How we split a crypto portfolio — by conviction.
A guide, not a prescription. Tilt the weights to your risk tolerance, but keep the structure: high conviction at the core, satellites for asymmetric upside, dry powder for the dip you can't time.
Bitcoin
CoreThe reserve asset. Highest conviction, lowest tail risk among crypto. The anchor everything else is sized against.
Layer-1s
Layer-1s and settlement networks with real users. Diversifies the core without leaving the top of the market-cap table.
DeFi
Protocols that move real volume — DEXs, lending, oracles. Cyclical, but where most of the upside lives in a bull.
Metaverse & compute
Render networks, on-chain compute, gaming infrastructure. Higher beta — sized accordingly.
Memes
LotteryTreat as expense, not investment. Two percent buys you a seat at the table without putting the portfolio at risk.
Dry powder
StableStablecoins, parked and patient. The reason you can buy aggressively when everyone else is scared.
How to use this framework
- Anchor first. Size everything else as a multiple or fraction of your Bitcoin position. The core sets the risk budget.
- Satellites earn their weight. Large-caps, DeFi, and compute should each pass a written thesis before they take a slot.
- Memes are an expense line. Capped, accepted as lost, never averaged down into.
- Dry powder is a position. Stablecoins exist so you can buy fear, not because you're undecided.
- Rebalance on thesis change, not on price. Price moves are an opportunity to trim, not a reason to reshape the framework.
The framework is the floor, not the ceiling. Adjust the weights to your risk profile — but keep the structure intact.
View the position sizing template