Polkadot Price Prediction 2024 – 2025 – 2030 | DOT Price Forecast

In this guide, we will voice our own and market’s opinion on Polkadot future while discussing DOT price forecast for 2024 and beyond.

Please bear in mind that you should take this and any other prediction with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a novel, highly volatile financial asset like Polkadot.

Now, let’s head into it.

Before we delve deep into the Iota price prediction and answer questions if Polkadot is a good investment or not, why will Polkadot succeed or fail or why will Polkadot price rise or drop, let’s quickly throw a glance at what is Polkadot and its to date history.

Quick overview
👉 Polkadot Price Prediction For The Next 3 Months
Our DOT price forecast suggests the token price will be around $3.70 in the next 90 days.

👉 Polkadot Price Prediction 2024
Our DOT price forecast suggests the token price will be around $29.72 in 2024.

👉 Polkadot Price Prediction 2025
We predict the Polkadot price to hover around $51.31 in 2025 based on our analysis.

👉 Polkadot Price Prediction 2026
In 2026, we expect the Polkadot price to be approximately $58.55 according to our price prediction model.

👉 Polkadot Price Prediction 2027
Our DOT prediction indicates the token price will be in the vicinity of $73.94 in 2027.

👉 Polkadot Price Prediction 2028
For 2028, we forecast the DOT price to be around $89.33 given current trends.

👉 Polkadot Price Prediction 2029
Looking ahead to 2029, we estimate the Polkadot price will settle around $104.73.

👉 Polkadot Price Prediction 2030
Our DOT price prediction suggests a token price of about $110.32 by 2030 based on projected growth.

What is Polkadot

Polkadot is a next-generation blockchain protocol created by Gavin Wood, co-founder of Ethereum, that connects multiple blockchains to enable secure and scalable communication and information sharing. It is now managed by the Web3 Foundation and developed by Parity Technologies.

Many of the native parachains of Polkadot will be written using a Polkadot Runtime Environment SDK (e.g. Parity Technologies’ Substrate).

How does Polkadot work?

The structure of Polkadot comprises a central chain known as the Relay Chain, along with numerous parallel chains referred to as Parachains and Parathreads. The Relay Chain is the backbone of the network, maintaining security and consensus, while the Parachains and Parathreads are assigned specific roles and applications.

Relay Chain: This is Polkadot’s core chain, orchestrating the entire network. It employs a Nominated Proof-of-Stake (NPoS) consensus model, allowing token holders to select validators to fortify the network. Additionally, it administers the network’s governance and interoperability functions.

Parachains: These are autonomous blockchains operating concurrently with the Relay Chain. They possess their distinct consensus protocols, token systems, and governance models. Parachains are versatile and can be tailored to fulfill specific needs like smart contracts, privacy, or decentralized finance.

Parathreads: Functioning similarly to Parachains, Parathreads adopt a pay-as-you-go approach, utilizing security and resources only when necessary. This model is economically efficient for applications experiencing irregular usage or lower traffic.

How Is the Polkadot Network Secured?

Polkadot employs a shared security model, allowing multiple blockchains to consolidate their resources to augment their collective security. This model stands in contrast to the conventional Proof-of-Work (PoW) and Proof-of-Stake (PoS) systems, where each blockchain vies for resources to safeguard their networks.

By integrating with Polkadot, blockchain creators can tap into the collective security offered by the network, facilitating the secure launch of new blockchains from inception. This collaborative security methodology is a pivotal innovation of Polkadot, addressing the security hurdles encountered by numerous blockchain initiatives.

Polkadot Price Prediction

As the first part of 2024 concluded, we can say that this year has started on a high note for the cryptocurrency industry, marked by significant milestones and growing enthusiasm. Following the landmark approvals of Bitcoin ETFs, there has been a noticeable surge in interest from both retail and institutional investors, signaling a robust period of growth and acceptance for digital assets. These developments have not only bolstered investor confidence but have also hinted at a maturing market that is increasingly aligning with traditional financial systems.

