r/investing
how do you all think about adding crypto to a broader investment portfolio
User seeks advice on crypto allocation strategies within a diversified portfolio, focusing on sizing and management methods.
not asking whether crypto is good or bad, i know that debate never ends here. more curious about allocation strategy. like do you treat it as a small speculative slice or do you actually have meaningful exposure. and do you use any kind of automated strategy to manage the crypto portion or just hold.
Do you like losing money?
Make it no more than 5-10% of your port
Been there, done that. Would have been wise to allocate more, but that’s hindsight. I’d at least avoid rebalancing if I’d allocate again today (which I don’t). But I do so for gold. Price of gold doesn’t affect my initial allocation and doesn’t cause me to reallocate. Just plays its own role completely
Small slice
I personally use 2.5% BTC and 2.5% gold
The rest, stocks and bonds
And just rebalance more or less once a year
Dude. Bitcoin does not pay any dividend. You can’t do a dcf analysis with it.
You finally got there! That was the joke I was making in support of your post.
Well. It’s Reddit. I thought you were being serious. 👍🏻
I treat it like venture capital. If it goes to zero, my retirement plan doesn't change. If it works, it can move the needle.
🤣🤣
I also treat lottery tickets as venture capital
Cool…love me those btc dividends…show me the numbers and how you are putting this together.
Great time to get in
Is it? How do you come to that conclusion? What constitutes a good time or a bad time with crypto? What should a fair market value be at any given time?
It’s cheap relative to its discounted future cash flows.
IT is a smallpercentage of my portfolio. But I don't hold it. I invest in BTCI a covered call fund that coverts price volatility to income. When it first started it had a yield of 30% right after it became available.. But the value of bitcoin dropped but it is still paying a yield of about 26%. As long it is still paying a good yield I will hold it. And I will reinvest the income into other funds.
If you want to lose money yes go for it