I was wondering how to do you size your portfolio – should I be putting most of my money in $LUNA and only allocate a certain % for these tokens?
I don’t think there are any guidelines for this, it is based on your risk tolerance! And everyone does things differently!
Having a comfortable portfolio will help you grow your money and have a good sleep. If the things you invest in are too risky for you then you will have a hard time sleeping also.
Personally, I am investing outside of crypto also, so my full investment portfolio exists more than crypto. If my full investment is in crypto I might allocate it differently also.
Large cap: > $10b
Mid cap: $1b to $10b
Small cap: < $1b
You can check token price and their market cap at https://coinmarketcap.com/
Here’s a few general rule of thumb:
- 1) The larger the cap, the lesser the risk. Think of it as bluechip.
- 2) Higher risk, higher return.
Here is an example of a lower risk crypto portfolio:
- 20% BTC
- 30% ETH
- 20% Large Caps
- 20% Mid Caps
- 10% Small Caps
Here is an example of a higher risk crypto portfolio:
- 10% BTC
- 10% ETH
- 40% Mid Caps
- 20% Low Caps
- 10% NFTs
What is most important is to have conviction in the things you invest in!
You can add on to this in the comments below.