Despite rising interest in , many retail investors continue to remain cautious due to the market’s volatile and high-risk nature. However, industry experts say investor behaviour is gradually becoming more disciplined and mature. Here’s a look at, what strategy should retail investors follow while entering or increasing exposure to crypto assets in the current market environment
What is the right crypto investment strategy for retail investors today?
For retail investors, the strategic playbook right now should be accumulate with conviction, not noise, advises Sumit Gupta, Co Founder at
When investing in crypto, it is important to invest regularly, whether weekly or monthly. This helps reduce the impact of short-term market volatility and allows investors to build positions at better average prices over time. Like stock investments, Trying to perfectly time the market bottom usually does not work as well as staying invested patiently.
It is also important to focus on quality assets. “The market has self- corrected on speculative excess. Meme tokens have largely faded from the top-tier rankings and that is a healthy signal,”Gupta asserts
Retail investors, now, should focus on assets with:
- real use cases,
- institutional support,
- and favourable regulations
For example, Bitcoin and a few large-cap digital assets.
However, investors should invest carefully and size positions responsibly, says Gupta and adds “A disciplined allocation, meaningful enough to matter, small enough not to destabilise a broader portfolio is the right framework.”
How to make crypto part of you asset allocation?
As per Gupta, a simple straight-forward framework would be:
- Allocating around 2% to 5% of the portfolio to crypto is a sensible starting point. It allows investors to benefit from potential upside while keeping overall portfolio risk under control.
- For investors who understand Bitcoin, blockchain activity, and how global economic cycles affect digital assets, a 5% to 10% allocation can also make sense .
- Within this allocation, Bitcoin should remain the core holding.
- Investors looking for broader exposure can add a small allocation to a few large-cap crypto assets that have real-world use cases and institutional adoption.
How investor behaviour towards crypto has changed?
Today, the way Indian investors are approaching crypto is very differently compared to two or three years ago. And “it reflects a broader maturation that we are witnessing directly on our platform.”
Earlier, many Indian retail investors entered crypto markets based on short-term trends. Investments were largely driven by hype around meme coins, small tokens, and new market narratives. In contrast, today, investor behaviour has changed significantly.
For example:
- Investors are now focusing mainly on and a few large-cap crypto assets with strong use cases and institutional support.
- They are also staying invested despite market volatility instead of selling in panic.
- SIP-style investing in crypto is becoming popular among Indian retail investors, much like mutual fund SIPs became common over time.
“The conversation has moved from which token will 10x to what percentage of my portfolio should be in digital assets and how do I size it correctly,” the industry expert adds.
This is a meaningful behavioural change.