Creating Your Investment Plan
Step 1: Define Your Goals
- Retirement funding
- Wealth building
- Income generation
- Specific purchase goals
Step 2: Assess Risk Tolerance
Consider:
- Time horizon
- Financial situation
- Emotional capacity for volatility
- Investment experience
Step 3: Choose Your Strategy
Passive: Buy and hold core positions Active: Regular trading and rebalancing Hybrid: Core holdings with tactical positions
Implementation
Asset Allocation
Based on risk profile:
- Conservative: 70% BTC/ETH, 30% stablecoins
- Moderate: 80% crypto, 20% stablecoins
- Aggressive: 90%+ crypto exposure
Entry Strategy
- Lump sum if confident
- DCA over 6-12 months
- Combination approach
Review Schedule
- Monthly: Check allocations
- Quarterly: Rebalance if needed
- Annually: Review strategy
Staying the Course
- Ignore short-term noise
- Trust your research
- Stick to your plan
- Adjust only for life changes
Conclusion
A well-defined investment plan provides the framework for achieving your cryptocurrency investment goals.
