Cryptocurrencies have earned a reputation as by far the most profitable asset class of the last century.
Thanks to the meteoric success of Bitcoin, Ethereum, Shiba Inu, and dozens of other groundbreaking crypto assets, more people than ever before are beginning to dive into the space and begin researching crypto portfolio management.
But in order to determine the best crypto portfolio allocation for you, you are going to need a basic understanding of crypto asset allocation, management, risk segregation, and opportunity identification.
In this guide, we’ll help you achieve just that, helping you stay safe and maximize your odds of success when speculating on cryptocurrencies.
Our Picks for the Best Crypto Portfolio Allocation for 2024
We sifted through the more than 10,000 cryptocurrencies in existence to find five of the very best for your portfolio.
Each of the projects listed below has demonstrated strength in 2024 and has impressive fundamentals — giving them an excellent chance of achieving long-term success.
1. Tamadoge – The Best Crypto for a Diverse Portfolio
Every now and then, a crypto project comes along with the potential to deliver the benefits of blockchain technology to a mainstream audience. In 2022, that project is Tamadoge.
Tamadoge is an innovative new project that combines blockchain gaming, the metaverse, meme coins, and non-fungible tokens (NFTs). The platform is creating a ‘Tamaverse’ of products where users can mint, breed, battle, and use their own NFT creatures — called Tamadoge pets.
In the coming months, Tamadoge is set to unveil a range of addictive and rewarding arcade games which will provide players with both physical and digital rewards. The platform is designed to blend the extraordinary growth of meme coins with the disruptive potential of blockchain gaming to build an entirely new crypto phenomenon.
Unlike many meme coins, the Tamadoge token (TAMA) features aggressively deflationary tokenomics. A whopping 50% of the total supply (1 billion tokens) is being sold through the presale — all of which will be unlocked at the token generation event (TGE). From there, 5% of each TAMA transaction will be burned, rapidly shrinking the circulating supply and driving up demand.
Since Tamadoge incorporates many of this year’s most hyped niches and has already demonstrated rampant demand in its almost sold-out presale, it can be considered a must-buy for anybody looking to build the best crypto portfolio allocation.
With more than $13.5 million already raised in its presale, the ambitious project is now close to selling out with less than 20% of the presale allocation remaining. This is now the last chance to participate before it launches on public exchanges — potentially at a much higher price.
2. Battle Infinity – The Future of Play-to-Earn
As one of the most hyped projects in 2022, Battle Infinity has been kicking up quite the stir in crypto circles thanks to its disruptive potential.
The platform takes the fundamentals of what made games like Axie Infinity and Splinterlands so popular but then supercharges it with an entire ecosystem of play-to-earn and NFT-enabled products. This includes a powerful decentralized exchange that allows users to buy IBAT and exchange it for other assets, as well as a marketplace for tokenized digital goods.
Battle Infinity will feature an expansive metaverse world known as the Battle Arena within which players will be able to access some of the best play-to-earn games. The first of these games is IBAT Premier League — an NFT-based fantasy sports game that rewards players with IBAT tokens for building and battling with their fantasy sports team.
The innovative new play-to-earn ecosystem will place a heavy emphasis on non-fungible tokens (NFTs), which players can buy, collect, earn, and use as part of their gameplay. Some of these NFTs may go on to become incredibly rare and sought-after — making them attractive investments in their own right.
External publishers will be able to integrate their games with the Battle Arena, unlocking new opportunities for players and IBAT token holders, while providing additional utility for NFT holders. These developers will be able to easily monetize their games through the Battle Infinity Global Stake Pool, game asset sales, and more, helping the Battle Infinity ecosystem expand quickly.
Battle Infinity is unusual among blockchain projects in that it is targeting a more mainstream audience. The IBAT token is already available to buy on both LBank and PancakeSwap, and has a market cap of $40 million, and is set to land on more popular exchanges in Q4 2022 — further expanding availability.
3. Polkadot – The King of Interoperability Platforms
Arguably one of the most ambitious blockchain platforms ever devised, Polkadot aims to resolve one of the longest-standing challenges in the blockchain space — cross-chain communication.
As a ‘layer-0’ platform, Polkadot is designed to sit below the level of layer-1 chains like Ethereum, Cardano, and Bitcoin, and connect them all together using technologies like XCM (a cross-chain communication standard), two-way bridges, and XCMP (Cross-Chain Message Passing).
This allows the bidirectional exchange of both data and tokens across practically any independent blockchain or Polkadot parachain — a type of blockchain built on the Substrate framework and connected to the Polkadot Relay Chain. In short, it lets blockchains securely communicate with one another.
