Is 20% crypto a bit high for whole portfolio?
Is 20% crypto a bit high for whole portfolio?
My crypto is about 20% of my whole portfolio after investing for a year. I sold some stocks last week, so the crypto portion went up. But given how volatile this market is, I’m concerned if that percentage is too high.
Most of it came from dca on bydfi over time, so it felt normal while I was building the position. What I’m thinking now is that if crypto goes through a long, sharp bear market, the rest of my portfolio probably won’t hedge it well. I also don’t plan to buy more stocks just to bring that percentage down, so I’m considering selling part of the crypto position instead.
How do you usually split your crypto allocation? Any suggestions for my situation?
All depends on the actual $ amount. I was in crypto and it went way up and I was like 95% crypto. Now I’m like 0% crypto because I made so much there is really no reason for me to own it if I can be diversified and financially free in other things like real estate and stocks. Don’t wake up every morning wondering if Im going to have to go back to work. It’s nice.
It’s all about risk tolerance, and it’s universal, you’ve decided it’s not if that’s where you’re at. Personally, I’m actually higher than that, even though when I started my aim was no more than 10%. However, understanding much more now than I did years ago, means my risk tolerance grew. Therefore, the simple answer from my point of view is no, it’s not. Yet many with a low risk tolerance, and perhaps new at this game we’re all playing, will say yes, it is!
