Never allocate more than 2–5% of your portfolio to any single crypto. If Bitcoin is your conviction play, cap it at 5%. Ethereum at 3%. Altcoins at 1–2%. This sizing ensures a 20% crypto crash hurts your portfolio but doesn't destroy it.
If Bitcoin rallies from $63K to $65K, set a trailing stop at $64K (1% below entry). Locks in half the gain while keeping upside. If crypto crashes through the stop, you exit with profit, not loss. Use exchange features or manual orders; don't hope for a bounce.
Before major macro events, park 10–20% of your portfolio in USDC or USDT (stablecoins earning yield on Aave or Compound). If crypto crashes, you have ammunition to buy the dip. If crypto rallies, you can rotate back in. Flexibility is your edge.
Crypto allocation should be 10–15% of total portfolio (60% stocks, 30% bonds, 10% crypto is a common split). This ensures that even a 50% crypto crash doesn't blow up your wealth. Focus your energy on the 60% in equities, not the 10% in crypto.
Post-CPI (August 12), rebalance your portfolio back to target allocation. If crypto crashed, buy the dip using your dry powder. If crypto rallied, trim winners back to 5% allocation. This discipline beats timing or guessing. The scoreboard is rebalancing.
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