Passively investing in cryptocurrencies can be a smart way to gain exposure without constantly monitoring the volatile crypto markets. For hands-off crypto investors, here are some of the best strategies to consider.
One simple option is dollar-cost averaging – investing a fixed amount at regular intervals, like $100 per week. This levels out risk over time and negates the need to time the market. Investors can dollar-cost average into a diversified basket of cryptocurrencies or blockchain ETFs offered by providers like Grayscale.
Staking coins through a crypto platform is another set-it-and-forget-it approach. Staking allows passive income generation from holdings like ETH, ADA or SOL while supporting network security. Crypto exchanges like oinbase">Coinbase make staking user-friendly for beginners.
For true passive investing, robo-advisors like Wealthfront now offer automated crypto allocation alongside traditional assets. Their Crypto Autopilot service builds and rebalances a diversified crypto portfolio using algorithms.
Finally, lending crypto assets can generate yield from idle holdings. CeFi platforms like BlockFi offer interest accounts to earn passive income on stored coins. Just beware of risks like platform collapse, as seen with Celsius.
Overall, dollar-cost averaging, staking, robo-advisors and lending can make crypto investing easy for hands-off investors. The key is sticking to disciplined approaches with diversification.
