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News

Trader Sketches 'Somewhat Safe' Bitcoin, Ethereum, Dogecoin Investment Ideas For 4 To 7 Figure Portfolios

Author: Khyathi Dalal | June 05, 2024 11:34am

Crypto analyst Altcoin Sherpa shared strategies for trading and investing in various portfolio sizes, offering tailored advice for crypto enthusiasts with different financial backgrounds.

What Happened: Sherpa's tweet breaks down investment strategies into different tiers based on the amount of capital one is working with. He provides options ranging from relatively safe bets to high-risk, high-reward scenarios. However, investors who want to check their portfolio only once in three months should buy Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

  • For Seven Figures or More

The trader suggests sticking to major cryptocurrencies like Ethereum and Dogecoin (CRYPTO: DOGE), "ETH to ATH, DOGE to $0.40+". These established assets are considered safer bets given their stability and potential for growth.

  • For Six Figures

Investors with six-figure portfolios are advised to look at trending meme coins. "Can go with Pepe (CRYPTO: PEPE) or one of the Solana memes like Dogwifhat (CRYPTO: WIF)/Bonk (CRYPTO: BONK)," he noted. These meme coins have seen significant volatility, offering the potential for strong returns

  • For Five Figures

Sherpa advocates for a more risk-on approach for those with five-figure investments. He suggests looking into less mainstream projects. "Probably avoid all of the above and get to work and go riskier for generational wealth," he stated, pointing to options like PURR with Hyperliquid, BTC ecosystem ventures, and unusual ecosystems like Mode.

  • For Four Figures

Investors with four-figure portfolios are cautioned against meme coins due to their high risk. Instead, they are encouraged to pursue strategies like those suggested for five-figure portfolios but with an even greater emphasis on risk.

Benzinga Future of Digital Assets conference

Also Read: This Trader Sees A ‘Barbell Portfolio Of BTC And Memes’ As Most Profitable Trading Strategy

Why It Matters: Sherpa noted that his suggestions are "going farther and farther down the risk curve" with the lesser investment that a trader can undertake. While he acknowledges the experience of seasoned traders, "With that said if you’ve gotten to six figures+ in crypto, you’ve probably already taken a lot of these risks before and are a veteran."

He highlights that as the portfolio size decreases, the need for taking on more risk grows, but so does the chance of significant losses.

Meanwhile, his recommendation to buy BTC, and ETH reinforces the stability and growth potential of these foundational assets in any crypto portfolio.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Top Crypto Trader Dumps Entire Bitcoin Portfolio To Buy Altcoins, But Should You Be Taking This ‘Huge’ Risk

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock

Posted In: $BONK $BTC $DOGE $ETH $PEPE