25% Formula for Investment in Crypto Portfolio

Cryptocurrency dip has been going on lately and a lot of people are losing the money. Most of us creators and the bloggers earn the crypto for our efforts in writing and the blogs. So we tend to worry less about the loss than most.

However the losses are real and it's always a good idea to reduce them over a period of time by diversifying.

You can invest small into multiple places and reduce your risk. All your baskets can go down only when the world has been suffering.

I am following the 25 percent rule for diversifying my real world assets. Except real estate I am invested into many other asset instruments.

I am going to follow the same approach inside the crypto portfolio too. So here's my allocation for the funds divided into multiple places.

Let's discuss the 25% formula for investment in cryptocurrency.

So let's assume that you have like 100 dollars to invest into the crypto. How would you go on dividing the money and how would go on managing the funds. So I have made division into multiple places.

Stable Coins : 25%

What if you find yourself in dip and struggling to find value for your coins? In such case putting your coins on regular basis in the stablecoin helps.

This way even if the market continues to decline and you want funds for something emergency. That's where the stablecoin helps.

Where to invest: TerraUST, Binance USD (BUSD)

*There is an option to use FlexUSD but I personally prefer to have stablecoins where my exchanger or p2p exists. Unfortunately none of them accept FlexUSD.

You can also invest into other stablecoins, I am not pushing or shiling my favorite. I am just writing about what I know but if you can know better go for your own options.

Staked Coins : 25%

It always helps when you stake some coins and earn some rewards. I know many who are staking their Ethereum based tokens and the coins in other pool. And they earn reward on the same.

This is a good strategy and you can think of it like a bank deposit which used to pay for the idle money in exchange for the fixed deposit.

This is something that has been going on with many staked option on the market.

Where to Invest: Terra, Avex, Polygon, Ethereum

Find which percent rate you would like for the staked coins. And against which coin it is better. Don't go for my recommendation, those things can change.

Utility Coins : 25%

Some coins don't have high holding value. They tend to do better with the investment into the sources like NEXO and the Celsius.

I call them utility coins. They are in between the hold and the spending.

Like say Bitcoin cash it's a good utility coin. And it works better if you use it for everyday transaction and also hodl it when and how you want.

Take same example of similar other utility coins like Cardano. Using them and staking or even putting them into NEXO and the Celsius like places helps a lot.

Where to Invest: Bitcoin Cash, Cardano, Solana, SmartBCH

Find value and start investing into these coins. More you invest the more cashflow in these coins start and would eventually helps the overall portfolio to balance.

Hodl Coins : 25%

Some coins are like ace of spade and they are meant to hodl until you really need to spend them for super emergency.

Hold such coins as long as possible or until they become 1 USD or dollar or pound or whichever coin value that you would be in use locally.

Where to Invest: Bitcoin, Ethereum

These two giants are long term hodl worthy. Use them only when you want to buy house, get married, settle debt, pay for bribe or ransome lol. You get the idea.

You have this option meant to be used only when there is emergency till then just invest and forget them.

Over to You, What do you think?

Is this a good strategy to invest? Do you think 25 percent is a good diversification and way to manage the funds? I personally feel like this approach is a good option but you never know.

What's your opinion?