Standard
This model is a standard approach with no emphasis on any particular subcategory of crypto.
As should be the case for most crypto portfolios, BTC and ETH occupy a considerable amount of the overall exposure. They are the safest, most liquid crypto assets and should be kept close to half of your total portfolio's exposure to maintain stability and limit extreme volatility.
Other Layer 1 protocols can be thought of as hedges to BTC and ETH in the event any rising projects steal market share from either of the two.
Layer 2 assets could be an essential component to the future of certain Layer 1 protocols, but they remain quite speculative and thus exposure is minimal.
Privacy coins are becoming more relevant as people recognize some of the transparency-related concerns around public ledger technology. Many of these assets are extremely volatile, but exposure to the top two offers significant upside potential.
Many altcoins are speculative nightmares, but there is a lot of meaningful innovation that warrants some degree of exposure. The space is constantly evolving, but dedicating 1% to a handful of promising projects is advised for most crypto portfolios.
The world is in a secular trend toward an increasingly digitized society and the metaverse could be a very popular and lucrative area of crypto. While still very early, a small allocation to the top projects is recommended.
Though meme coins/social tokens lack fundamental value, there is no escaping the power of social groups ascribing value and driving up price. Community coins and tokens could play a big role in the future economy, so dedicating a very small amount of your portfolio to 'fun' assets offers a good risk-to-reward.
Category Allocations
BTC - 25%
ETH - 20%
Layer 1 - 32%
Layer 2 - 5%
Altcoins - 5%
Privacy - 5%
Metaverse - 5%
Meme/Social - 5%
Asset Allocations
BTC - 25% (Layer 1)
ETH - 20% (Layer 1)
SOL - 5% (Layer 1)
BNB - 5% (Layer 1)
XRP- 4% (Layer 1)
ADA - 4% (Layer 1)
DOT - 4% (Layer 1)
AVAX - 4% (Layer 1)
NEAR - 3% (Layer 1)
ATOM - 3% (Layer 1)
MATIC - 3% (Layer 2)
STX - 2% (Layer 2)
XMR - 3% (Privacy)
ZEC- 2% (Privacy)
VET - 1% (Altcoins)
FIL - 1% (Altcoins)
AUDIO - 1% (Altcoins)
LINK - 1% (Altcoins)
AXS - 1% (Altcoins)
MANA - 3% (Metaverse)
SAND - 2% (Metaverse)
DOGE - 2% (Meme/Social)
SHIB - 1% (Meme/Social)
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*All portfolio allocations illustrated or discussed, whether depicting asset classifications, categories, subcategories, or any specific asset, are for informational and educational purposes only. This is not investment advice.*
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