A simple 40/25/15/20 allocation has proven resilient across multiple market cycles. The 20% altcoin allocation allows for upside exposure while limiting downside risk.
Crypto Portfolio Diversification: A Risk-Adjusted Approach
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A diversified portfolio reduces risk while maintaining growth potential. Here is my approach after 2 years of trading.
My Portfolio Allocation
| Asset Class | Allocation | Purpose | |-------------|------------|---------| | BTC | 40% | Store of value, anchor | | ETH | 25% | Smart contract ecosystem | | BNB | 15% | Fee savings, Launchpool | | Altcoins | 20% | High-risk, high-reward |
Rebalancing Strategy
I review and rebalance quarterly. The key is to buy low and sell high without emotional attachment.
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