(Tweet by **The DeFi Edge 🗡)**
https://twitter.com/thedefiedge/status/1508475727552811009?s=20&t=Q9-uuHggkWGuY_HB_IFDCg
Most people suck at building a Crypto Portfolio.They're too aggressive & get wrecked.or they playing it too safe and leaving $ on the table.Here's how to build a solid Crypto Portfolio in 2022:(+ my personal portfolio recommendation)
Portfolio GoalsYour goal is to↓ Lower Risks↑ Increase Rewards(While sticking to YOUR risk tolerance, goals, and your timeline)There's no perfect portfolio.I'm going to include some theory + examples, and you have to think about what works for YOU.
Constructing a Team
Building a portfolio is kinda like constructing a sports team.
Imagine if your team was ONLY Goalies - too much defense and no offense!
Each position in your portfolio has a different role.
Some defend (stablecoins) and are scorers (higher risk)
The Role of Each ClassStablecoins: Preserves capital & serves as ammo to buy dips.Blue chips: Long-term growth. Long-term hold.Medium Risk: A nice balance.High Risk: Your 10-100x plays. Make sure that you take profits.Let us look at some sample portfolios:
/1 The BTC / ETH SplitFor people who want Crypto exposure, but don't want to go down the rabbit hole.It's safe and simple.
/2 The Barbell Strategy 🏋️You go to both extremes of the risk curve while avoiding the middle.• 50% safest assets.• 50% high-risk plays.• 0% medium risk.Made famous by Nassim Taleb, though he'd throw a tantrum if he saw someone apply this to Crypto.
/3 The 50/25/25• 50% BTC (or replace with ETH)• 25% Low Risk• 25% Medium Risk / ShitcoinsThis is a solid portfolio.It's on the safer side while giving you enough wiggle room to get your shitcoin fix.