Portfolio Construction: Building a Resilient Multi-Asset Investment Strategy

Beyond "Just Buy Bitcoin"

The most common mistake: zero portfolio structure. 100% in one asset with no plan. Professionals construct portfolios.

Core-Satellite Framework

• Core (60-70%): BTC and ETH — longest track records, deepest liquidity
• Satellite (20-30%): Mid-cap alts (SOL, LINK, AAVE). Higher risk/reward
• Speculative (5-10%): Small-caps, new protocols. Size so 100% loss doesn't matter
• Cash/Stablecoins (5-15%): Dry powder. Having cash during crashes is a superpower

Position Sizing

• BTC/ETH: up to 25-35% each
• Large-cap alts: 5-10% per position
• Mid-cap: 2-5%
• Small-cap: 1-2% max

Rebalancing

Time-based: monthly/quarterly review. Threshold-based: rebalance when any position drifts 10%+ from target. Tactical: increase stablecoins during euphoria, increase crypto during fear.

Drawdown Management

• Pre-define max drawdown tolerance
• 10-15% stablecoin buffer reduces volatility
• DCA into drawdowns if thesis intact
• If you didn't sell at -20%, selling at -50% makes no sense

Bottom line: A boring, structured portfolio outperforms exciting concentrated bets over time.