Best Crypto Portfolio Allocation Tips for 2024

Why Trust Techopedia Crypto
Why Trust Techopedia Crypto

Cryptocurrency is considered to be one of the best investment avenues nowadays. You can simply add promising coins to your crypto portfolio and then wait till they hit a desired price. In rare cases, this might happen in a few days, but it usually takes much longer, sometimes even years to see substantial profit.

However, purchasing only one or two cryptos is a bad idea. All experienced traders would tell you to diversify your portfolio according to several factors that we discuss in this article and, of course, according to your financial situation. Read on to discover the best crypto portfolio allocation tips and strategies for 2024 and beyond!

Best Cryptos for Your  Portfolio in 2024

The following cryptos are proven to be good investment options with high yields and returns. Perhaps you should check them out, too, and include at least some of them in your portfolio.

1. PlayDoge (PLAY) – Best P2E Meme Coin to Add Your Portfolio

We have picked PlayDoge ($PLAY) as one of the top tokens to add to your crypto portfolio in 2024. This is a doge-themed meme coin that offers utility through its play-to-earn (P2E) gaming ecosystem. 

Within the P2E game, PlayDoge implements the popular Doge meme as a playable character. Players are required to take care of their Pet Doge avatars and use them within mini-games to collect points. Through an online leaderboard, PlayDoge distributed $PLAY tokens to the top performers. 

PlayDoge presale

Along with the P2E rewards, PlayDoge should also be added to your portfolio if you are looking to earn passive income. This token offers huge APY (Annual percentage yield) through its staking mechanism. Since PlayDoge is multi-chain, tokens can be staked on the ETH and BNB chains. 

Currently, one can stake $PLAY and generate an APY of 216% on ETH, and 87% on the BNB chain. From a total supply of 9.4 billion tokens, 50% has been allocated for the presale. Within a few weeks, the presale has raised more than $4.2 million. 

Learn more about this P2E meme token by going through the PlayDoge whitepaper and joining the Telegram channel

Presale Started May 2024
Purchase Methods BNB, ETH, USDT, Card
Chain Binance
Hard Cap $24.4 Million
Min Investment None
Max Investment None

2. WienerAI (WAI) – New Meme Token Offers High Staking Rewards and an AI Bot

Investors can choose to purchase WienerAI ($WAI), a unique new meme cryptocurrency that taps into the artificial intelligence space. With the rising popularity of AI among cryptocurrencies, this will be an investment for the future. 

WienerAI will use AI tools like predictive analysis to run a cryptocurrency trading bot. $WAI token holders can input their questions on the bot and receive trading signals from WienerAI. The WienerAI bot scans the crypto markets and tracks real-time price movements to suggest new trades. 

WienerAI presale

The bot is beginner-friendly and instant, allowing traders to stay ahead of the market. This unique cryptocurrency could prove to be a worthwhile investment for those seeking trading signals and passive income. 

Through the WienerAI smart contract, $WAI tokens can be locked to earn a high APY. At press time, WienerAI is offering a 207% APY. Over 5 billion tokens are already locked on WienerAI. The APY will reduce as more tokens are staked. 

To join the presale, interested investors can purchase $WAI for $0.000717 per token. The presale is allocating 20.7 billion tokens – comprising 30% of the total 69 billion token supply.

Learn more about this project by reading the WienerAI whitepaper and joining the Telegram channel

Total Tokens 69 Billion 
Tokens available in presale 20.7 Billion
Blockchain Ethereum
Token Type ERC-20
Minimum purchase None
Purchase with ETH, USDT, and BNB

3. Base Dawgz (DAWGZ) – Multi-Chain Meme Token Offers Share-to-Earn Rewards

Base Dawgz ($DAWGZ) is a new meme token built on the Base blockchain. In recent times, new Base meme coins such as Toshi and Brett have offered exceptional growth. While Base Dawgz is a new token, it offers an edge over the other meme tokens due to its utility. 

Unlike many of the other meme tokens, Base Dawgz offers multi-chain compatability. It uses Wormhole and Portal Bridge technology to allow token holders to bridge over to the Ethereum, Binance, Solana, and Avalanche blockchains. 

Base Dawgz presale

From the top 10 meme coins by market cap, 7 are doge-themed tokens. Base Dawgz fits the criteria, while also promising other benefits to community members. For instance, users can create and share content related to Base Dawgz on social media, and win $DAWGZ token airdrops. 

20% of the total 8.453 billion token supply will also be allocated to existing token holders through staking pools. For all these reasons, Base Dawgz could be the next coin to add to your portfolio. 

At press time, $DAWGZ is priced at $0.00502 per token on presale. For more information, go through the Base Dawgz whitepaper and join the Telegram channel

Total Tokens 8.453 Billion 
Tokens available in presale 1.69 Billion
Blockchain Base, Ethereum, Solana, Avalanche, Binance
Token Type ERC-20
Minimum purchase None
Purchase with USDC, ETH, AVAX, SOL, BNB

4. Sponge V2 – (SPONGEV2) – Best Addition to a Crypto Portfolio For P2E and Staking Benefits

Another great additions to your crypto portfolio could be Sponge V2 ($SPONGEV2) – one of the latest meme tokens. It is actually an upgraded version of the original SPONGE token that was popular around May of 2023. SPONGEV2, however, is going to attract even more investors and, of course, bring them solid staking yields and rewards through a play-to-earn system.

