Guide: Crypto Portfolio Allocation and Management

crypto portfolio allocation and management

In this guide, we will teach you how to think regarding crypto portfolio allocation and management.

We will not be able 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.

There are two main rules we follow.

  1. Look for the best opportunities
  2. Diversify your investments and never put all eggs in the same basket

Look for the best opportunities

Always look for the best investment opportunities and go with them.

Reevaluate continuously.

Dont 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 asnwers.

Never chance on a platform because there are so many legit and good companies out there offering great services and investment opportunities. You dont have to chance, cryptocurrencies and crypto-related companies are so matured that you dont have to take any big chances anymore.

Diversify and never putt all your eggs in the same basket

Always diversify.

This is extra important if you have a considerable amount invested in one platform or one cryptocurrency.

Always ask yourself, how much would I lose if this investment just disappear?


Can I overdiversify my crypto investments?

Yes, you can.

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

If you 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

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 invested in the following 

  1. BlockFi interest account
  2. Nexo interest account
  3. Celsius interest account
  4. Earn (Interest account)
  5. YouHodler interest account
  6. Uniswap liquidity provider
  7. Binance staking
  8. Binance saving for BNB
  9. Kraken staking


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