@Haejin made a recent post about What does a Model Crypto Porfolio Look Like?
In this he outlines a basic crypto portfolio model with a certain % of core coins and exposure to altcoins designed to give massive gains.
This got me thinking about alternative portfolio structures and I came up with 3 basic ways of structuring one's crypto portfolio depending on risk exposure and strategies for investment. They are all based around a 60/20/20 principle but with different goals & utility.
20% Core Coins (Bitcoin, Eth, etc)
60% USD/USDT
20% in Alts
Strategy: Keep a highly mobile USD/USDT cash reserve which is used to throw smaller stacks (maybe 5-10%) into cryptos with a high degree of profitability at smaller market caps. Release these back to USDT when they have made sufficient profit (20-200% based on degree of risk one is willing to take on). Do not invest in Alts that have already hit a market cap that makes large gains quickly unlikely.
In times of correction or when high profit potentials are spotted, allocate more USDT into alts to maximise benefits.
This portfolio is highly fluid, but in a core coin bull market, alts may fall substantially so ensure to convert back to USDT when profit targets are hit.
60% Core Coins (Bitcoin, Eth, etc)
20% USD/USDT
20% in Alts
Strategy: Keep 60% in Core coins to benefit from these when the overall market cap grows of crypto and more users enter the space.
High fluidity as always. Utilise 40% in highly mobile USD & Altcoins, either on a fast/medium-speed trading basis or hold onto projects that are potentially going to be around in the coming years.
20% Core Coins (Bitcoin, Eth, etc)
20% USD/USDT
60% in Alts
Strategy: Keep a moderate amount in core coins, a moderate cash reserve to see-through corrections, and 60% in alts on a mid-long term basis based on their potential future utility.
Try to catch alts when their market caps are miniscule (as in every scenario) to maximise gains. Rarely sell unless a coin is perceived to have hit it's peak and potential losses in future are spotted that would hamper a projects ability to grow.
I find the best strategy is to remain fluid overall in your investment decisions and try to spot the best opportunities for mid-long term gains. The above are simply guidelines to help newbies who may not yet understand the crypto markets and want to find a trading strategy that meets the philosophy they most agree with.
It's best not to stick too rigidly to any one investment strategy but try to find what works best for yourself as you play on the crypto markets.
More at @isohero
