My 70/25/5 Crypto Framework

Last week, we discussed that investing in crypto isn’t just about picking the right assets —> it’s about structuring our portfolio strategically to balance growth, stability, and risk.

That’s when we introduced the Balanced Strategy.

Today, we will dive deeper into how I approach it.

📊 The Allocation

• 70% Core

• 25% Sector Leaders

• 5% Risky Bets

Each bucket has a clear purpose — and helps avoid overexposure without missing the upside.

Let’s break it down.

🔵 70% Core: Long-Term Stability

This is the foundation.

Assets with strong adoption, deep liquidity, and institutional backing.

🔹 Bitcoin (BTC): Digital gold, store of value, inflation hedge.

🔹 Ethereum (ETH): The foundation of DeFi, NFTs, and Web3.

🔹 Solana (SOL): High-speed blockchain with growing adoption in Memes, AI, and e-commerce.

The goal is to reduce volatility while compounding long-term growth.

Why? This cycle, Solana did 30x, BTC did 7x…

In crypto, it’s not about the upside; it’s about risk management.

🟠 25% Sector Leaders: Growth & Innovation

This allocation is for high-growth assets with strong fundamentals.

These projects have the potential to become core assets in the future.

🔹 Chainlink (LINK): Leading Oracle network providing real-world data to blockchain applications.

🔹 Aave (AAVE): A top DeFi lending protocol with real-world adoption and billions in total locked value.

🔹 Hyperliquid (HYPE): Fast, decentralized exchange, with deep liquidity, revenues, and focus on advanced trading.

These assets outperform in bull markets while offering some conviction that they can survive the bear market.

They are sector leaders with clear use cases and adoption, often with product-market fit.

This is where we grow our conviction through cycles.

Side note: Meme coins can be part of this allocation, but only the sector leaders (Doge, Pepe, Bonk). That way, we are betting on the “meme coins” sector and that people will gamble. It’s a risky bet, though, so be careful.

🔴 5% Risky Bets: Asymmetric Upside Plays

This is the high-risk, high-reward allocation → smaller projects with the potential to 10x—100x, but also much higher volatility and risk.

Examples:

🔹GameFi & Metaverse – Studios and infrastructure like Immutable X, Gala, or Superverse.

🔹AI + Crypto – Decentralized AI projects like Bittensor or Render, gamble platforms like Virtuals, etc.

🔹New DeFi and Real-World Asset Tokenization – Protocols that bring off-chain assets onto blockchain, such as Ondo or Ethena.

This is the fun part of our portfolio where we can play with the different narratives and speculation.

• If it works, even 5% can significantly boost our portfolio.

• If it doesn’t, at least we are not overexposed.

I would still limit the risk by sticking to a category I understand better, or by focusing on some high-conviction plays, rather than blindly jumping across different narratives.

Important: Take. Out. Profits! If one of these hits a 10x, you rebalance gains back into your core.

📈 Why Does It Work?

The biggest upside is the risk management.

We allocate 70% to Core and 25% to high-conviction sector leaders.

That’s 95% of our crypto portfolio in solid projects, not some strangely looking altcoins with no product or future.

And the best thing?

Blue-chip assets tend to compound over time.

It’s about being in the market as long as possible.

💡What Did I Miss?

If you followed my last email, you may wonder where stablecoins fit into this equation (good catch!).

I combine this strategy with the 60/40 approach and rebalance based on market conditions.

What does it mean?

I split my crypto portfolio into two buckets:

1. 0-25% is in stablecoins;

2. The rest goes into the crypto bucket.

And my crypto bucket follows the 70/25/5 Framework.

🧠Final Thoughts

Crypto isn’t about going all in — it’s about going in intelligently.

And structure is the edge most investors lack.

The 70/25/5 framework gives a system, so we're not guessing every week.

This is how HNWIs and funds approach crypto.

Not “what coin should I buy today?”

But “how do I structure this portfolio for the next 5+ years?”

Still, it’s difficult to find the right project.

We will cover how to evaluate a crypto project in some future edition of this newsletter.

If you'd like to speed it up, simply reply to this newsletter, and I’ll prioritize your request.

Or you can jump into my Masterclass to see exactly how I approach it.

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

– Matt