Crypto Allocation Strategy

Once you’ve decided on the Crypto Projects you want to invest in, the next step to think about is your Crypto Allocation Strategy.  Conservative crypto investors usually allocate a larger portion of their portfolio to Bitcoin and a few other top projects with large market caps, liquidity and volume.  This is usually the type of allocation that’s recommended for most people, but bigger risk takers may want to have more exposure to lower cap crypto projects in the hopes that they’ll go to the moon! The choice on how to allocate your assets is completely up to you, but portfolio strategies like these can help reduce risk by minimizing over-exposure to any one project.

Here are a few portfolio examples for you to consider:

Conservative Crypto Portfolios

Bitcoin – 100%
      This portfolio is best suited for Bitcoin Maximalists who believe Bitcoin will accrue more value than any other crypto asset over the long term.

Bitcoin – 70%
Ethereum 30%
      Many people see Bitcoin as digital gold and Ethereum as the dominant smart contract platform.  So, this portfolio allocation would give exposure to both.

Bitcoin – 70%
Ethereum – 20%
Stablecoins – 10%
      Having a small allocation to stablecoins can be a great strategy, especially if you use this portion of your portfolio to buy major dips in your other crypto assets.  This strategy can be even more powerful if you put your stablecoins to work by using an interest strategy while you wait for the dips.

Conservative Crypto Portfolio

Moderate Risk Portfolios

Bitcoin – 60%

Ethereum – 20%
Blue Chip Alt Coins – 20%  (Projects in Top 20 or so)
    •  While still providing a decent amount of exposure to Bitcoin and Ethereum, this portfolio also gives you exposure to multiple blue chip alt coins.  The extra exposure to the alt coins can potentially increase your upside potential.

Bitcoin – 60%
Ethereum – 20%
Blue Chip Alt Coins – 15%
Stablecoins – 5%
    •  This portfolio adds in a small allocation to stablecoins to take advantage of major dips while also earning a great interest on those stablecoins while you wait for buying opportunities

Bitcoin – 60%
Ethereum 20%
Blue Chip Alt Coins – 10%
Moon Bags – 5% (Projects outside the Top 20 or so)

Stablecoins – 5%
    •  If you’re interested in adding a few of those enticing low cap crypto gems into your porfolio, then an allocation like this could serve you well.  Even though these low cap gems are very risky, some of them have incredible upside potential, so many investors want some exposure to them.

Crypto Portfolio Allocation

High Risk Portfolios

Bitcoin – 55%
Ethereum – 15%
Blue Chip Alt Coins – 20%
Moon Bags – 10%
    •  This portfolio reduces exposure to Bitcoin and Ethereum in favor of higher risk alt coins.  For most investors a 30% allocation to alt coins should be more than enough to give them the additional upside they seek without too much additional risk.

Bitcoin – 40%
Ethereum 20%
Blue Chip Alt Coins – 20%
Moon Bags – 20%
    •  Even more exposure is provided to higher risk alt coins in this portfolio.  If you’re good at choosing great crypto projects, adding this extra exposure to your moon bags might pay off in the end.

Bitcoin – 30%
Ethereum 20%
Blue Chip Alt Coins – 20%
Moon Bags – 20%
Yield Farming – 10%
    •  If you have a high tolerance for risk and really want to get the most out of the opportunities in the crypto industry, a portfolio like this may be exactly what you’re looking for.  Adding in exposure to Yield Farming strategies is a great way to boost your profits even further!  Yield Farming has plenty of risks that investors should be aware of, but it’s a proven strategy that works if you know how to get in and out of farming opportunities at the right time.

Re-balance As Often As You Can

Portfolio Rebalancing

We recommend rebalancing your portfolio at least once every quarter.  Crypto allocations can change very quickly based on market conditions, and keeping your portfolio allocations aligned with your goals can help minimize risk.  Essentially, re-balancing allows you to utilize a disciplined approach that automatically buys assets that have under-performed and sells assets that have over-performed. So, regular re-balancing helps a person buy low and sell high, all while minimizing risk.

Be sure to check out our other Crypto Strategy Articles:

The strategy in this article is best combined with the other strategies Crypto Renegade teaches.

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

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When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing.

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If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

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For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

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Feel free to ask any questions about the allocation strategies above or suggest your own strategy in the comments below.

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