How Much To Invest In Crypto Monthly? [A Quick Complete Guide]

TL;DR: Invest 1-5% of monthly income in crypto using Dollar-Cost Averaging. Start with as little as $10-$ 50 per month, focusing on Bitcoin and Ethereum. Automate purchases and diversify gradually.

So you've decided to get into crypto. Smart move. But now comes the million-dollar question (or maybe the hundred-dollar question if you're just starting out): how much should you actually invest in crypto per month?

That’s exactly what we are going to answer in this guide. We're going to cut through the noise and provide you with a practical, actionable framework for investing in crypto on a monthly basis.

What You'll Learn in This Guide

• How much of your income to allocate to crypto monthly – Specific percentages and dollar amounts based on your income level

• Why Dollar-Cost Averaging beats market timing – Data-backed evidence showing why consistent investing works

• Step-by-step setup for automated investing – Practical instructions for setting up recurring purchases

• When and how to take profits – Exit strategies that protect your gains and minimize losses

Why Monthly Investing Matters

Monthly investing isn't just a smart tactic—it's the safety net and growth engine your crypto journey needs. It balances risk, encourages discipline, and builds a long-term portfolio you can count on. Here are some of the reasons why you should invest in crypto monthly.

The Power of Consistency in Investing

Let’s be real—no one has a crystal ball to time the market perfectly. That’s why monthly investing, or what pros call Dollar-Cost Averaging (DCA), is one of the most reliable methods in the crypto world. It’s simple: invest a fixed amount on a regular basis, regardless of the market’s ups and downs. Over time, this strategy reduces the risk of investing a large sum at the wrong moment and averages out your purchase price.

By investing monthly, you essentially remove the guesswork and stick to a plan that benefits from both bull and bear markets. You buy more coins when prices are low and fewer when prices are high - effectively reducing risk and maximizing returns over time.

Avoiding Market Timing Mistakes

Trying to catch the bottom or sell at the top? Even professionals mess that up. The crypto market moves fast - often within minutes or hours. One tweet from Elon Musk or a new SEC ruling can flip the charts upside down. Investing monthly protects you from the psychological rollercoaster and emotional decisions that often lead to losses.

Reducing Emotional Trading Decisions

Fear of Missing Out (FOMO), panic selling during dips, or regretting missed entries - these are common emotions in crypto. But if you follow a fixed monthly investment strategy, you’re no longer chasing green candles or reacting to red ones. Your job is simple: stick to your plan, invest your set amount, and let the strategy do the work.

Understanding the Nature of Crypto

Cryptocurrency is volatile by nature - but that volatility is exactly what creates the opportunity. Let’s break down what that means:

1. Bitcoin Price History:

• 2009: Worth nearly $0

• 2013: Surged to $1,000

• 2017: Climbed to ~$20,000

• 2021: Exploded past $60,000

• 2022: Fell under $20,000

• 2024–2025: Fluctuating between $30,000–$70,000

2. Crypto Market Volatility

Bitcoin can move 10–20% in a single day. Ethereum, altcoins, and meme tokens? Even crazier swings. For example:

• In one week in 2021, Bitcoin dropped 30%

• Ethereum lost 94% of its value in the 2018 bear market—and later gained over 1000%

This makes crypto exciting, but dangerous for emotional or impulsive investors.

Success Rates of Early Investors

Had you started investing $100/month in Bitcoin in 2013, you'd have over $1M by 2025. Even if you began in 2017, you'd still be deep in profit. Long-term, consistent investing - especially in top projects - has overwhelmingly outperformed those trying to time the market.

Investment Strategies That Work

Dollar-Cost Averaging (DCA)

With DCA, you're buying a fixed dollar amount of crypto regularly, regardless of its price. For example, investing $200 on the 1st of every month. A Dollar Cost Averaging strategy removes emotion, reduces risk, and lets you take advantage of dips.

Diversifying Your Crypto Portfolio

Avoid betting everything on one coin. Diversification spreads risk and opens you to more opportunities. You might split your investments between Bitcoin, Ethereum, and a few other blue-chip cryptocurrencies..

Balancing Between Bitcoin, Ethereum, and Altcoins

• Bitcoin (BTC): Considered digital gold; great for long-term holding.

• Ethereum (ETH): Powers decentralized applications and smart contracts.

• Altcoins: Include projects like Solana (SOL), Avalanche (AVAX), and Chainlink (LINK). These are riskier but can have higher returns.

