How to Start a Crypto Portfolio

Why invest in cryptocurrency?

  • High expected returns
  • Low correlation to other asset classes such as stocks & bonds
  • Extreme volatility

How much should I invest?

Where do I purchase cryptocurrency?

What should I invest in, and why?

  • Knowledge: You should understand, at a basic level or better, what you’re investing in. The more you understand the technology, the better
  • Humility: You are not smarter than the market, you are unable to call the top or bottom, and you can’t pick the asset with the best performance
  • Context: You are investing in cryptocurrencies because they are a valuable addition to a broader investment portfolio, which you will manage for years

The Starter Portfolio

  • 20% cash —this provides stability & allows you to systematically take advantage of price declines
  • 30% Bitcoin
  • 30% Ether
  • 20% Ethereum tokens

Executing your first trade

Rebalancing your portfolio

We use a logarithmic scale because cryptocurrencies have performed amazingly well
  • 20/30/50 Portfolio: 18.5 (winner!)
  • Bitcoin: 12.7
  • Ether: 17.1

Next Steps

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Full-stack founder of Compound. Chartered Financial Analyst, previously a finance guy.

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Robert Leshner

Robert Leshner

Full-stack founder of Compound. Chartered Financial Analyst, previously a finance guy.

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