The Balanced Crypto Strategy

Most investors either stick to BTC or jump right into risky altcoins without knowing much about them.

They treat these bets like stock investing.

Just like buying a few shares of Microsoft or Nvidia.

That’s not the game.

Altcoins are like the riskiest pink sheets we can find.

That’s the new vertical mobility startup that someone mentioned in your favorite YouTube/TikTok channel.

These can go baloney, for sure, but usually they just don’t.

The Balanced Strategy lets you play the long game, ride momentum, and avoid similar portfolio-killing overexposure.

⚙️ How It Works

The aim is to find the right balance between different crypto buckets.

• The core assets (BTC, ETH, SOL)

• The category leaders (Chainlink, Aave, Hyperliquid, …)

• And some room for speculation (AI, meme coins, DePIN, etc.)

Each investor has different risk tolerance and different ideas.

However, the core idea remains —> build a solid foundation first, before betting on anything else.

That means allocation to core assets (or BTC only) should be at least 50%.

📊 Example Allocation: 50/20/30

• 50% Core

  BTC, ETH, SOL — the “blue chips” of crypto

• 20% Stablecoins

  For buying dips or earning yield

• 30% Altcoin Narratives

  Higher-risk, higher-reward plays (AI, DePIN, RWAs, gaming, metaverse, etc.)

This is not a bad start. Keep us grounded in the Core, we maintain a cash reserve for the dips, and we have room to grow with high altcoin exposure.

Pro Tip: Always leave room for stablecoins.

🔜 But There’s Another Version: My 70/25/5 Framework

In next week’s post, I’ll break down my personal version of the Balanced Strategy:

• 70% Core (BTC, ETH, SOL)

• 25% Sector Leaders (LINK, Aave, Hyperliquid, etc.)

• 5% Risky Bets (memes, AI, DePIN)

It’s the structure I use with my portfolio.

You’ll get the exact checklist I use to build it next week.

✅ The Good

• Sector exposure

• Can work as a crypto index

• Potential to outperform the market

• Solid foundation to reduce volatility

Solid foundation with a few 100x potential bets.

❌ The Ugly

• Complex - research, due diligence, and need to manage a crypto portfolio

• High Risk - most tokens go down only

• “Altseason” dependent

A lot of struggle for serious investors only.

And even they often struggle to beat BTC.

🛠️ Tools I Use to Track This

• DeBank, Jupiter — track individual wallet allocations

  • Artemis Google Sheets — to track the whole portfolio allocation over time

• Messari, DefiLlama, Dune — research narratives and leaders

Bonus: You can check my list of Web3 Tools & Resources.

🧠 Final Thoughts

This strategy has the potential to beat the market.

However, it is very challenging to build and maintain.

Plus, most of the altcoins have high inflation and would outperform only during the short period of a crazy market called “Altseason”.

So… Most investors would do better if they stick to the Core assets only and start taking out profits and rebalancing with stablecoins.

After that, exploring the space - DeFi (especially), Airdrops, or private/public sales, could yield higher rewards than trying to find the next Bitcoin.

Boring is good in crypto.

Next Week:

I’ll share the full breakdown of my 70/25/5 Portfolio Framework — so you can build a balanced strategy with clear rules.

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

– Matt