Stablecoins for Safety Nets

Stablecoins like USDT and USDC are are pegged to the dollar. Use them to lock in profits, park funds temporarily, or reduce exposure during high volatility.

Investing in Popular Coins: What’s Hot and What’s Hype?

Stick to coins with strong fundamentals, high liquidity, and real-world use cases. Be cautious of meme coins unless you're allocating "fun money" - money you’re okay losing.

How Much to Invest In Crypto?

Rule of Thumb: 1–5% of Your Income

Start small. If you make $3,000/month, then $30 to $150 is a reasonable starting point. This keeps risk low while allowing you to benefit from long-term growth.

Customizing Based on Risk Tolerance

• Low Risk: 1–2%, stick to BTC and ETH

• Medium Risk: 3–4%, add a couple of reliable altcoins

• High Risk: 5%, explore newer projects with potential

Investment Techniques for Beginners

#1 Start Small and Scale With Confidence

If you’re new to crypto, there’s no need to go all in right away. The best way to start is by dipping your toes in the water. You ease in, build your confidence, and develop consistency.

Even $10 to $50 per month is enough to start building your portfolio and learning how the crypto space works. The key isn’t how much you invest at first, but how consistent and disciplined you are.

Starting small also limits your risk. You’ll make mistakes - it’s part of the learning curve - but losing $20 is a lot easier to stomach than losing $2,000. Once you're more comfortable with market movements, exchanges, and wallets, you can gradually scale up your investment.

#2 Choosing the Right Exchange

Choosing a crypto exchange is like choosing a bank - you need security, accessibility, and low fees. Here are some of the most trusted names in the game:

• Coinbase: Great for beginners, very user-friendly, strong reputation, but slightly higher fees.

• Binance: Offers a wide range of coins and trading options. Lower fees, but can be overwhelming for first-timers.

• Kraken: Highly secure and transparent, with good fiat on-ramps and educational resources.

What to look for in an exchange:

• Low trading and withdrawal fees

• A clean, intuitive interface

• Good customer support

• Security features like 2FA and cold storage

• Regulatory compliance in your region

Pro Tip: Start with one platform to learn, but eventually consider spreading across two or more exchanges for flexibility and risk reduction.

Not sure about which exchange to start with? Check out our Coinbase vs. Binance Comparison Guide.

#3 Wallets and Security Basics

Crypto ownership comes with great power—and responsibility. Unlike traditional banks, there’s no customer service if you lose access to your funds. That’s why understanding wallets is crucial.

Crypto wallets are of two types —

1. Hardware wallets (cold):

   1. Completely offline, making them highly secure

   2. Ideal for large, long-term holdings

   3. Example: Ledger Nano X, Trezor

How to send money from Ledger to Trezor

2. Software wallets (hot):

   1. More vulnerable to hacks, so enable 2FA and strong passwords

   2. Convenient and quick access for everyday use

   3. Example: Exodus, Trust Wallet, MetaMask

Security Best Practices:

• Never share your seed phrase (recovery key) with anyone

• Enable two-factor authentication (2FA)

• Use a strong, unique password

• Avoid storing large amounts of crypto on exchanges

Think of it this way: Your wallet is your vault. Guard it like your financial life depends on it - because it does. Read More: What is a lightning wallet?

#4 Setting Clear Goals for Your Crypto Journey

Before you invest a single dollar, ask yourself: Why are you investing in crypto? Your goal will define your strategy, risk tolerance, and how long you hold your assets. 

Some common goals include:

• Long-term wealth creation → Focus on solid coins like BTC and ETH

• Early retirement → Diversify with altcoins and DeFi, but manage risk

• Financial freedom or passive income → Look into staking, yield farming, or crypto savings accounts

Write down your goal and use it as a compass. When markets dip or skyrocket, your goal keeps you grounded and helps you avoid emotional decisions.

Portfolio Rebalancing: Why and How Often?

Markets change. One coin might soar while another underperforms. That’s why portfolio rebalancing is essential.

What is it?

Rebalancing is the process of adjusting your portfolio back to your target allocations. If Bitcoin grows to make up 80% of your holdings (when your goal was 50%), you sell some and redistribute to keep your strategy intact.

How often should you rebalance?

• Every 3 to 6 months is a good rule of thumb

• More frequent rebalancing = more fees and taxes

• Less frequent = more risk drift

Why rebalance?

• Maintain your desired risk level

• Lock in gains from outperforming assets

• Avoid being overexposed to one coin or sector

Tax Implications: Stay Legal, Stay Smart

Yes, the IRS is watching your crypto trades. In most countries, crypto gains are subject to capital gains tax - just like stocks.

