Crypto Portfolio Allocation Guide

Asset Allocation & Investment Strategies Explained

Asset Allocation

Asset allocation is the process of adjusting the percentage allocated to different types of crypto assets which may help weather the ups and downs of the crypto market. We have grouped crypto asset types into two categories, protective and growth assets. We classify protective assets as interest earning stablecoins. Growth assets will be explained in investment strategies.

Sample asset allocation based on different risk profiles:

1. Conservative Risk
Asset Allocation: Protective (70%), Growth Assets (30%) 

Investor Profile: Conservative investors take the least amount of risk and prefer stability. The primary goal is capital preservation; they need the money soon or might be close to achieving their goals. This means they don’t need the additional risk. These investors normally have a larger allocation toward interest-earning stablecoins.

2. Moderate Risk
Asset Allocation: Protective (50%), Growth Assets (50%) 

Investor Profile: Balanced or moderate risk investors are comparatively more risk-tolerant when compared to conservative investors. They are willing to take on more risk for higher returns. Their portfolio is generally divided between safer positions like stablecoins and slightly greater exposure to top 10 cryptocurrencies like Bitcoin and Ethereum. They have some experience, looking for moderate growth, and diversification, and are willing to tolerate some market volatility.

3. Aggressive Risk
Asset Allocation: Protective (15%), Growth Assets (85%)

Investor Profile: These investors are huge risk takes who are looking to maximize the growth potential in their portfolio. They are highly knowledgeable and are comfortable seeing significant movements in their portfolios to get greater returns. They can also have exposure to a wide variety of coins and tokens.

Investment Strategies

After you have chosen your asset allocation based on your risk tolerance, the selection of investment strategies is key to building a diversified crypto portfolio. We classify the following 2 strategies as growth assets: Market capitalization (blue chip, large cap to small cap), investment trends & theme. Check out our crypto portfolio building guide to learn more about these strategies.


Though this is generally perceived to be a smart approach, asset allocation and diversification do not guarantee profits or ensure against losses in a declining market. This information is intended for illustrative purposes only. This is not intended as investment advice. Investing involves risk, including possible loss of principal.