With the regulatory landscape beginning to stabilize and provide clearer guidelines, the cryptocurrency market is poised for a transformative year, potentially setting new benchmarks for adoption, innovation, and investment.

Bitcoin ETF approvals were done in early January, setting a positive tone for the market. Analysts had predicted the SEC would decide on Bitcoin ETF applications potentially catalyzing industry growth. The approvals have been seen as a significant step towards mainstream acceptance and have sparked optimism among investors and traders alike. Now, attention is turning towards post-halving rallies, with the BTC halving now behind us.

Bitcoin has almost tripled in price since last summer, with the recent Wall Street earthquake and the upcoming halving expected to further boost Bitcoin, Ethereum, and the broader crypto market. Bitcoin is trading around $65k now, after it hit a new ATH of $73k in March.

Ethereum also had its own ETFs approved by SEC. The ETH price is currently around $3,500 and still has not broken its ATH from the 2021 bull run. Investors are hopeful this will happen soon.

The majority of investors, traders, and crypto influencers are hopeful that the real crypto bull run will finally commence, bolstered by the recent ETF approvals and anticipation of the upcoming Bitcoin halving event. ETFs, a growing meme coin, AI crypto coins, and RWA mania have helped the bull run to gain momentum. The total market cap (TMC) is now $2.3 trillion.

DOT Price Prediction For The Next 90 Days 

Below is a tabular overview of how will DOT develop in the short-term (for the next 90 days), according to our prediction model:

Next 30 days
Next 60 days
Next 90 days
+7.41 % $6.56
+4.26 % $6.37
+0.84 % $6.16
-2.14 % $5.98
-0.52 % $6.08
+0.90 % $6.16
+4.36 % $6.37
+4.39 % $6.38
-2.73 % $5.94
+1.78 % $6.22
+0.91 % $6.16
-4.39 % $5.84
+2.86 % $6.28
-1.92 % $5.99
-5.18 % $5.79
-5.01 % $5.80
+1.25 % $6.18
-0.61 % $6.07
+0.77 % $6.16
-8.79 % $5.57
-9.37 % $5.54
-5.44 % $5.78
-3.39 % $5.90
-6.81 % $5.69
-5.29 % $5.79
-9.16 % $5.55
-6.51 % $5.71
-4.81 % $5.81
-6.61 % $5.70
-10.84 % $5.45
-13.86 % $5.26
-6.19 % $5.73
-12.22 % $5.36
-10.29 % $5.48
-14.21 % $5.24
-14.79 % $5.21
-10.42 % $5.47
-7.95 % $5.62
-14.43 % $5.23
-11.53 % $5.40
-13.99 % $5.25
-13.77 % $5.27
-18.74 % $4.96
-10.92 % $5.44
-15.59 % $5.16
-18.22 % $5.00
-15.06 % $5.19
-19.66 % $4.91
-16.60 % $5.09
-19.84 % $4.90
-21.03 % $4.82
-21.24 % $4.81
-16.95 % $5.07
-17.72 % $5.03
-17.42 % $5.04
-23.01 % $4.70
-23.93 % $4.65
-17.80 % $5.02
-18.84 % $4.96
-23.89 % $4.65
-20.30 % $4.87
-20.20 % $4.87
-24.17 % $4.63
-24.18 % $4.63
-20.98 % $4.83
-22.88 % $4.71
-22.41 % $4.74
-26.02 % $4.52
-26.06 % $4.52
-26.34 % $4.50
-29.05 % $4.33
-30.79 % $4.23
-29.31 % $4.32
-28.12 % $4.39
-32.88 % $4.10
-28.49 % $4.37
-32.41 % $4.13
-29.50 % $4.31
-34.00 % $4.03
-34.42 % $4.01
-34.52 % $4.00
-31.75 % $4.17
-33.38 % $4.07
-35.01 % $3.97
-36.82 % $3.86
-33.12 % $4.09
-32.20 % $4.14
-33.74 % $4.05
-35.63 % $3.93
-39.40 % $3.70

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✔️Binance for highest liquidity and coin choice. 
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✔️ByBit for leveraged trading
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Trading Tools

A good charting tool is a must if you want to try yourself out as a day-trader. ✔️Tradingview is best known but
are also excellent plus they allow automated trading.

