Learn Cryptocurrency
11 Mar 2022

Adulting Gets Real: Five Crypto Investing Rules Every Millennial Should Know

Ananda Banerjee

Hello Millennials, it’s time the world recognizes there’s more to you than “Netflix and Chill”. It’s time to prove yourself by building a diversified portfolio, enforcing financial discipline, and ensuring safe investing.

And knowing the rules of the crypto game will help you, and pretty much any investor, do this. But first, you have to learn all about the rules. So buckle up, and let’s begin to understand them.

Key Takeaways

  • Millennials planning to invest in crypto must first focus on learning all about key crypto concepts.
  • It makes a lot of sense to pick projects with problem-solving potential.
  • Recurring investment strategies work wonders for crypto-focused millennials.
  • As a millennial interested in crypto, it is better to shy away from dubious projects.

Five Crypto Investing Rules To Follow

Crypto investing rules vary according to the investor’s age—the rules for millennials aren’t the same as those for the younger Gen Z.

In comparison, millennials are cut from a different cloth. One with a lot of financial gravitas to it. Millennials are usually patient, consider the risks before proceeding, and are more inclined towards balancing the portfolio. Hence the different set of rules for them.

Here are some such rules meant for millennials to follow, based on their crypto investing sentiments.

Learn about Blockchain and Crypto

If you are a millennial looking to make it big in crypto, you must invest your time and effort in learning everything there is to know about blockchain technology and the larger world of cryptocurrencies. And not just the basics. From “How does a blockchain work?” to “What are crypto assets?”, a prospective investor must cover every base before investing.

Getting the basic concepts right should also be a part of your DYOR (Do-Your-Own-Research) strategy. Here are some key pointers to nudge you in the right direction:

  • Understand the real-world significance of blockchains.
  • Focus on looking at crypto as an asset and not just a currency.
  • Recognize the differences between disparate crypto assets based on tokenomics.
  • Get ahead by reading about blockchain-powered concepts like the metaverse, DeFi, and NFTs, and identify assets to incentivize the same.

Learning about blockchain and crypto with investing in mind also requires getting a hold of technical research skills. You can proceed in this regard by:

  • Learning more about crypto charts;
  • Understanding crypto technical analysis; and
  • Identifying key trading indicators.

learning crypto and blockchain

Source: Giphy

These pointers sum up pretty much everything there is to learn about cryptocurrencies and their blockchains. All we can say now is: Good luck!

Pick impactful projects

Now that’s the toughest rule of crypto investing. The project you choose often makes or breaks your portfolio. So how should you identify crypto assets with potential? Simply pick a real-world or an existing blockchain problem and find projects that fix it.

For instance, if Bitcoin’s carbon problem has you panic-stricken, you can take a look at some eco-friendly projects like Cardano (ADA) or Algorand (ALGO).

If you want to experience Web 3.0 before the new generation of the internet starts rolling out, take a glance at the metaverse, GameFi, and NFTs. Some relevant projects are Decentraland (MANA) and Axis Infinity (AXS).

In case you are worrying that picking a crypto project in this way is too much work, don’t fret. If you have already started following the first rule, the second will feel like a cakewalk. Still, if you would prefer to have some additional insights, here are a few:

  • Read relevant project whitepapers; they will help understand the vision.
  • Keep following project-related Twitter threads to stay abreast of the latest protocol developments.
  • Closely follow on-chain metrics like active wallet addresses, percentage of holders in profit, liquidity, and more.

Focus on Financial Discipline

If you have followed the first two rules, you should have a few projects on your radar by now. That means it’s time to think about how you invest in them.

Crypto investing rules

As a millennial, you might be inclined to save for your future—even retirement. Therefore, your investing strategy should keep sustainability and financial discipline in mind. That’s where something like the Rupee Cost Averaging (RCA) comes into play.

RCA is a reliable crypto investing technique that allows you to periodically set aside a small sum, regardless of how the market moves.

