Want to Make $10,000 With XRP or Solana? Do These 3 Things

XRP (CRYPTO: XRP) and Solana (CRYPTO: SOL) are two major cryptocurrencies that have been generating a lot of wealth for their investors during the past few years, including those who only invested a modest sum of money. However, it takes more than just buying and holding these coins to make a relatively formidable bag of cash, like $10,000.

There are three things in particular that you'll need to do consistently if you want your investments to excel with these two, so let's go through these must-do items.

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1. Refuse to buy these coins when hype is at the peak

First, let's examine this chart:

XRP Price data by YCharts

Both of these investments performed quite well during the past four years. But did you notice anything about the shapes of these charts? In both cases, there were periods of high prices, which lasted for a time before tumbling.

The price peaks of these two coins tend to occur when attention and hype is at a peak. When you're reading about the coins all the time, seeing them mentioned on the news, and fielding questions from your friends about whether these coins are worth buying. Do not ignore those signals.

If you want your small investments in XRP and Solana to grow to be huge, understand that buying when those signals are common means that you are setting yourself up to hold onto your coins for years in a position that's underwater relative to your cost basis.

This isn't to say that there is something inherently pessimistic about Solana or XRP experiencing a sharp run-up. It's perfectly acceptable to be placing small buys at pretty much any price level with both, as there's a strong investment thesis for why each can continue to gain in value.

Just be mindful that hype is not sustainable over the long term, even when the underlying asset is strong and likely to continue gaining in value when you zoom out your time horizon.

2. Commit to holding for the long haul, even if it's tempting to sell

Solana's investment thesis calls for it to be increasingly adopted as a hub for investing in meme coins, creating decentralized finance (DeFi) applications, sending payments quickly, minting non-fungible tokens (NFTs), and providing AI infrastructure on the blockchain. XRP's investment thesis calls for it to be increasingly integrated with the traditional financial system as a way to rapidly and reliably settle payments across borders and financial institutions, thereby driving demand for the underlying coin.

Both of those arguments have played out over time, and for them to continue to play out in your favor, it will be necessary to hold these tokens for more than just a year or two. That means when prices are at those peaks we discussed earlier, you may need to hold back on cashing out, at least partially.

After all, selling during the earlier peaks we identified meant potentially having fewer coins to sell during the peaks that occurred a few years afterward. Likewise, getting the biggest return required weathering bear markets without flinching. So don't give in and sell your coins just because the price is high or low on any given day or because you're hearing the tone of the related chatter change. Commit to keeping these coins for at least four years or more, and you'll be rewarded.

3. Gradually add eggs to these baskets

It will often be very tempting to make major investments in XRP and Solana when you have spare money or when it seems like their prices are rising and won't ever go down. But the much smarter long-term strategy is to dollar-cost average (DCA) into your positions.

Dollar-cost averaging removes a lot of the fear that investors have about buying when their tokens are richly valued. You're going to be buying either way, and as long as your individual DCA purchases are small amounts of money, the sting of paying too much for an asset is a lot less painful. It also removes the stomach-wrenching quality of the decision to buy when coins have been deeply sold off, which is precisely when the financial opportunity is the largest for those who are patient.

Many brokerages give you the opportunity to set up DCA plans automatically, so you don't even need to think about it. If you can do that, it makes sense. That way, your position will grow even as the coins themselves experience volatility that might dissuade you otherwise.

Remember, if you're truly interested in making $10,000 with investments in these two coins, you need to account for more than their beneficial traits or their price action -- you need to account for your own fickleness, so make a plan for working around it.

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Alex Carchidi has positions in Solana. The Motley Fool has positions in and recommends Solana and XRP. The Motley Fool has a disclosure policy.