Polkadot Price Prediction 2024 

2024 Aug
-18.74 % $4.96
2024 Sep
-29.31 % $4.32
2024 Oct
-24.30 % $4.62
2024 Nov
-11.19 % $5.42
2024 Dec
-6.60 % $5.71
2025 Jan
+4.55 % $6.39
2025 Feb
+8.09 % $6.60
2025 Mar
+16.99 % $7.15
2025 Apr
+24.88 % $7.63
2025 May
+30.56 % $7.97
2025 Jun
+40.00 % $8.55
2025 Jul
+47.00 % $8.98

DOT Price Prediction 2025 

Our prediction model sees DOT reaching $51.31 in 2025.

What will DOT be worth in 5 years?

The price of DOT in 5 years could lie around $13.74, according to CaptainAltcoin’s prediction model.

Polkadot Price Prediction 2030 – 2040

What Polkadot will be worth in 2030?

Our forecasting model sees Polkadot reaching $128.28 in 2030.

What Polkadot will be worth in 2040?

Our forecasting model sees Polkadot reaching $256.55 in 2040.

Will Polkadot replace / surpass / overtake Bitcoin?

No, Polkadot will not replace or overtake BTC.

Can Polkadot reach $1000?

Yes, it is possible that Polkadot can reach $1000 but only in a distanced future, after 2030.

Is Polkadot worth buying?

We are advocates of moderately risky investing – invest most of your crypto portfolio in BTC (50%); 35% in a basket of big cap coins and the rest in small projects with huge upside. So, in this context, Polkadot is worth buying.

Is Polkadot a good investment?

Polkadot is, just like all other cryptocurrencies, a risky investment. It does have higher probability of going up than down because of the good use case, well-designed tokenomics, active community and a solid team behind it.

How much will Polkadot be worth?

For the short-term future, it could reach $3.70. In the long-term (8-10 years), it could jump to $128.28 or even higher.

Why will Polkadot succeed and go up in price?

Polkadot has a good use case, well-designed tokenomics, active community and a solid team behind it. All of these are a prerequisite for success and that is why our prediction model sees Polkadot rising up to $128.28 in 2030.

Why will Polkadot fail and drop in price?

Crypto projects fail for various reasons. Some of the most common ones are: team goes rogue and abandons the project, regulators declare it illegal and press exchanges to delist it, lack of media attention, more successful competitors, lack of well designed marketing strategy, losing community support, potential vulnerability in the protocol, failing to achieve anticipated minimum developement activity on the protocol, failing to attract new developers to build on their platform.

How high will Polkadot go?

Our forecasting model sees Polkadot price exploding and reaching $256.55 in a distant future.

What is the short-term prediction for Polkadot?

Polkadot will reach $3.70 in the next 90 days, which is a 39.4% change over the current price which hovers around $6.11.

Can Polkadot make you a millionaire?

Yes, if you buy large enough sum of it. Do not expect to invest $100 and become a Polkadot millionaire. But 100x price explosions are a common sight in crypto, so a $10k investment in Polkadot could make you a millionaire.

Polkadot Price Prediction Today - What will be the price of Polkadot tomorrow?

Polkadot will hover around $6.56 tomorrow.

Can Polkadot explode?

No, Polkadot price will not explode and record 5-10x pumps; but grow more modestly with an increase of 47% in the next year.

What will be the price of Polkadot in 10 years?

Polkadot price in 10 years will hover between $128.28 and $256.55.

Polkadot Price Prediction 2023 - What will Polkadot be worth in 2023?

Polkadot will reach $15.61 in 2023, which is a 155.57% change over the current price.

Polkadot Price Prediction 2024 - What will Polkadot be worth in 2024?

Polkadot will reach $29.72 in 2024, which is a 386.57% change over the current price.

