Crypto portfolios typically fall into 2 categories:
• Too aggressive and drops 90% during corrections
• Too passive, missing potential profits.
Here’s an article on how to build perfect portfolio
Before I begin, I have a favor to ask...
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1 ➮ First, you must set portfolio goals
✧ Here are the main goals:
- Lower Risks
- Increase Profits
- Track your moves
- Improve your skills
Portfolios vary greatly depending on your risk management, additional goals, and time, but the foundation is as follows
2 ➮ Overall, there are two main things to consider when creating a portfolio:
1. Balance
2. Meaning of each sector of your portfolio
✧ Understanding these 2 things, you can already put together a simple but useful portfolio.
Let's discuss each aspect separately
3 ➮ Balance
✧ You need to keep the portfolio balanced.
✧ This means having risky plays (lowcaps / alts in price discovery stage) and at the same time those that mitigate this risk (eth/btc)
✧ This way you can't lose everything, and you are taking what is called Wise risks
4 ➮ Meaning of each sector of your portfolio
✧ You must understand every aspect of your portfolio:
- Stables to reduce risk and buyback
- $BTC and $ETH for strong crypto position
- Large alts for long-term investment
- Risky alts for 10x profit and more
5 ➮ Another important thing is that the portfolio should vary depending on the market.
✧ You can't hold 50% in meme tokens during a bear market
✧ So, shift your stables depending on what season we're in
Now the most interesting
6 ➮ Somehow many know most of what I wrote above and yet they do everything wrong.
✧ That's exactly why I felt it necessary to go over the main problems when creating a portfolio.
✧ After this, we will move on to a few portfolios examples
Let's dive in
7 ➮ Aggressive portfolio
✧ Many see a post about a degen turning $1k into $1M and rush to invest everything in some coin
✧ Develop a strategy and stick to it
✧ Be patient and in the end, you end up being wealthy
8 ➮ Too diversified portfolio
✧ Diversification is good, even necessary.
✧ But many overdo it and with a portfolio of $1k buy 40 different coins
✧ You won't make a lot this way, so know your limit and keep it simpler
9 ➮ No rebalance strategy
✧ Rebalance means buying and selling assets to maintain the percentage allocation.
✧ Suppose one of your tokens has increased in value and now makes up 30% of your portfolio when it should be 5% max
✧ Take profit and rebalance it
10 ➮ Now that we have gone through all the basic mistakes, you are ready to start on your first portfolio.
✧ To help you understand where to start, below I will describe the 4 main types of portfolios
✧ % may vary depending on the risk/size/etc. of your portfolio
11 ➮ BTC ETH split strategy
✧ A simple strategy which I think is self-explanatory from the name.
✧ Use it if crypto is nothing more than a simple investment for you and you don't want to delve into it.
✧ Quite simple, safe, and profitable
12 ➮ The Barbell Strategy
✧ A strategy where we skip the middle part of investments and divide the portfolio into risky and non-risky plays.
✧ 50% are high-risk plays
Not completely safe but can be quite profitable
13 ➮ 50/25/25 strategy
✧ 25% Low Risk
✧ 25% Mid and High risk
✧ This is a basic, safe portfolio that suits everyone and doesn't take much time
14 ➮ Max diversifying strategy
✧ It's difficult to make a perfectly diversified portfolio, but for the 2024 cycle, I would do it like this:
- 10% in Stables
- 30% in $BTC/$ETH
- 10% in RWA
- 10% in AI
- 10% in GameFi
- 10% in L2
- 20% High risk plays
% may vary
15 ➮ Conclusion
✧ Remember that this is my opinion and my strategy.
✧ So always DYOR and invest only what you are willing to lose
✧ My portfolio recommendation is current but subject to change
✧ As the industry evolves, I continuously learn and adapt, and you should too
DONE!!!