Investors deciding on their crypto asset allocation often choose to include at least one layer-0 project in their portfolio, since it is widely believed that interoperability will be crucial to the continued growth and success of the blockchain industry.
After reaching a peak price of almost $50 in November 2021, DOT is now trading at just over $7.80 — equivalent to a decline of 85%. This represents an excellent entry point for long-term investors that believe in an interoperable blockchain future.
4. NEAR Protocol – An Ambitious New Layer 1 Platform
Smart contract platforms are an essential part of the blockchain ecosystem — being used to power popular decentralized applications like Uniswap, OpenSea, Compound, and thousands more.
But Ethereum, the dominant platform, currently faces a number of issues, including slow transaction speeds, expensive fees, and high energy usage (until The Merge).
To address this a number of competing platforms have appeared. With NEAR being among the newest and most promising.
Described as an “eco-friendly” smart contract platform, NEAR is certified carbon neutral and uses just a fraction of the energy of competing platforms thanks to its energy-efficient Proof-of-Stake consensus system. This makes it more than 200,000x more efficient than Bitcoin.
It also solves the scalability dilemma — allowing developers to produce mass-market dApps that can support potentially millions of simultaneous users. Today, the platform can process an impressive 1,000+ transactions per second, with this set to expand considerably with the introduction of sharding.
The NEAR token plays an integral role in the NEAR ecosystem, being used for paying transaction fees, smart contract operations, and on-chain storage costs. It’s also the primary reward token for both validators and stakers.
If you’re set to include a smart contract platform in your cryptocurrency portfolio allocation, NEAR protocol is one to consider.
5. XCAD Network – Pioneering the Tokenized Creator Economy
Online content consumption has skyrocketed in recent years with the meteoric success of platforms like Instagram, YouTube, and TikTok. But until recently, both the viewers and the content creators have had few to no monetization options besides the standard ad revenue share model.
XCAD Network, a platform that introduces the ‘Watch-2-Earn’ model, looks to change this by unlocking new revenue streams for creators as well as providing rewards for viewers.
It achieves this through the use of individual ‘Creator Tokens’, which onboarded creators can issue, sell, and give away to their audience. The XCAD plugin allows fans to earn these Creator Tokens by watching and engaging with the content of their favorite creators.
Users can speculate on these Creator Tokens by trading them for XCAD tokens via the XCAD Network DEX.
It also goes a step further by allowing creators to capture and sell their own NFT moments, which could represent classic moments captured from their life or content.
XCAD Network can be considered a small cap asset, meaning it has significant room for potential growth. It has already onboarded several huge YouTube personalities, including Enes Batur, Morgz, Orkun Isitmak, and more. It’s also one of the few projects to be net positive over its public sale price, recording an impressive 1,700% return for early participants.
How to Build a Well-Balanced Crypto Portfolio – Diversification Methods
The cryptocurrency industry is as wide as it is deep. This provides a huge number of opportunities for investors looking to maintain a diverse portfolio. But it also presents the challenge of sifting through the more than 10,000 cryptocurrencies to find the right ones. But for those considering an investment in BTC, just how much Bitcoin should you buy in 2024?
Fortunately, there are a handful of strategies that can be used to help you build a diverse cryptocurrency portfolio without too much headache.
Use cases and utility
Cryptocurrencies can be used for a huge array of purposes. This can include payment coins like Bitcoin (BTC) and Litecoin (BTC), governance tokens like Uniswap (UNI) and Compound (COMP), utility tokens like Tamadoge (TAMA) and Lucky Block (LBLOCK), gas tokens like Ether (ETH) and Near (NEAR), and dozens of other options.
When deciding your cryptocurrency portfolio allocation, try to spread your investments across a range of use cases. This will help you avoid the risks associated with specializing in a single asset type, while allowing you to benefit from the potential upside that can come with exposure to a wide array of use cases.
As always, try to minimize overlap between your investments, since this can leave you exposed to unnecessary risk. The only exception to this is for larger portfolios that want to include upcoming competitors to established projects.
Risk categories
Successful crypto portfolio management also entails careful risk management. This means decking your portfolio out with assets at all sides of the risk spectrum.
The 60:30:10 split typically works well for this purpose. This means you invest the bulk of your funds (~60%) in low risk, well-established projects, a smaller chunk (~30%) into medium risk assets, and the smallest fraction (~10%) into high-risk assets. This gives you exposure to the potentially incredible returns provided by high-risk assets while giving you the safety and reliability of low-to-medium risk assets.
Mapping this onto cryptocurrencies would mean deploying funds in proven, well-established cryptocurrencies for your low-risk basket, buying a range of up-and-comers (such as midcap tokens), and finally holding a smaller amount of more experimental assets (mostly small caps).
