Investing in cryptocurrencies has become one of the most popular ways to increase profits in the modern world. Every day, new stories emerge about those who have managed to increase their wealth by investing in promising projects or using a successful strategy.

But at the same time, there are several challenges in the market. So how do you find that balance between risk and potential success? And what should beginners know before investing their money? In today’s article, we will look at the most common strategies, real-life success stories, and top tips for those planning to invest in digital assets.

Cryptocurrencies are increasingly attracting the attention of investors, and several key factors are contributing to this. In particular, the main reasons include:

• High potential returns: Digital assets offer the opportunity to generate significant returns, which attracts those seeking higher yields than traditional assets.

• Decentralization: Cryptocurrencies are based on blockchain technology, which provides transparency and decentralization. This approach resonates with investors who want to control their investments.

• Inflation hedge: Amidst uncertainty and growing fears of fiat currency depreciation, cryptocurrencies are an alternative means of preserving value that can protect assets from inflationary risks.

• Innovation and technology: Investors are interested not only in cryptocurrencies themselves, but also in the innovative opportunities offered by blockchain technology. It has the potential to change various industries, which attracts the attention of those looking for new technological opportunities.

• Portfolio diversification: Adding Bitcoin and other digital assets to a portfolio can reduce overall risk and create a more balanced investment approach.

There are several ways to invest in cryptocurrencies, and everyone chooses the most suitable method for themselves, depending on their risk appetite and available initial capital. Here are some of the most common ones:

1. HODL or ‘Hold On for Dear Life’ is one of the simplest strategies. Its essence lies in the purchase of cryptocurrencies for their long-term storage in anticipation of a significant increase in value. The main idea of the holding is ‘buy low and sell high’.

2. Trading. Active trading on cryptocurrency exchanges can be another method. It includes day trading, i.e. when assets are bought and sold within a single day, as well as swing trading, which involves small investments in response to short-term market fluctuations.

3. Initial Coin Offering (ICO). Investing in new cryptocurrencies or blockchain projects at the start-up stage can yield significant profits if they prove successful. However, caution should be exercised, as some new projects may not live up to expectations.

M22, an investor and founder of the eponymous channel , exclusively shared his investment experience:

‘Nowadays, any unknown project can buy ads on the Telegram channel and websites, create a white paper, a roadmap, proper tokenomics, and promise to release a product that no one has ever seen before. And if the community takes the bait, yet another project will emerge with no actual product, just a bunch of promises hanging over the community. My strategy is to look for projects with a transparent business model and the people behind them. When I invested in WhiteBIT , it wasn’t that popular yet. After watching a few interviews with Volodymyr Nosov, I realized that he’s someone with a vision, a goal, and the determination to move towards it steadily, no matter the obstacles. And so it happened. A few years later, WhiteBIT Group has more than 35 million customers. Everyone knows about the exchange, of course, but WhiteMarket — a marketplace for Counter-Strike skins — is a brilliant product. A mining farm, their blockchain… A valuation of $8 billion is just a trifle in my personal opinion.

About MEME. Ray Chan has been building his business, namely 9GAG, for 16 years. This shows that if he takes on something, he won’t give up halfway through. The preparation for creating Memeland was long and serious. Check out a few interviews with him, and you will understand what kind of person he is. I’m ready to trust my money to people like Volodymyr Nosov and Ray Chan.’

Among the most successful investment stories this year, the leader was the PEPE meme coin. On 15 March 2023, a trader bought 4.9 trillion PEPE, investing $3000 at the time, and held them until March 2024.

During this time, according to Lookonchain analysts, the token’s capital grew 15,718 times. Since the price of the coin reached an all-time high, the trader has gradually started selling his assets, earning $7.4 million.

The trader kept another 3.5 trillion meme coins, which were worth $38.9 million at the time. According to experts, the total profit of PEPE was $46.3 million. In May, the price of PEPE increased significantly, reaching a new ATH of $0.0000142 on 22 May, according to CoinGecko.

Against this backdrop, some investors and large companies made significant profits, as reported by Lookonchain analysts. For example, one of the traders transferred 201.85 billion PEPE ($2.83 million) to the Bybit exchange, where he traded the coin three times and earned a total of about $2.48 million from these transactions.