What’s taxable?

• Selling crypto for fiat (e.g., USD)

• Trading one coin for another

• Using crypto to buy goods/services

What’s not (usually) taxable?

• Buying and holding

• Transferring between wallets you own

How to stay tax-compliant:

• Track every trade (even swaps between tokens)

• Use tools like Koinly, CoinTracker, or Accointing

• Understand short-term vs. long-term capital gains tax in your country

Pro Tip: Treat your crypto portfolio like a business. Keep records, know your tax laws, and consult a crypto-savvy accountant.

Exit Strategies: When to Take Profits?

You made gains. Now what? But without a plan, gains often turn into regrets. Here are some smart exit strategies:

• Percentage Rule: Sell 10–20% every time your asset doubles

• Milestone Targets: Set sell points like $50K or $100K per coin

• Diversify Profits: Take some profits and move into stablecoins or safer assets

Don't do this:

• Don’t wait for “just a little more”

• Don’t sell everything in panic

• Don’t ignore taxes—profits mean obligations

Always have a plan—before emotions kick in.

How to Simplify Your Crypto Investment

#1 Trackers, Portfolios, and Tax Calculators

Keep your portfolio clean and track your progress with these tools:

• CoinStats: Portfolio tracker with syncing across exchanges

• Delta: Simple and sleek app for crypto and stocks

• CoinMarketCap Portfolio: Free and web-based tracker

• Koinly: Tax reporting made easy

These tools help you stay organized, make better decisions, and report taxes without pulling your hair out.

#2 Setting Recurring Buys on Exchanges

Most top exchanges offer auto-invest or recurring buy features. This allows you to automate your Dollar-Cost Averaging strategy.

How to set it up:

• Go to the coin you want to invest in

• Click on “Recurring Buy” or “Auto-Invest”

• Set the amount, frequency, and payment method

And that’s it. You’re investing while you sleep.

#3 Communities and Learning Hubs

Crypto moves fast. Stay updated by joining active and trusted communities:

• Reddit like r/CryptoCurrency, r/Bitcoin, r/Ethereum

• Crypto news platforms like CoinDesk, CoinTelegraph, and Decrypt

• Crypto clubs like Learning Crypto’s give you expert insights

Stay curious, stay learning, and stay skeptical. The more you know, the smarter (and safer) your investments become.

Costly Mistakes to Avoid When Investing Monthly in Crypto

Start Your Monthly Crypto Investment Strategy Today

Many crypto-curious newbies are sitting on the sidelines, waiting for the "perfect moment" or the "right amount" to invest. But that moment never comes, and unfortunately, they’ll miss out.

With a monthly crypto investment strategy, you don't need perfect timing or a huge bankroll. Just start today, right now, with whatever you can afford.

Remember these core principles:

• Consistency beats perfection – $50 every single month will always outperform $500 once when you "feel ready"

• Start small, think big – Even $10/month builds the habit and teaches you the market

• Automate everything – Remove emotions and temptation by setting up recurring buys

• Diversify wisely – Bitcoin and Ethereum first, then explore quality altcoins

• Never invest scared money – Only use funds you can afford to lose completely

The best time to start was yesterday. The second best time is right now.

Go set up that recurring buy. Seriously, do it before you close this tab. Your future self (the one checking their portfolio in 5 years) will absolutely thank you.

Want to level up your crypto knowledge?

Learning Crypto offers AI-powered education and portfolio tracking to help you master crypto investing. 

Chat with our AI assistants Tobo and Heido for personalized guidance, track your monthly investments, and stay ahead with real-time market analytics.

Get Started Here

Frequently Asked Questions

What if I can only afford $10/month?

Start there! Seriously, $10 is enough to learn how crypto works and build the habit. You can always increase it later when your income grows. Consistency matters more than the amount. However, be aware of high fees on some exchanges that can eat into your investment.

Is it better to invest weekly vs monthly?

Either works fine. Weekly gives slightly better price averaging, but monthly is simpler and has fewer fees. Pick whichever you'll actually stick to long-term.

Can I change my monthly investment amount?

Certainly. Adjust when your income changes or priorities shift. Just don't change it based on price movements. Review quarterly and adjust thoughtfully, not emotionally.

What happens if I miss a month?

Nothing dramatic. Life happens. Just resume next month and don't beat yourself up. DCA is forgiving. What matters is the long-term pattern, not perfection.