How to Set Crypto Investment Goals

Anyone who has spent a smidge of time in the investment world knows it’s critical to set goals. But it can be challenging to set investment goals for crypto, as the cryptocurrency world is always fluctuating.

To establish attainable crypto investment goals, we recommend thinking outside the box, focusing on growth over quantity, and considering passive sources of income. Read on to learn more about how to set crypto investment goals.

1. Think Outside the Box

When setting fiat investment goals, most people have a number in their head of what they would like their portfolio to be worth. Though you can do this with crypto, due to the instability and the way prices fluctuate, we challenge you to think outside the box and find something different to work toward.

For example, you could work toward a certain number of coins rather than the value of the coins themselves. Using this mentality, you would seek to own 2 BTC rather than a certain amount of dollars.

For those who are prone to riskier investments, such as ICOs and IPOs, a goal could be to cash out at a certain percentage over what you put in. For example, if you enter at the price point of $1 per token, you can aim to exit after you have netted 150% or when the token is valued at $1.50.

Remember, these are just examples of what you can do, and if you have any that have worked for you, keep at them. There is no one way to choose goals when you invest in crypto; just ensure you’re picking something you personally can work toward.

2. Focus on Growth Over Quantity

Though quantity is a possible goal to set for your crypto portfolio (as we just mentioned above), it can also be a very challenging goal to meet, especially in the case of BTC, which has thousand-dollar swings in price almost every day.

Individuals who don’t have as much capital will find it too challenging to focus on quantity, and we invite them to make their goals based on growth. An example of this would be aiming for 25% growth each quarter. Meaning if your portfolio is currently valued at $10k, you would check after 3 months with the hope to see $12.5K, and if you didn’t, you would rebalance.

We do have to mention that this isn’t an easy goal, as monitoring growth over quantity for an entire portfolio is more challenging than a single token, which is why it may be best to apply this goal to individual investments or on portfolios with only a few assets.

3. Consider Passive Sources of Income

We aren’t going to lie, investing in cryptocurrency is riskier and more challenging than fiat investments. Unlike stocks, which are monitored by government entities, many cryptocurrencies are not, and the space is filled with scams.

Personally, we think it is almost impossible to get ahead with the purchase of a single token these days—as Bitcoin costs too much to do so, and most ICOs never amount to anything. That being said, those who do get ahead do so using passive income.

Making passive income your goal for your crypto portfolio is actually quite easy thanks to Ethereum staking, yield farming, and a myriad of other options in the space. The thing with passive income is, once you set it up, it can typically remain hands-off, allowing you to focus your attention elsewhere. We think this is the true benefit of crypto, and a more viable goal than trying to get rich quickly.

In terms of connecting this goal with others on our list, you can aim to hold a certain number of tokens, such as 32 ETH (the minimum required for staking), and then convert your portfolio over to passive income. The same goes for yield farming.

We do want to mention that there can be scams in the yield farming space, just like anywhere else in crypto. As such, we recommend sticking with known sources such as the Ethereum staking options or the pools on Uniswap or Sushiswap. You can also look into games like Axie Infinity and others; just ensure you only consider established games.

4. Utilize Dollar Cost Averaging Goals

We say this a lot, but just as dollar cost averaging (or DCA) is a good goal for fiat, it works for crypto as well. DCA focuses on time in the market, rather than the impossible task of timing the market, and is an excellent choice for those with low capital. Basically, with DCA your goal is to put a certain amount of money in your portfolio each month, without worrying about the value of your assets on a close basis.

The only thing we recommend specifically for those using DCA goals on their portfolio is that you stick with well-known cryptocurrencies, as a lot of the newer projects are not stable enough for a DCA goal. We specifically recommend tokens like Bitcoin, Ethereum, and Monero.

5. Start Small

Above all else, we recommend that you start small. Even the famed cryptocurrency millionaires didn’t get rich with a single click. First, you need to start with research and an easy-to-reach goal—once you reach that, it will be easier to reach a slightly harder goal, and a slightly harder one after that.

This way, your goals can grow as your knowledge does, and you won’t give up and quit when you can meet that original impossible goal you set. Instead, you will receive an early boost of gratification as you slowly work toward the next. Remember, investing in crypto isn’t a sprint; it’s a marathon, and when you invest, you need to be in it for the long term in order to win big.

Overall, it can be challenging to set crypto investing goals, but as long as you think outside the box, focus on growth, and start small, we have the utmost belief that you can make your portfolio exactly what you want it to be.