Ben Simpson presents a simple crypto portfolio allocation framework tailored to three risk appetites. For low risk he recommends 100% Bitcoin (buy-and-hold); for medium risk he suggests ~75% Bitcoin with allocations to layer-one blockchains and a small speculative slice; for high risk he suggests around 50% Bitcoin with larger allocations to layer-ones, DeFi/meme coins and using stablecoins for trading. The emphasis is on keeping allocations simple and using Bitcoin allocation as the primary risk dial.
Chapters
Here is a simple crypto portfolio allocation for low, medium and high investors. I'm going to share with you based on your risk appetite and how you want to get started in crypto. Now the first one is your low risk appetite. I would literally just stick to 100% bitcoin if you just want to set and forget and not have to worry about what your crypto portfolio is doing. I have seen some investors make a lot of money just by buying and holding bitcoin. So many people over complicate it. Literally. Buy some bitcoin, leave it alone, forget about it. This thing is compounding at nearly 100% per year of over the last few years. You are going to do really well and not have to touch it in your low risk, your medium risk. I would reduce the bitcoin allocation to somewhere about maybe let's say 75% Bitcoin. This is where I currently sit in my portfolio, somewhere around here. This is where again you want to have majority in your bitcoin portfolio and then allocate the rest of different sectors. Now the big one for me is layer ones. Layer ones is where I'm allocating a lot of money. This is the web3 blockchain level. It's the highway. It's your ethereum sui salana. A lot of great investments going into layer one space. And then the final bit here, this is where you're going to add some higher risk. It could be defi. It could be, you know, it could be meme coins, whatever it is. This is that little sector that we can have a little bit more speculation for your high risk portfolio. This is where you're going to have a little bit more risk. Maybe you want to split it down the middle and have 50% bitcoin, right? And then the rest are going to split across different layer ones. Defined coins. I might play with a few different things. You may want to have some stable coins handy to do some different high risk stuff. But again, the amount of bitcoin, for me, that is the indicator for how much risk you want to take in crypto. Keep it simple.