Across sectors
Ensure your crypto asset allocation accurately reflects the full diversity of the crypto landscape. Practically, this means spreading your investments across the myriad sectors now available to choose from.
Some examples sectors now include:
- Smart contract platforms: Ethereum, Cardano, NEAR, etc.
- NFTs and NFT projects: Lucky Block, ApeCoin, LooksRare, etc.
- Decentralized Finance (DeFi) tools/services: Uniswap, Compound, 1inch, etc.
- Web3 infrastructure: Ethereum Name Service, Chainlink, The Graph, etc.
- GameFi: Tamadoge, Battle Infinity, Axie Infinity, etc.
- Decentralized Storage: BitTorrent, Swarm, Filecoin, etc.
- Centralized Finance (CeFi): BNB, Nexo, etc.
By investing in promising assets across a range of sectors, you can comfortably spread out and minimize risk in your portfolio.
New and Established Assets
More than a decade old now, the cryptocurrency industry has a wide range of established projects that helped pioneer the growth of the blockchain landscape. It also has a huge number of promising up-and-coming assets, some of which have the potential to displace older, slower-moving projects.
Ambitious new upstarts like Battle Infinity seek to disrupt the status quo in blockchain gaming, while a huge number of powerful new layer 1 blockchains are hot on the heels of established juggernauts like Ethereum and Cardano.
When deciding your crypto asset allocation, consider selecting a range of both new and established assets — this will give you the stability of the proven projects as well as the unrivaled potential of newer ones.
Consider Cryptocurrency Stocks
Though directly buying and holding cryptocurrencies allows you to directly speculate on the performance of individual assets, you can also simply buy stocks in companies that provide services in the blockchain and/or digital asset space.
This might include centralized exchanges, digital asset custody providers, mining hardware manufacturers, payment processors, metaverse stocks, technology providers, and more.
Crypto stocks provide an excellent way to introduce some diversity into your portfolio, given that they are generally less volatile and less correlated to individual cryptocurrencies.
Why it’s Important to Have a Balanced Cryptocurrency Portfolio
Cryptocurrencies are widely known as a particularly volatile asset class. Because of this, investors should expect significant volatility in their portfolios.
The best crypto portfolio allocation includes a balanced array of different coins and tokens. This ensures you stand the best chance of capturing the impressive upside of some assets, which can be used to balance the downside expected from underperformers.
A well-balanced portfolio reduces overall risk, giving you the best chance of achieving a net profit over your investment time horizon. It also protects you against black swan events, such as the recent Terra/LUNA crash, which could have wiped out traders who were all-in. On the flip side, it gives you a better chance of locking in a unicorn — i.e. a project that achieves far better than expected returns.
By including a wide range of non-correlated assets in your cryptocurrency portfolio allocation, you can also reduce your potential downside during times of overall decline — such as during a bear market. This can help you come out relatively unscathed during the worst periods, preventing you from selling out long-term winners before they begin to pick up.
For less experienced investors, this makes it easier to stick to a long-term investment strategy, since it can be extremely tempting to exit fundamentally strong positions just because they are in a temporary loss. Remember — always stick to the game plan and avoid making rash decisions based on emotions or attachment.
Part of having a balanced crypto portfolio also involves using crypto portfolio tracking tools. Crypto portfolio tracking apps enable users to combine all of their assets with the portfolio tracker, providing buyers with a bird’s-eye view of their complete crypto holdings on a single screen. They can connect to numerous exchanges, wallets, and other crypto platforms where users can store their coins.
How to Create a Well-Balanced Crypto Portfolio
As the cryptocurrency industry has expanded, it has gradually gotten easier to create, track, and manage a balanced crypto portfolio. Today, there are dozens of both free and premium tools you can use to scope out new opportunities, secure them at the best rates, and make crypto portfolio management a simple task.
Here’s how you might get started:
Step 1: Identify Opportunities
First things first. You’ll need a way to spot opportunities and promising projects early. Practically, this usually entails leveraging one of the myriad data aggregators now available to track your favorite crypto as well as keeping tabs on the latest news.
Platforms like CoinMarketCap, CoinGecko, and Messari can be used to get a broad snapshot of the crypto market, whereas the best trading platforms usually offer simple charting tools that can be used for technical analysis. Beyond this, many cryptocurrency investors opt to use a range of indicators, like the stock-to-flow model, Bitcoin Bull Run Index, Bitcoin Fear and Greed Index, and more to inform their crypto asset allocation decisions.
