How much crypto as a % should I allocate to my overall portfolio/net worth? How much of a crypto portfolio should be allocated to BTC?

Category: Investing & Trading

There is no simple answer or %, it depends entirely on your own personal situation and risk tolerance. For example, many people choose to have 100% of their portfolio in BTC, or someone might have a very high-risk tolerance and choose to allocate a greater % to riskier investments. To minimise risk, many investors choose to only allocate a small % (1%) on ‘altcoins’ (i.e. coins that aren’t BTC).

It may also be useful to think about what you would do if the allocation in a specific altcoin went to 0. Given the volatility of cryptocurrencies, this is certainly a reasonable outcome. How would you feel? Only invest capital that you’re prepared to lose.