Polkadot Price Prediction 2026 - What will Polkadot be worth in 2026?

Polkadot will reach $58.55 in 2026, which is a 858.44% change over the current price.

Polkadot Price Prediction 2027 - What will Polkadot be worth in 2027?

Polkadot will reach $73.94 in 2027, which is a 1110.44% change over the current price.

Polkadot Price Prediction 2028 - What will Polkadot be worth in 2028?

Polkadot will reach $89.33 in 2028, which is a 1362.44% change over the current price.

Polkadot Price Prediction 2029 - What will Polkadot be worth in 2029?

Polkadot will reach $104.73 in 2029, which is a 1614.44% change over the current price.

Polkadot Price Prediction 2050 - What will Polkadot be worth in 2050?

Polkadot will reach $389.96 in 2050, which is a 6284% change over the current price.

Can Polkadot reach $100?

Yes, Polkadot could reach $100 by the end of 2024.

Read also:


Many investors (traditional and crypto) will tell you that fundamentals are extremely important and should carry the most weight when you assess a project. We agree with this claim, to an extent.

Crypto is specific in a sense that fundamentals are hard to rely on. How come?

Well, most of the crypto investors are not technologically refined to understand if it is even feasible to do what the project claims to be doing. This leads to exaggerated and unsubstantiated roadmaps by many crypto project teams. These roadmaps sound terrific and people flock to invest in the project even though, with a little technical or economical knowledge, they would have seen how ridiculous some of those ideas are.

⚡️ Use case

For this reason, it is always good to check the feasibility of the use case by consulting someone more technically astute.

For example, a lot of these projects noticed the transaction speed issue with Bitcoin so they went all-in with how fast their blockchains are. But that speed came at a cost of decentralization. Essentially, they claimed to have solved a blockchain trilemma, which bugged geniuses for centuries. But some twenty-something no-names solved it in a week or so.

What does Polkadot do?

Not very original use case. Just another smart contracts platform that aims to be faster and more efficient than Ethereum. Making ground on ETH will be a steep hill to climb. However, Polkadot proved it can shake the Ethereum boat as its rise to prominence was rapid which lead to many Ethereum projects to extend their reach to Polkadot platform as well.

Delays have continued to weigh on Ethereum which keeps giving a striking chance to its competitors like Polkadot, Cosmos, NEO, Cardano and many others.
Main advantage of Polkadot over Ethereum and other competitors is its superior design, from the getgo.

Parity Substrate and Polkadot solve all of the problems that have prevented blockchain from achieving the full potential of the vision of what blockchain could be for the world:
network security for small chains (which comes from the genius method of using the Polkadot relay chain to fortify/defend small parachains)
guaranteed performance of each parachain (comes as a benefit of hetergenous sharding- i.e. prevents the problem of cryptokitties showing-up and causing everyone else’s dApp to run slower)
scalability (infinite- no limits to how many parachains can be created in the ecosystem)
interoperability (for BOTH crypto currency transactions AND data exchanges over the relay hub; the latter blows the potential for new use cases wide open -> search the term “extrinsic” if you want to learn more)
governance (liquid democracy is a huge step forward!)
smart contract upgradeability (if you are a developer you know that this is a massive problem for all of the Ethereum-derived chains)

⚡️ Team

Assessing the team behind the project is another point that needs to be addressed. More often than not, those people will be the only source of their claims (and doctored LinkedIn profiles). So, even though this is an important criterion, bear in mind that a cunning team of marketers can fake legitimacy.

One huge RED FLAG about a team is tweeting, posting, blogging about the price of their token. No legitimate team does that as they have smarter things to do – like work on a multi-million dollar project of theirs. Only money grabbers run their official social media and blogs as the most blatant market manipulators (example: Justin Sun) to run the price up before they dump their mountains of coins they created out of nothing and awarded to themselves.

Such teams usually pay off low-tier crypto media publications to post “unbiased” articles and reviews of their projects in an attempt to create an illusion of a widely respected and attractive project.

