I have some homework for you that will instantly improve your portfolio and completely change the way you think about your holdings.
Crypto is all about opportunity cost.
Thus, you must be in the highest upside assets at any given point in time, so long as they align with your goals.
Complete this exercise.
Let's say you hold $ETH in your portfolio. Ask yourself:
From now until the end of the cycle, will ETH outperform $SOL?
If the answer's no, hold SOL.
From now until the end of the cycle, will ETH outperform $DOGE?
If the answer's no, hold DOGE.
From now until the end of the cycle, will ETH outperform $ADA?
If the answer's yes, hold ETH.
Do this with every coin in your portfolio.
Will $WIF outperform $PEPE?
Will $WIF outperform $BONK?
And so on..
Keep going through every coin in your portfolio, until you've cross compared them all.
What you'll find, is that a lot of the time you could EASILY condense your portfolio in half, optimising for higher conviction asset allocation.
Just be genuinely critical with yourself whilst analysing each coin.
Bonus: Whilst asking these questions, look at the token pairs vs both USDT and $BTC. You might be surprised what is ACTUALLY exhibiting better relative strength.
Also remember, you must also adjust this framework for risk.
For example, if you think WIF will only MARGINALLY outperform SOL, it's probably still better to be in SOL due to increased risk-adjusted returns.
So don't use cross comparing majors with low caps as a justification for taking on more risk. Remember what I said earlier, these assets must "align with your goals".
Overall, I find it to be an interesting (and challenging) framework to think critically about asset allocation. I hope you found this post helpful!
Just my opinion 🙏. Dyor
