Best Crypto Portfolio Allocation Strategy and Breakdown 2022

crypto portfolio allocation and management

In this guide, we will teach you how to think regarding creating the best crypto portfolio allocation strategy and management 2022.

We will not be able to tell you how to perfectly allocate your own portfolio since it depends on so many different things.

However, we will tell you how we have allocated our portfolio based on our management principles based on risk management and diversification. In the end we have a our own crypto portfolio allocation breakdown.

There are two main rules we follow, according to us

Portfolio Allocation Rules

  1. Look for the best interest rates (But still offered from well-known and safe companies with a track history). Read more about licensed and safe crypto interest accounts with insurance.
  2. Diversify your crypto investments and never put all eggs in the same basket.

1. Look for the best Crypto Interest Rates

Always look for the best crypto interest rates and staking rewards opportunities and go with them.

Reevaluate continuously and be careful with new companies with no track history. Search for reviews online and on Youtube. Make sure to understand if the reviewer gets affiliate commissions and have an economic incitement to promote the company.


Be careful with Crypto Scams

Don’t get fool by a scam that guarantees you super-high profit. Read about the investment opportunity on several sites and forums before you deposit your capital into any platform.

If you are unsure, ask on a forum like Bitcointalk or on Quora and evaluate your answers.

Never chance on a platform because there are so many legit and good companies out there offering great services and investment opportunities. You don’t have to chance, cryptocurrencies and crypto-related companies are so matured that you don’t have to take any big chances anymore.

2. Diversify your Crypto Investments

Always diversify your crypto investments. There are three different dimensions of diversifying a crypto portfolio to minimize your risk.


3 Dimensions of diversifying a crypto portfolio

  1. Buy at least Bitcoin BTC and Ethereum ETH to hold in your portfolio. These are the two cryptocurrencies with least risk and they still solve 2 completely different problems.
  2. Hold your cryptocurrencies in more than just 1 platform. Any platform can fail for many different reasons. Diversify your investment. However, this doesnt make sense if your investment is very small.
  3. Diversify over time. Don’t buy crypto at only 1 occasion. Instead, buy for a small portion every month or every 3th month.

Can I overdiversify my crypto investments?

Yes, you can.

Go back to our first statement. Only go with the best interest rates opportunities.

If you over over-diversify, you will definitely hit a certain number of scams and legit companies that fail.

That’s why it’s so important to do some basic research and also reevaluate all the time on a continuous basis.

Our crypto portfolio allocation History

We started to invest in crypto passive income in 2013. At this point, there were no interest accounts on the market.

Or actually, there were some scams promising 0.1% return per day or similar scam payout schedules.

We invested a lot in cloud mining at this point. However, cloud mining turned out to be hard to predict the actual outcome and we stopped focusing on investing in cloud mining.

We went on with margin funding on Poloniex and Bitfinex which turned out to be a quite good profit. However, the interest rates were very volatile and you had to put a lot of effort into handling the process. The investment was not really passive. 

Our crypto portfolio allocation for passive income 2022

Finally, we are about to present our crypto portfolio allocation for passive income.

We just want to remind our readers that there is no 100% safe investment in the world. Such an investment would yield a 0% return on invested capital.

We have tried all our listed products and in the table you can find the ones we currently use.