Step 2: Create Your Exchange Account
Once you’ve identified the assets you want to buy, you’ll need to create an exchange account. Popular platforms like Binance tend to support the vast majority of well-established assets, but for newer tokens, you may need to use a decentralized exchange (DEX) like Uniswap or PancakeSwap.
Once you’ve set up your exchange account or are connected to an appropriate DEX, you’ll be able to set your orders and begin gradually scaling in using a suitable strategy — such as dollar cost averaging or lump sum investing based on your individual entry levels.
Step 3: Track Your Portfolio
Crypto portfolio management doesn’t need to be time-consuming. There is now a huge range of tools and services that can help you not only keep tabs on your portfolio more efficiently but also alert you to any potential problems or opportunities.
Platforms like CoinGecko and TradingView allow you to automatically set price alerts — essentially automating the tracking of entry and exit points. Likewise, many exchanges will highlight the best and worst-performing assets.
Beyond this, it’s wise to keep up-to-date with your investments, particularly regarding news or changes that could improve or worsen its prospects over your time horizon — being ready to rebalance your portfolio as and when needed.
Optional Step: Invest in a fund
The cryptocurrency industry is moving at a breakneck pace. While this is excellent for innovation and growth, it can make it difficult for casual observers to keep up and stay abreast of important news.
Because of this, it can require considerable time and patience to maintain an extensive, well-diversified, and regularly updated portfolio. And not everyone is able to commit the time required.
Cryptocurrency funds represent an alternative option. Similar to a hedge fund, which manages a portfolio of traditional assets, crypto funds are a type of investment vehicle that gives users exposure to a wide range of assets through a single investment.
These have a fund manager that uses his/her expertise to determine the best crypto portfolio allocation.
A huge number of funds now exist, many of which cover different verticals — such as presale stage projects like Tamadoge, large caps like Bitcoin and Ethereum, DeFi-specific projects, blockchain gaming, and more.
Crypto funds can make it easier to gain exposure to a diverse range of assets, but none guarantee a positive return on your investment. Because of this, it’s wise to do your due diligence before selecting a fund — taking into consideration its past performance, management fees, transparency, and reputation.
Examples of Diversified Crypto Portfolio Allocations
As we previously touched on, a diverse portfolio helps to spread out risk, smoothes losses associated with underperformers, and helps to ensure you are exposed to big winners.
Given that there are well over 10,000 cryptocurrencies, you can arrange your portfolio in an almost infinite number of ways. That said, not all cryptocurrencies are built equal, and some have more potential than others. Your job is to deck your portfolio out with the assets that represent the best risk/reward ratio.
A well-balanced and relatively conservative portfolio would look something like this:
- Ethereum (ETH) – 30%
- BNB – 25%
- Cosmos (ATOM) – 15%
- Acala (ACALA) – 15%
- Tamadoge (TAMA) – 5%
- Battle Infinity (IBAT) – 5%
- XCAD Network (XCAD) – 5%
For a more aggressive portfolio that plays into the current trends of 2024, consider the following:
- NEAR Protocol (NEAR) – 25%
- Terra 2.0 (LUNA) – 12.5%
- Moonbeam (GLMR) – 12.5%
- Tamadoge (TAMA) – 12.5%
- Lucky Block (LBLOCK) – 7.5%
- Battle Infinity (IBAT) – 7.5%
- Mina Protocol (MINA) – 7.5%
- Euler (EUL) – 5%
- Nym (NYM – 5%
- XCAD Network (XCAD) – 5%
If you’re looking for a base to work from, consider examining the public portfolios of well-known traders and funds. These can provide some insights, but be sure not to copy their portfolio in its entirety — since you cannot be sure of their entry prices or investment rationale.
Conclusion
Right now, the cryptocurrency industry appears to be nearing the end of a bear market — with most cryptocurrencies trading at significant discounts to their peak values.
Understandably, savvy investors are using this as an opportunity to scoop up undervalued assets on the cheap and put together the best crypto portfolio allocation they can before the market begins recovering.
In this guide, we’ve covered the tips you can use to build a strong portfolio that will put you in an excellent position over your investment time horizon. We identified Tamadoge as our single best pick for any balanced portfolio in 2024 due to its impressive long-term potential and ability to garner considerable hype even in a bear market and spotted other heavy hitters like Battle Infinity and NEAR protocol — which can help to round out your portfolio.
If you’re looking to diversify your portfolio, see our guide and list of the top Metaverse coins.
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption
Battle Infinity - New Metaverse Game
- Listed on PancakeSwap and LBank - battleinfinity.io
- Fantasy Sports Themed Games
- Play to Earn Utility - IBAT Rewards Token
- Powered By Unreal Engine
- Solid Proof Audited, CoinSniper Verified