budget $10k plus: Expanding Your Horizons
With a bit more to invest, you can start exploring both higher and lower risk options.

Top-tier coins like Bitcoin or Ethereum could make sense here, combined with some mid-cap and low-cap projects with higher growth potential. This will give you a nice, diversified mix to play with. You can also afford to Dollar Cost Average (DCA) over the next few weeks or months, rather than investing it all at once.

Large Budget $100k plus: Going Big and Bold
If you have a substantial budget, DCA would be a great option, but again, I’d recommend deploying over the next few months so you’re prepped and ready for any potential upcoming rallys. You don’t want to start DCAing next year once prices are much higher.

When you have a larger portfolio, you can hold more coins. Many DWG students with a portfolio of this size hold 10-15 cryptocurrencies. These are generally spread across low-risk and high-risk projects, in a variety of sectors, including growth sectors like AI, DeFi, Gaming, Real World Asset tokenization, etc.

The other thing to remember with a budget of this size is that fees make a difference, so find an exchange with lower fees if you can. For example, Kraken will save you a lot of money in transaction fees when compared to Coinspot.

No matter what size your budget, remember that every step you take in crypto is a step towards potential financial freedom.