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A notable pundit in the crypto industry outlines his approach for investing $1,000 in crypto assets, suggesting strategies to allocate 10% across multiple sectors.
The crypto market is amid a fresh bull cycle where modest sums potentially transform into multi-million-dollar fortunes. Bitcoin has already set the stage by breaking its 2021 peak and is currently on a path to price discovery.
With Bitcoin on the verge of recording more gains, the broader crypto market could follow. However, many retail investors struggle to identify which crypto assets offer the most promising returns in the bullish season.
To address this dilemma, the host at the renowned Altcoin Daily show has outlined his strategy for investing $1,000 in crypto assets this year. The pundit notably emphasized that investing at this juncture is not akin to arriving late to the party, as numerous crypto assets still linger below their previous all-time highs.
Altcoin Daily’s Strategy to Investing $1,000 in Crypto Today
The Altcoin Daily host disclosed that if he allocates $1,000 into the crypto market today, his first $500 or 50% of the funds would go towards Bitcoin. His decision to invest in Bitcoin is rooted in the new involvement of institutions in the BTC market, particularly via spot exchange-traded funds.
Significantly, the United States authorized the inaugural ETFs directly investing in Bitcoin in January, contributing partly to BTC’s surge to its new all-time high of $73,750 in March. Additionally, jurisdictions such as Hong Kong have followed suit, approving spot ETFs for Bitcoin and Ethereum.
With Bitcoin’s fixed supply cap set at 21 million units and ETF issuers collectively holding approximately 1 million BTC, the Altcoin Daily host is confident that investing in Bitcoin is a prudent choice.
Next 20% Goes to L1 and Infrastructure Crypto Assets
Furthermore, the host noted that 20% of his subsequent capital allocation would be allocated to layer-one (L1) blockchain and infrastructure projects. Here, he specifically mentioned Ethereum (ETH) and Solana (SOL).
This decision draws from Brian Kelly’s recommendation. Kelly, the founder of digital currency investment firm BKCM, asserts that ETH and SOL are compelling investments due to their pivotal roles in shaping the future of finance.
In particular, Kelly noted that Ethereum and Solana are poised to underpin the development of new financial systems, particularly DeFi.
Furthermore, the Altcoin Daily host expressed a strong inclination towards L1 blockchains in general, emphasizing their fundamental significance irrespective of which aspect of crypto ultimately prevails.
He pointed out that, unlike the internet boom of 1999, when investors could not invest in the base protocols, L1s offer a unique opportunity to invest in the underlying infrastructure. He believes that regardless of which NFTs, gaming coins, or DEXs succeed, the value will ultimately accumulate on L1 blockchains.
As a result, out of his 20% allocation for layer-one and infrastructure crypto projects, 5% each would be allocated to Ethereum and Solana. Additionally, 5% would go into infrastructure crypto projects like Chainlink (LINK).
For the remaining half of the 20% allocation, the host identifies worthy choices in Cardano (ADA), Toncoin, Near Protocol, and Cosmos (ATOM).
Next 30% Goes to AI, Gaming, Memes and RWA
With 30% of the $1,000 allocation remaining, the market commentator divulged that 10% would be directed towards AI-based crypto projects, reflecting the growing prominence of artificial intelligence.
Noteworthy investments in this sector include Bittensor (TAO) and Render (RNDR). In the gaming sector, 10% would be allocated. His favored choice includes Immutable (IMX) due to its infrastructure offerings tailored to the sector.
The final 10% allocation is designated for meme coins and tokens associated with real-world asset tokenization, with each receiving a 5% allocation.