
Miles Deutscher|Mar 28, 2025 14:30
Portfolio strategy that has worked well for many of my friends in the space: Sit 100% in stables, and take individual bets when opportunities arise.
Essentially, treating stables as your default position, and any altcoin trade as a deviation away from that position.
It's not the right strategy for everyone, and you do need skill to manage the entries/exits of your active positions - but i've seen it work many times.
Pros:
• No downside risk (minus inflation/opportunity cost)
• Liquidity to take advantage of big drawdowns whilst others panic
• Less emotion
• Leverage to go big when the stars align on a trade
Cons:
• Rules out long-term fundamental investing (where I have historically done well, alongside many others)
• Requires a higher degree of skill with your active trades
• Opportunity cost/risk of being caught off-side (slightly mitigated by the fact that in an uptrend, you're likely trading bullish continuation anyway)
Currently, I am doing a 50/50 split. 50% long term, 50% stables (this strategy). That's where I am most comfortable, and what aligns the best with my temperament. The best strategy is the one which aligns with your own skills/pitfalls.
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