Some of its traits that make it a great choice for the millennials are:

  • It doesn’t require “Timing the Market”;
  • It is immune to market volatilities; and
  • It allows you to inculcate financial discipline by letting you set aside a small sum periodically.

Leading crypto platforms like CoinSwitch have launched a customized version of the RCA crypto investing strategy as Recurring Buy Plans (RBPs). These plans focus on driven and long-term crypto investors and are a great choice for millennials.

But don’t forget that financial discipline isn’t only about Rupee Cost Averaging. Your strategy should also focus on:

  • Ensuring financial safety;
  • Diversifying your portfolio;
  • Cutting through the social media noise; and
  • Understanding the whats and whys of investing.

Watch out for scams

Crypto scams are everywhere. (And we don’t mean exchange hacks or ecosystem-based attacks.) So you should keep an eye out for scammy projects—especially “Rug Pulls.”

A rug pull refers to a sketchy maneuver by some crypto project developers who aim to eventually run away with the investor funds. Fraudulent crypto projects that are more inclined towards pulling the rug from under investors’ feet need to be identified beforehand. But that’s not always possible, so in the end, it’s all about keeping the investments diversified yet safe.

Read this detailed post about Rug Pulls to learn how to steer clear of such crypto frauds.

Trading vs. HODLing: Choose Wisely

CNBC’s Millionaire Survey reveals that 39% of the 83% crypto-focused millionaire millennials plan to keep the current crypto investing levels intact. And close to 48% are even planning to add to their existing holdings. These reports suggest that there is no dialing back on crypto investments—which brings us to one key aspect of investing: HODLing. The term simply means holding on to your assets; it is essentially a safe investment strategy.

As important as HODLing is, trading is exciting. Remember the crypto market spike in November 2021, where the likes of Bitcoin and Ethereum gained over 30% in a short span of time due to active traders buying assets as if there was no tomorrow?

And there is no denying the fact that millennials have a thing for trading. But HOLDing is often wiser. If you still prefer trading over HODLing, these tenets are here to guide you:

  • Only invest what you can afford to lose.
  • Get the hang of crypto technical analysis.
  • Learn to gauge the market volatility and act accordingly.

As a millennial saving for the distant future, HODLing ideally should be the preferred strategy, though. If followed to the letter, HODLing comes with a host of benefits, including:

  • Immunity from the perils of the bear market;
  • A better stance against volatility;
  • No crypto taxes right away; and
  • Investment without too much stress.

Now that we have touched upon the aspects of trading and HODLing, it all comes down to your preferences, risk appetite, and the actual motivation behind investing in crypto in the first place.

Millennials Investing in Crypto: Do You Have an Advantage?

According to the CNBC Millionaire Survey conducted in 2021, 83% of existing millennial millionaires own crypto assets. And they aren’t planning to stop investing in them anytime soon. In fact, these millennials are planning to pump in even more money with the market correcting—also postulated by the CNBC survey.

Millennials in crypto have an advantage, period. They are at the perfect age to make the tough calls needed in crypto investing. And they have the emotional maturity to deal with the never-ending crypto volatility.

But having an edge doesn’t make you successful. Not every millennial you see is at the pink of their financial health. To get there, you need to follow a set of rules that are truly set in stone.

And that’s why we are here, helping prospective investors—both young and old—get a taste of crypto.

crypto calls

Source: Giphy


According to the website Capitalize, 54% of ambitious millennials are increasingly adding to their NFT- and crypto-focused portfolio as a retirement strategy. And that’s just a start. We expect many more to come into the crypto fold by the end of 2022.

Millennials, or for that matter any investor, shouldn’t invest in crypto just for the sake of it, or because everyone else is doing it. Instead, you should keep financial management at the forefront and learn everything you can before taking the plunge.

You can begin by keeping ever-reliable crypto assets like Bitcoin (BTC) and Ethereum (ETH) on your radar.

Hey ‘Millennial’, already interested in checking out some hot and happening crypto projects! Download the CoinSwitch app and get started immediately.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Ananda Banerjee

Content Writer

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