Hold a 60–70% core position (Bitcoin + Ethereum) untouched throughout the bear. Use only 30–40% satellite allocation for tactical entry/exit. This preserves conviction while allowing tactical rebalancing without full portfolio churn.
Dollar-cost averaging (buying fixed amounts weekly or monthly) outperforms lump-sum entry in bear markets. If Bitcoin bottoms 40% lower, consistent monthly buys capture more coins at lower cost than one $10K entry now.
Small-cap and mid-cap altcoins fall 60–80% during bear market capitulation while Bitcoin falls 30–40%. If your satellite allocation is altcoin-heavy, trim to 10–15% of portfolio to avoid permanent losses on weak projects.
In India and most Western jurisdictions, crypto losses can offset other capital gains. Sell underwater positions for tax loss harvesting while holding core Bitcoin/Ethereum winners. This cuts your tax bill and rebalances simultaneously.
If your core (Bitcoin + Ethereum) hasn't changed allocation by more than 15% since the bull market peak, your portfolio is already rebalanced. Adding to weakness without selling winners keeps conviction intact and avoids tax friction.
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