Polkadot forecast – team

Very transparent and professional. No price action shilling or commenting, focused on building.
Polkadot was founded by the Web3 Foundation, a Swiss Foundation founded to facilitate a fully functional and user-friendly decentralized web, as an open-source project.
Its founders are Dr. Gavin Wood, Robert Habermeier and Peter Czaban.
Wood, the Web3 Foundation’s president, is the most well-known of the trio thanks to his industry influence as Ethereum co-founder, Parity Technologies founder and the creator of the smart contract coding language Solidity.
Habermeier is a Thiel Fellow and accomplished blockchain and cryptography researcher and developer. Czaban is the Web3 Foundation’s Technology Director. With a wealth of experience across highly specialized fintech industries, he is currently helping to develop a new generation of distributed technology.

⚡️ Community

Community – pay special attention to this one. Size of the community is not relevant as it can easily be faked (just check Fiverr or Upwork to see how easy is to buy 100k of Twitter followers or subreddit subscribers).

What is more important is the content those community members post – does it look real? Is it only price-centered? It it allowed to exercise some critical thinking or the only posts allowed are shills and cult-like idolizing of the team (most often the team leader gets a rockstar status among the sheepish investors).

Is Polkadot worth investing in – community assessment

Very active subreddit with almost 20k subscribers and pretty active Telegram and Discord groups. Seems to be genuine and authentic, no bots, no low-quality posting about moons and price action.

⚡️ Exchanges and wallet support

Another good indicator of how serious is the project taken by other crypto agents. Some smaller and marginal exchanges and wallets can be paid off for listings but larger platforms like Kraken, Binance or Coinbase lend legitimacy to a project that is listed there. So, that is a great cue if the project is actually worth something among its peers.

Why will Polkadot succeed?

Very good support among the popular exchanges (Binance, Bitfinex, Kraken, Kucoin etc) and wallets (Atomic Wallet, Trust Wallet, Guarda etc.).

⚡️ Tokenomics

Token Designation: Polkadot (DOT)

Native Token: DOT serves as the intrinsic token of the Polkadot network, analogous to BTC for Bitcoin and ETH for the Ethereum blockchain.

Supply Details: It is anticipated that the total supply of DOT will escalate to 1.5 billion tokens by January 2025. Initially, DOT had a supply of 10 million; however, post-redenomination, 1 DOT is equivalent to 10^10 Planck.

Utility of the Token: Within Polkadot’s realm, DOT proprietors have the privilege to engage in network governance, which includes casting votes on various proposals and referenda. DOT is also pivotal for staking in the network’s Nominated Proof-of-Stake (NPoS) consensus model, allowing token holders to allocate their tokens to endorse validators and receive rewards. Furthermore, DOT is instrumental for bonding/crowd loans, enabling projects to acquire a parachain slot by leasing DOT from the community and reimbursing it progressively.

Token Inflation: Unlike protocols like Bitcoin which have a fixed supply monetary policy, DOT adopts an inflationary approach. This inflation is strategically implemented to motivate network participation by modulating the token supply in alignment with the network’s requisites.

⚡️ Trading volume

Trading volume is another excellent barometer of the quality of the assets. This can also be faked by automatic and wash trading on small exchanges but, just filter those out and see if there is actual liquidity on the bigger platforms.

Polkadot future – trading volume

Excellent and consistent trading volume in the last 3 months with ocassional spikes and drops. It moves in the range between $2 to $8 billion per day which is impressive for a relatively new asset. The 24h trading volume hasn’t dropped below $1 billion in the whole 2021.

Speculative potential

Now, we’re talking about the really impactful market forces.

Unfortunately, the power of social media, especially Twitter, Discord, and Telegram groups and to a smaller extent subreddits and Facebook groups, often outweighs the fundamentals of a crypto project. As a consequence, we see trash and half-dead zombie projects like Dogecoin, Electroneum, Verge, Tron (not dead but everything is faked around it, from the number of users and dapps to the unoriginal and uninspiring, incompetent leadership) and similar shitcoins rising up in the market cap rankings, sometimes even entering the top 10.

