Lesson 4 of 4 · 3 min read
Crypto in your portfolio
How much crypto is sensible?
The 5-10% rule
Many investors hold at most 5-10% of their portfolio in crypto. Enough to benefit from it, little enough to survive a crash.
Stocky says
With 5% crypto, an -80% crash can cost your total portfolio only ~4% — survivable. With 50% crypto you lose 40% of everything. Position size determines whether a crash is a scratch or a disaster.
Only money you can afford to lose
Crypto can drop -80% in a bear market. Never put in money you'll need soon.
Rebalancing keeps you in check
Crypto shoots up and suddenly becomes 25% of your portfolio? Then your risk has secretly grown much larger than you chose. Sell a portion back to your target percentage (e.g. 5-10%). That way you automatically take profit and keep the risk manageable.
Remember this
- Many investors hold at most 5-10% of their portfolio in crypto.
- Position size determines whether an -80% crash is a scratch or a disaster.
- Only put in money you can fully afford to lose.
- Rebalance back to your target percentage if crypto grows too large — that way you take profit and limit risk.
There is a quiz for this lesson
2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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