To invest in crypto without losing money, timing and strategy are key. A smart approach involves anticipating when money will flow into the broader economy, as this often leads to market upswings. One reliable example is tax season. Historically, crypto markets tend to see a boost during this period, as people receive their tax returns and have extra funds to invest. The trick is to invest before tax season begins. Over the past five years, many cryptocurrencies have experienced significant gains during this time, with some coins doubling or even more in value.

Diversifying your portfolio is also crucial. By spreading your investments across various coins, you reduce the risk associated with any single asset. Additionally, keep an eye on potential market-moving narratives. For instance, last year, the buzz around a possible Bitcoin ETF started lifting prices in October, well before tax season, and sustained that momentum until March. By the time tax returns were spent, the market had peaked, and prices began to drop.

In 2022, the market didn’t start to rise until January, but savvy investors who bought in just before tax season saw substantial gains when the influx of tax returns hit in February. They were able to capitalize on the market’s peak by selling at the right time.

Looking ahead, upcoming events like elections or potential rate cuts could serve as catalysts for the market. If a pro-crypto president is elected, we might see early market pumps, similar to previous years. This makes now a potentially good time to start dollar-cost averaging into certain coins, like HBAR, which has already reached its typical yearly low.

On the other hand, coins like Solana, which have recently seen significant gains, might take longer to reach their lows, especially if the economic downturn continues. In such cases, waiting a bit longer before investing might be wise.

So, investing when people have been strapped for cash for a while, particularly towards the end of the year, can be a solid strategy. Buying when others are cash-strapped and selling during tax season can lead to significant returns, with many top 100 coins at least doubling in price and meme coins offering even greater potential gains.