The speculative wave can lift you into the skies but can, more often, smash your portfolio into a big zilch.

Some people are good at swimming with these sharks (Twitter personas hidden behind some lame nicknames like Crypto [INSERT ANIMAL) or Crypto [INSERT VERB]) that coordinate their shilling and price pumps and dumps. However, ordinary crypto buyers have no time or skills to keep up with them and are used as a plankton – food for the bigger crypto sea creatures to feast on.

Nevertheless, social media can be a place you run into some good tips about hidden gems. When you read something that sparks your interest, don’t get overexcited and invest right away. Instead, put it on a watchlist and check all of the stuff we mentioned above.

The key thing to look for is authenticity – does the community, social media posts of crypto personas, articles about the project on crypto media look legit? Is it posted by the well respected people with a strong reputation or by no-names who shill coins left and right? Is the community aware of potential flaws of the chosen project and is it allowed to discuss them? Are there systemic complaints of sudden bans and censorship by the community moderators?

A good project is not that hard to recognize and once you see posts about it by other people – check their profiles, check their tweet/post history, see if the recommendation comes across as a genuine suggestion or an artificial shill made out of self-interest?

Is Polkadot legit?

Polkadot enjoys a great reputation in the wide crypto circles. The team behind it is especially well-established and commands respect among the crypto users. The project garners the attention of a wide crypto base, tweets and posts about it on social media seem to be genuine and uncoordinated which means people recognize it as a legit project.

There are tons of positive tweets about the revolutionizing potential of Polkadot’s tech and a slew of crypto Twitter analysts claim to be trading and holding DOT for the long-term. All of this puts DOT as one of the hottest coins to hold in the future.

Market Price Predictions

  • CryptoNewsZ predicts Polkadot’s price will be around $7.54 in 2024 and $17.05 in 2025.
  • Traders Union forecasts Polkadot’s price at $4.09 in 2024, $4.335715 in 2025, and $21.59 in 2030.
  • DigitalCoinPrice expects Polkadot’s value to increase 232.27% by the end of 2025, reaching $13.98.
  • BTCC did not explicitly mention 2024, 2025, and 2030 price predictions but believes Polkadot could outperform forecasts in 2025 if the market turns bullish.
  • For 2024, Changelly sees a long-term bullish outlook for Polkadot, potentially reaching $7.22.
  • Changelly’s prediction for 2028 is a Polkadot price oscillating between $45-$75, depending on various factors.

Polkadot Price Prediction – summed up

Having analyzed all of the above on Polkadot, we can say that this is a legit project with a unique chance to actually be the project that will overcome the daunting task in front of it – outcompeting Ethereum to be crowned as the king of smart contract platforms. It enjoys a good standing in the crypto circles and could be a worthy investment in the short and long-term.

Polkadot is an impressive achievement in blockchain technology and engineering. In a world of competing cross-chain protocols and difficult-to-scale networks, Polkadot offers a refreshing and community-powered framework to build a better, more decentralized ecosystem of applications that is interoperable with existing technologies.

Where and how to buy DOT

This is how you can buy Polkadot (DOT):

  • Download a Polkadot Wallet (Parity Signer, Atomic Wallet, Guarda, Trust Wallet usw)
  • Create your DOT-Adress
  • Find an exchange that lists DOT (Binance, Kraken, Kucoin) and buy DOT
  • Transfer DOT from the exchange to your wallet


✅low fees ✅supports lots of coins ✅bank & credit card deposits ✅Savings Account ✅Staking ✅Lending

If you are not happy with Binance or can’t use it for some reason, here are a couple of alternatives:

Kucoin low fees

Deposit: ⚡️Credit Card ⚡️SEPA ⚡️Bank transfer ⚡️Crypto

Kraken best for trading

Deposit: ⚡️Credit Card ⚡️SEPA ⚡️Bank transfer ⚡️Crypto

Cex.io lot of payment methods

Deposit: ⚡️Credit Card ⚡️SEPA ⚡️Bank transfer ⚡️Crypto ⚡️Skrill ⚡️AdvCash

That is how you buy Polkadot, in a nutshell.

