Bitcoin is again trading above $100,000.<\/p>\n
It jumped 11% in the last 2 days, and 270% since August 2023 when I told my Venture<\/em><\/a> <\/em>subscribers to \u201cbuy\u00a0crypto\u201d:<\/p>\n If you missed the first move, now is your 2nd chance to buy <\/strong>quality cryptos<\/strong><\/a> before they start their the next leg\u00a0higher.<\/strong><\/p>\n I expect 2025 will be another great year for crypto<\/a> with bitcoin soaring as high as $250,000 per\u00a0BTC<\/a>.<\/p>\n But remember, nothing goes up in a straight line. Crypto is extremely volatile. And it\u2019s important to have a plan to deal with the inevitable ups and\u00a0down.<\/p>\n Here\u2019s my three-point checklist to maximize crypto profits while minimizing drawdowns\u2026<\/p>\n Our RiskHedge Venture\u2019s<\/em><\/a> portfolio uses the barbell strategy, a portfolio construction tool that strikes the right balance between risk and reward. It does so by investing in two distinct types of assets, on both extremes.<\/p>\n On one end, you have \u201csafer\u201d assets. On the other, you have \u201chigher-upside\u201d assets. Just like a barbell, we load the portfolio up on either end, with nothing in the\u00a0middle.<\/p>\n Invest 75% of your crypto allocation into larger, \u201csafer\u201d cryptos like <\/strong>Ethereum<\/strong><\/a> and <\/strong>Solana<\/strong><\/a>. Put the remaining 25% into <\/strong>higher-upside tokens<\/strong><\/a>.<\/strong><\/p>\n Crypto is just one asset in an overall portfolio. You should only put a small percentage\u200a\u2014\u200asay, 1% to 2%\u200a\u2014\u200aof your investable assets into crypto. Why only\u00a01%\u20132%?<\/p>\n I believe crypto will be the best-performing asset class in the world over the next decade. But if you have too much money in an asset that gets cut in half every so often, you\u2019ll likely panic. I know many who were shaken out by sell-offs along the\u00a0way.<\/p>\n Investing only a small chunk of your overall portfolio into crypto allows you to sit tight through sell-offs\u2026 and stick around for the big gains that\u00a0follow.<\/strong><\/p>\n A useful rule of thumb: The more volatile an investment is, the quicker you should be to take some profits off the\u00a0table.<\/p>\n That\u2019s why when we\u2019re up 100%+ on one of our crypto investments, we typically sell half of our position. This way we get our initial investment back and let the rest \u201cride free.\u201d <\/strong>This strategy allows us to ride cryptos to big profits while reducing our risk to virtually zero.<\/p>\n It\u2019s tough to hit the sell button in a raging bull market. I caught some flak for taking \u201cfree rides\u201d on UNI, ETH, and SOL last week. People always feel like they sold too early, even though they still hold half of the position. But speaking from experience, they\u2019ll thank me\u00a0later.<\/p>\n Bottom line: 2025 promises to be exciting for crypto investors.<\/strong><\/p>\n P.S: <\/strong>Here are 3 early-stage cryptos I\u2019m watching at the\u00a0moment<\/strong><\/a>.<\/strong><\/p>\n For more insights, <\/strong>subscribe to my investing letter The\u00a0Jolt\u26a1<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n I publish fresh research on stocks and crypto every Monday and\u00a0Friday.<\/p>\n Click here to subscribe<\/a>.<\/p>\n \u2014 Stephen McBride, Chief Analyst at <\/em>RiskHedge<\/em><\/a><\/p>\n My 3-point checklist to maximize crypto profits<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin is again trading above $100,000. It jumped 11% in the last 2 days, and 270% since August 2023 when I told my Venture subscribers to \u201cbuy\u00a0crypto\u201d: If you missed the first move, now is your 2nd chance to buy quality cryptos before they start their the next leg\u00a0higher. I expect 2025 will be another […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-36716","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/36716"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36716"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/36716\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}#1: Barbell\u00a0strategy<\/h3>\n
#2: Position\u00a0sizing<\/h3>\n
#3: \u201cFree\u00a0rides\u201d<\/h3>\n