60/40 Strategy: Ride the Bull, Buy the Dip, Sleep at Night

How smart investors take profits — and re-enter without stress.

If you’ve ever sold too early…

Or held too long and round-tripped gains back to zero…

Don’t punish yourself - this is the no.1 mistake we all keep repeating.

Luckily, there is a simple strategy that can help.

The 60/40 Portfolio is the crypto version of the classic “stocks/bonds” structure.

But here, it’s crypto + stablecoins (cash) — and it’s designed to help us ride bull markets and buy the dips with confidence.

⚙️ How It Works

This strategy uses the same logic that traditional finance has used for decades, simply applied to a slightly more volatile market.

It’s structured, boring, and effective.

📊 What the Portfolio Looks Like

60% Crypto:

• Could be 100% BTC

• Or split between BTC, ETH, SOL, or other blue chips

• (Some clients even apply the Balanced Strategy we’ll dive into next week)

40% Stablecoins:

• Can earn 10%+ yield via CeFi/DeFi

• Gives dry powder to buy major corrections

• Provides emotional safety — “I already took some profit”

🧠 Why It Works

Simple and effective way to rebalance, plus keeps emotions in check:

1. When crypto pumps, I trim back to 60% → I keep taking profits as the market rises.

2. When markets crash, I rotate back in → I keep buying the dips as the market crashes.

🔁 Example in Practice

• In a bull run, my crypto side grows to 80% of my portfolio

• I rebalance → take 20% profits into stables (back to 60/40).

• Market crashes → my crypto side drops to 50%.

• I rebalance again → deploy stables and buy the dip.

Repeat every quarter or based on market triggers (e.g., when Fear & Greed Index hits extremes).

✅ The Good

• Reduced volatility

• Creates a “cash reserve” to buy dips

• Forces me to take profits without emotions

• Helps avoid holding altcoins down 80–90% during corrections

It removes the guesswork of “Should I sell now?” — and replaces it with a plan.

❌ The Ugly

• Higher complexity than BTC only

• Opportunity cost if the market goes bananas

• Taking profits during a bull market craze is one of the hardest things an investor can do.

Yet, this is one of my favorite approaches.

🧠 Why I Love This Strategy

It’s not about chasing max returns — it’s about making our gains real.

Why celebrate 10x on an altcoin when we don’t sell and just watch it bleed to 0?

It gives us structure in a market that thrives on chaos, volatility, and liquidations.

I’ve seen this strategy bring peace of mind to clients with $1K or $1M.

The only complexity lies in finding the right balance for:

1. The ratio of cash to crypto (e.g., can be 80/20),

2. What to put in the crypto bucket (BTC only? Blue chips? …)

🛠️ Tools to Use

• Portfolio trackers → DeBank for Ethereum ecosystem, Jupiter for Solana.

  • Alternatively: CoinStats, CoinGecko, or CoinMarketCap for visual portfolio

• DeFiLlama Yields or Summer.fi for earning passive income on stablecoins

  • Be careful! DeFi is extremely risky for beginners. Learn before entering the space or stay on exchanges (Binance, Coinbase, …).

• Google Sheets + reminders for manual rebalancing

Bonus: You can check my tracker in Web3 Tools & Resources.

Next Week:

We’ll wrap the series with the Balanced Strategy — a more active approach for investors who want to rotate between fundamentals and trends.

👉 Want to skip the learning curve and build your crypto plan 1-on-1? Book a private consultation here.

– Matt