Investing in cryptocurrencies involves navigating high volatility, vast amounts of information, potential security threats, and fraud risks. Many investors turn to communities to exchange valuable insights and share experiences. We gathered perspectives from several influential Taiwan-based crypto community leaders to understand their medium to long-term investment strategies for 2021, their current portfolios, and their advice for newcomers.
Key Investment Strategies from Crypto Experts
Benson from "Crypto Rental Group"
Benson manages two communities: one focused on low-risk strategies like arbitrage, staking, and lending, and another dedicated to trading discussions. His portfolio includes Bitcoin (BTC), platform tokens like FTT, BNB, and OKB, and DeFi tokens such as YFI, UNI, Sushi, SNX, Aave, and SRM. He frequently uses FTX, Binance, and Pionex for trading, and Matrixport for wealth management.
Benson recommends paying attention to Layer 2 solutions and alternative blockchains like Avalanche and Solana in 2021. He believes that while ETH 2.0 is still in development, scalability solutions are urgently needed, making this a key area for growth.
Advice for Beginners:
- Invest only disposable income; avoid taking on excessive risk.
- Stay away from pyramid schemes and futures trading.
- Use CoinGecko to verify exchange and token credibility before investing.
- Start with lending and Bitcoin investments.
Ian from "EM3"
Ian’s community, EM3, brings together industry experts, founders, developers, and investors to identify early trends and opportunities. His holdings include BTC, ETH, LINK, DOT, FTT, HAKKA, CKB, and YFI. He prefers Binance for spot and futures trading and Pionex for grid trading and dollar-cost averaging.
For 2021, Ian is optimistic about ETH, DOT, SXP, HAKKA, and YFI. He notes that while DeFi has grown rapidly, underlying protocols and infrastructure need improvement. He also highlights the potential of Swipe (SXP) and Yearn (YFI) due to upcoming upgrades.
Advice for Beginners:
- Dollar-cost average into major cryptocurrencies.
- Focus on DeFi and Layer 2 solutions for altcoin investments.
- Be prepared for market corrections, which can exceed 80% after bull runs.
Jack from "Zombit Notes"
Jack’s community discusses cryptocurrency investments and industry trends. He emphasizes diversification to mitigate risks, holding BTC, ETH, DOT, BNB, and FTT. He uses tools like Pionex for grid trading and Binance for staking to generate passive income.
Jack’s 2021 recommendations include:
- Polkadot ecosystem: KSM, DOT
- Public chains: ETH, ATOM, DOT, NEAR
- DeFi: UNI, AAVE, RUNE, SNX
- Platform tokens: BNB, FTT
- Oracles: LINK, BAND
He anticipates that Polkadot’s parachain auctions, expected in mid-2021, will drive significant interest.
Advice for Beginners:
- Research thoroughly and avoid high-yield schemes that may be scams.
- Start with spot trading and avoid leverage products initially.
- Long-term holding (HODLing) often outperforms frequent trading.
Jack from "Jack’s Trading Classroom"
Jack is a full-time analyst whose community focuses on data-driven trading and risk management. He primarily holds Bitcoin and uses low-risk perpetual contracts on Bybit to grow his portfolio.
He expects BTC and ETH to perform well in 2021 and believes DeFi tokens could see gains due to community hype, despite limited practical applications.
Advice for Beginners:
- Prioritize risk management in all transactions.
Josh from "Josh’s Digital Knowledge Sharing"
Josh’s community educates beginners through easy-to-understand content and practical insights. He invests in Layer 2 solutions, DeFi leaders, and synthetic assets, noting that high Ethereum fees will drive demand for alternatives like BSC, Huobi Chain, and DOT.
His 2021 picks include DEX tokens (CAKE, UNI), synthetic assets (MIR), public chains (LUNA, DOT), and Layer 2 tokens (ZK, LRC).
Advice for Beginners:
- Start with BTC and ETH before exploring other tokens.
- Use dollar-cost averaging to enter the market gradually.
Justin from "Justin’s Trading Room"
Justin’s community focuses on indicator-based trading and Pionex tools. He prefers BTC and ETH for their stability and uses Pionex for grid trading and arbitrage.
He recommends the following grid trading parameters for 2021:
- BTC/USDT: Lower limit $10,000, upper limit $100,000, 150 grids
- ETH/USDT: Lower limit $500, upper limit $3,000, 150 grids
- ETH/BTC: Lower limit 0.015, upper limit 0.1, 150 grids
Advice for Beginners:
- Try Pionex’s arbitrage tools for stable returns regardless of market conditions.