Read also:

Polkadot Wallets

Polkadot is already integrated by some of the most popular crypto wallets like Trust Wallet, Guarda or Atomic Wallet. It also has integration with a hardware wallet like Ledger Nano X or S.

The native Polkadot Wallet is Polkawallet.

Trust Wallet desktop, web, MOBILE WALLET

Atomic Wallet mobile, desktop wallet

Guarda Wallet mobile, desktop, web

Measure in Satoshis

The following advice is only meant for long-term holders and crypto believers. For short-term speculators and crypto-skeptics, it makes sense to use USD as the only measuring stick.

You will always want to know if the effort of trading was worth it as opposed to just hodling BTC. You should also account for the time you spent trading as that time also has value.

For example, if you spent 15 hours trading altcoins and you ended up having the same amount of Satoshis, it means you have wasted those 15 hours and would have been better off if you simply held BTC.

Since Bitcoin sits in between the Fiat and Alt Coin sandwich, you should only ever trade in BTC value.

For example:

If I invest in an altcoin at .17 cents at 10k Sats and in 6 months, I cash out at .93 cents at 10k Sats. Did I make money in that altcoin?

The answer is no. Your opportunity cost was equal to holding bitcoin since the sat values didn’t move, the price of BTC going up is what netted you your increase in fiat. Not the increase of sats on STEEM.

If, however, you cashed out of STEEM at 20k sats at .93 cents over the course of 6 months, that means you made a profit in satoshi value as well as USD value (through bitcoin).

Constructing a Investment Strategy

I can’t stress enough how important it is to construct an actual investment strategy. Organize what your goals are, what your risk tolerance is and how you plan to construct a portfolio to achieve those goals rather than just chasing the flavor of the week.

Why? Because it will force you to slow down and make decisions based on rational thinking rather than emotion, and will also inevitably lead you to think long term.

Setting ROI targets

Bluntly put, a lot of young investors who are in crypto have really unrealistic expectations about returns and risk.

A lot of them have never invested in any other type of financial asset, and hence many seem to consider a 10% ROI in a month to be unexciting, even though that is roughly what they should be aiming for.

I see a ton of people making their decisions with the expectation to double their money every month. This has lead a worrying amount of newbies putting in way too much money way too quickly into anything on the front page of CoinMarketCap with a low dollar value per coin hoping that crypto get them out of their debt or a life of drudgery in a cubicle. And all in the next year or two!

Keep in mind that a 10% monthly increase when compounded equals a 313% annual return, or over 3x your money. That may not sound exciting to those who entered recently and saw their money go 20x in a month on something like Aave before it crashed back down.

Read also:

Summing it all up

Consider the individual risk of each crypto and start looking for red flags:

  • guaranteed promises of large returns (protip: that’s a Ponzi)
  • float allocations that give way too much to the founder
  • vague whitepapers
  • vague timelines
  • no clear use case
  • Github with no useful code and sparse activity
  • a team that is difficult to find information on or even worse anonymous

While all cryptocurrencies are a risky investments but generally you can break down cryptos into “low” risk core, medium risk speculative and high risk speculative

  • Low Risk Core – This is the exchange pairing cryptos and those that are well established. These are almost sure to be around in 5 years, and will recover after any bear market. Bitcoin, Litecoin and Ethereum are in this class of risk, and I would also argue Monero. Allocate most of your funds into this basket.
  • Medium Risk Speculative – These would be cryptos which generally have at least some product and are reasonably established, but higher risk than Core. Things like Stellar, Cardano, BNB, NEO..etc.
  • High Risk Speculative – This is anything created within the last few years, low caps, shillcoins, DeFi…etc. Most cryptos are in this category, most of them will be essentially worthless in 5 years. Invest a very small portion of your funds and only what you can afford to lose (and I truly mean it because there is a big chance you will lose it all).


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Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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