Capital allocation by increments:
Split the capital into 3 increments, each increment spaced about 20-25% apart. This helps you gradually buy at different price levels and stay close to the bottom. If the coin has increased too much, you shouldn't buy more to avoid risk.
Other capital allocation strategies:
In addition to incrementally allocating capital, there are other capital allocation strategies such as:
*Percentage-based allocation:** For example: 50% in Bitcoin, 30% in Ethereum, 20% in Altcoin. The advantage is it is easy to apply, helping maintain balance when the market fluctuates. The downside is that you may miss opportunities if a small coin rises sharply.
*Allocation based on investment time:** Allocate capital based on the intended holding period (long-term, medium-term, short-term). The benefit is optimizing profits from both short-term and long-term. The downside is that short-term investing requires a lot of market monitoring time.
*Risk-based allocation:** Divide the investment portfolio into risk groups (low, medium, high). The advantage is balancing profit and capital safety. The downside is that the level of risk can change over time.
*DCA Strategy (Dollar-Cost Averaging):** Gradually invest capital consistently over time (e.g., weekly, monthly). Helps reduce the risk of buying at high prices and eliminates emotional factors. The downside is that it may not optimize profit during strong uptrends.
Note: Each strategy has its own advantages and disadvantages. Choosing the right strategy depends on investment goals, risk tolerance, and the experience of each investor. No strategy is perfect; it needs to be flexibly adjusted according to market conditions. Refer to other information sources for a more comprehensive view.