At the same time, crypto hedge fund BlockTower Capital transferred 202 billion PEPE ($2.8 million) to the OTC platform Cumberland for sale after the token price exceeded $0.000014. The tokens had been purchased just 6 days earlier for $2.22 million, generating $578,000 in profit with a 26% return on investment.

Another investor, one of the first buyers of memcoins, managed to get a 7,368-fold increase in investment. On 15 April 2023, he exchanged 0.22 ETH ($462) for 324.9 billion PEPE, after which he gradually sold the coins, earning a total of $3.4 million from the transactions.

In addition, in December, an unknown user managed to turn $27 million into $52 million by investing in memecoin. According to Lookonchain analysts, the user purchased 2.1 trillion PEPE more than 600 days ago for 0.0135 ETH and kept the coins on his balance sheet for a long time.

It was only on 14 December 2024 that he transferred all the tokens to a new address, where they were valued at more than $52 million. His deposit increased by 1.9 million times.

At the end of November, on social network X, a story was shared about a user who managed to turn small daily investments into real capital using the dollar cost averaging (DCA) strategy. For 8 years, he has been constantly allocating $30 a day to buy Bitcoins, which eventually brought him over $1 million.

A user with the nickname regothetrader told us how in 2016 he decided to systematically buy cryptocurrency regardless of its current rate. As he emphasizes, this step initially required tough compromises: working 16 hours at a low-paying job, sacrificing leisure time with friends, and severely limiting his budget.

Every day, the trader bought $15 worth of Bitcoins twice. In total, he invested $86,370 in the cryptocurrency. On 9 November, the investor shared his interim results: at that time, his portfolio was valued at $861,400. However, given that the Bitcoin exchange rate has risen by almost 30% since then, his assets exceed $1.1 million.

Another success story is related to a user’s investment in WhiteBIT Coin. An investor who bought the coin in the early stages of its launch shared his story on 20 November. He says that at some point he sold some of his assets when the price of WBT was $11.

But he still had 10,000 WBT on his balance sheet, which was equivalent to about $110,000 at the time. Over time, the price of the coin gradually increased, and in 2024, WBT showed impressive results — an increase of 327.22% according to CoinMarketCap. The trader decided to set a limit order and ended up selling 9800 WBT at $23.8 per coin, earning more than $233,000.

It is also worth mentioning the story of long-term investor Shiba Inu, who, according to Etherscan, earned more than $1 million on the memecoin. On 31 January 2021, he bought about 48 billion SHIB for 2 WHET (~$2700) on the decentralised exchange Uniswap. For 3 years, the investor held this asset and sold it on 28 May, when the price of SHIB rose to $0.000026. As a result, he received $1.24 million, which is 47.592% more than his initial investment.

Investing in cryptocurrencies requires a competent approach and a well-thought-out strategy. Below are some tips to help make your investment more successful and secure:

• Conduct thorough research. Before investing, it is important to study the project in detail: the underlying technology, the team behind the project, the presence of an active community, etc. This will help you avoid investing in questionable projects.

• Diversify your portfolio. Do not invest all your funds in a single asset. Spread your investments among several cryptocurrencies, including both popular and lesser-known but promising altcoins, to reduce risks.

• Keep up to date with news and events. The crypto market is changing very quickly, so you need to keep up with the latest news and technologies in this area.

• Choose safe platforms. Use only reliable exchanges and wallets to protect your investments from hacking or fraud. Reliability and security are the keys to success in the crypto sphere.

• Practice risk management. Do not invest more than you can afford to lose. Also, be sure to set stop-loss orders to limit potential losses.

• Focus on the long term. Trading can bring quick profits, but long-term investments usually allow you to better adapt to market volatility and provide a stable income.

• Beware of fraud. Make sure the project is legitimate to avoid falling victim to dubious schemes or phishing attacks.

Investing in cryptocurrencies can be both profitable and risky. Success depends on an understanding of the market, the right strategy, and the ability to make informed decisions.

As investor M22 aptly summed up: ‘It’s clear that investments come with risks. But I’d rather take the risk by believing in a person and their idea than simply buying into some memes or projects with an anonymous team that might announce ‘we’re closing down’ tomorrow without even leaving the office, only to launch a new project. And no one would know it’s the same people. Anonymity isn’t always a plus, especially for investors. I want to know who I’m entrusting my money to.’

Originally published at https://36crypto.com on January 17, 2025.