How much of your total wealth allocated to investments do you place in crypto as a percentage? I head podcast where people are buying up a specific amount every month do dollar cost average and accumulate crypto over the long run.
Do you have a strategy for allocating funds to crypto continuously or have you places a certain amount? In any case, what percentage do you allocate and why? Personally I have around 15% allocated into crypto, but I am looking for arguments to either increase or decrease my exposure.
At this point, close to 50%, but I never actually 'invested' 50%, it's just that my portfolio has seen significant growth these last few months (as I imagine most of you have), getting to the point that it now represents more than 50% of my net worth.
It's hard to argue for an investment strategy for you, since a lot of things have to be taken into consideration (there's a reason why we have financial planners for this).
- Your income & how steady it is
- The amount of savings and how much of it you're willing/capable of risking
- How bullish you are on the industry
If you have a smaller net-worth but a steady income, you're probably better off investing a larger percentage as in relation that might not be as risky since your income should offset any loss (due to the lower threshhold) in standard of living should the bubble burst at some point rendering your portfolio severely depressed.
If you have a larger net-worth, a smaller percentage should probably be invested (although more capital on a dollar basis instead), since any potential increase will have a smaller positive impact on your standard of living, meaning that you have a smaller incentive to risk a large percentage of your current net-worth due to the upside being lower for you personally since more money would yield less of an improvement in quality of living, but a significant loss could cause a lot of stress.