Laura from "Grenade Hand Grenade"
Laura’s community highlights promising projects and development teams. Her portfolio includes 60% spot holdings, 20% contracts, and 20% arbitrage, with tokens like FTT, SRM, DOT, ETH, COMP, KSM, and UNI.
For 2021, she看好 BTC, ETH, DOT, FTT, COMP, AAVE, SNX, and DPI, emphasizing DeFi and scalability solutions like Polkadot and Layer 2.
Advice for Beginners:
- Understand the market before investing heavily.
- Diversify assets and avoid all-in strategies unless you can afford to lose everything.
oofoof from "Crypto/FinTech Discussion Group"
oofoof’s community includes whales, developers, and newcomers. He allocates 25% to SNX and 55% to stablecoins, focusing on stable yields through DeFi and arbitrage. He uses FTX, Binance, Crypto.com, and Matrixport for various strategies.
He recommends DeFi blue chips, ETH, privacy tokens like PRV, and IOTA.
Advice for Beginners:
- Learn stable yield strategies like lending and arbitrage.
- Experiment with Ethereum DeFi projects to gain hands-on experience.
Panda from "WalkinCat"
Panda’s community is known for its friendly atmosphere. He holds FTT, DOT, ETH, BNB, and BTC, using FTX and Pionex for trading. His 2021 picks include BTC, ETH, DOT, FTT, BNB, and DeFi tokens like SNX, AAVE, UNI, YFI, and HAKKA, as well as Layer 2 tokens such as MATIC, SKL, OMG, and CELR.
Advice for Beginners:
- Use low-risk strategies like dollar-cost averaging, lending, grid trading, and arbitrage.
- Explore Matrixport’s principal-protected products for fear-free investing.
Reno from "Reno’s Trading Notes"
Reno’s community provides trade ideas and market analysis. He holds over 30 tokens, including BTC, ETH, platform tokens, and DeFi leaders, using contracts on FTX for short-term gains.
He expects growth in Polkadot ecosystem tokens and NFT projects in 2021 and recommends platform tokens for overall market exposure.
Advice for Beginners:
- Follow institutional investment trends.
- Use dollar-cost averaging to enter the market and learn gradually.
Wilson from "Steaker"
Wilson shares DeFi news and strategies on social media. His company, Steaker, offers automated investment products for beginners. He uses CeFi platforms like FTX, Binance, and OKEx for arbitrage and DeFi platforms like Compound, Curve, and Uniswap for yield farming.
His long-term holdings include BTC, ETH, stablecoins, CREAM, YFI, UNI, SRM, FTT, and PHOON.
Advice for Beginners:
- Join crypto communities to learn and observe.
- Diversify investments and manage risk carefully.
Woody from "Cryptocurrency Investment Exchange"
Woody is a active community leader who uses Binance and FTX for spot trading and arbitrage. He holds BTC, ETH, and DeFi tokens and is optimistic about BTC, ETH, DOT, BNB, and FTT in 2021.
Advice for Beginners:
- Avoid over-investing and follow your own investment logic.
Frequently Asked Questions
What is the best way for beginners to start investing in cryptocurrencies?
Start with major cryptocurrencies like Bitcoin and Ethereum using dollar-cost averaging. This strategy reduces risk by spreading investments over time. Avoid high-risk products like leverage trading until you gain experience.
How can I generate passive income with cryptocurrencies?
Consider staking, lending, or grid trading. Platforms like Pionex and Matrixport offer user-friendly tools for these strategies. 👉 Explore passive income strategies
What are the key factors to consider when choosing a cryptocurrency exchange?
Check the exchange’s reputation, security measures, and trading volume on sites like CoinGecko. Avoid platforms with low rankings or limited information.
Is it safe to invest in DeFi projects?
While DeFi offers high returns, it also carries risks. Stick to well-known projects and always do your own research. Start with small investments to learn how DeFi works.
How can I protect my investments from market volatility?
Diversify your portfolio across different assets and use risk management tools like stop-loss orders. Avoid investing more than you can afford to lose.
What are Layer 2 solutions, and why are they important?
Layer 2 solutions scale blockchain networks by handling transactions off-chain. They reduce fees and congestion, making them crucial for Ethereum’s growth. Tokens like MATIC and SKL are part of this ecosystem.
Conclusion
Entering the cryptocurrency market requires careful planning and continuous learning. Focus on major tokens, diversify your portfolio, and use risk management strategies to navigate volatility. Stay informed through communities and reputable sources, and always prioritize security. With the right approach, cryptocurrency investment can be a rewarding journey. 👉 Learn advanced investment methods