SpongeV2 home

Currently, SPONGEV2 can only be earned by holding $SPONGE – the original token version. Existing SPONGE token holders can stake their holdings on the new V2 smart contract and earn an equal amount of SPONGEV2 tokens. Alternatively, you can buy SPONGE through the website, after which your tokens will automatically be staked on the V2 contract.  As of mid-February 2024, 1 SPONGE token equals $0.000899. Furthermore, you can earn some extra coins by competing in the P2E environment.

This can be a good addition to your portfolio due to the regular staking yields. The smart contract can offer up to 400% in APYs (Annual Percentage Yields), which is reason good enough to consider this crypto project. 

For further information, join the Sponge V2 Telegram channel and Discord

5. Ethereum (ETH) – Decentralized Blockchain Network for dApp Developers

Ethereum is another asset to consider when determining the most effective crypto asset allocation. For those unaware, Ethereum is the second-largest cryptocurrency globally (just behind Bitcoin), boasting a market cap of nearly $300 billion at the time of writing.

Ethereum is a blockchain platform launched in 2015 that enables developers to construct decentralized applications (dApps) easily. The platform’s native currency is ETH, which has various use cases, such as paying for fees that arise from deploying smart contracts and fees that come with all sorts of transactions between users.

ETH price chart

ETH is often touted as one of the best long-term crypto projects to invest in since it provides direct exposure to the Ethereum network’s growth. This network has enormous potential and is now the go-to for developers operating in exciting areas like the metaverse and NFTs. 

Its current price stands at nearly $2,500 per ETH coin.

6. Ripple (XRP) – Low-Cost Payments Network with Stellar Reputation

Ripple is another well-known crypto worth your consideration. Although Ripple is the company’s name behind the crypto project, it’s often used interchangeably with its coin, XRP, when discussed in an investment context.

XRP price chart

Ripple’s primary offering is called ‘RippleNet’ – a disruptive payment network that allows individuals and businesses to send cross-border payments quickly and cost-effectively. XRP is the native token of this network, used for settlement and to pay for fees.

Thus, crypto investors often include XRP in their portfolio to gain exposure to this proven project. You can also purchase XRP easily through any of the well-established cryptocurrency exchanges. At the time of writing, XRP’s price is hovers around the $0.52 level.

7. Binance Coin (BNB) – Native Token of the Binance Crypto Exchange

Constructing the best crypto portfolio allocation involves investing in assets unrelated to the main blockchain projects, such as Bitcoin, Ethereum, and others. Binance Coin is a popular asset in this regard since it isn’t tied to either of these blockchains but is instead linked to Binance’s growth and performance.

BNB price chart

Binance Coin is typically used to pay fees on the Binance exchange. When users pay fees using BNB, they receive a significant discount, which is a clear incentive for these users to buy and hold this crypto.

Investors with a well-diversified portfolio may wish to consider BNB since it offers something different from BTC and ETH. However, it’s essential to be aware that BNB is tied to the Binance exchange, so whenever Binance is in the news for the wrong reasons, the BNB price tends to take a hit. Right now, it sells at $320 per coin.

8. NEAR Protocol (NEAR) – New Blockchain Network with Massive Scalability

Another crypto we’d recommend considering for a portfolio is NEAR Protocol. It might not be among the most popular coins in terms of market capitalization, but it has tremendous upside relative to the others we’ve mentioned on this list.

NEAR price chart

Essentially, NEAR Protocol is a Proof-of-Stake (PoS) blockchain network that looks to rival the likes of Ethereum and Solana. The network supports various programming languages, making it suitable for developers looking to build dApps.

NEAR tokens are the native currency used on the network. These tokens are mainly used to pay transaction fees stemming from smart contract execution. However, NEAR can also be staked by validators to earn staking rewards, which are also denominated in NEAR tokens.

One crucial difference between the NEAR Protocol and some other blockchains is that it uses a concept called ‘sharding’ to improve scalability. This means NEAR Protocol can handle around 100,000 transactions per second (TPS) – far higher than Bitcoin and Ethereum.

Best Crypto Portfolio Allocation – Key Points

Choosing an appropriate crypto allocation portfolio is crucial for maximizing returns and minimizing risk. Ultimately, this all boils down to the concept of diversification, a widely used crypto portfolio strategy that helps limit an investor’s exposure to a particular asset rather than spreading this exposure over an array of assets.

Thus, when constructing a good crypto portfolio, investors should always consider this concept of diversification. This means refraining from ‘putting all their eggs into one basket’ and instead placing their capital in a wide range of cryptos. For example, investors may wish to purchase cryptos with different use cases, sizes, token structures, and roadmaps.

It’s also wise to check out the most searched crypto projects, as these are often ‘trending’ and offer excellent returns opportunities. Finally, investors should also be aware of their unique risk tolerance and construct their portfolios accordingly. Some investors may be risk-averse, so they should stick to large-cap cryptos with the lowest volatility. On the other hand, certain investors may be risk-tolerant, meaning they’re happy to purchase higher-volatility assets or invest in the best crypto presales

How To Build a Crypto Portfolio – Core Strategies

According to CoinMarketCap, the cryptocurrency market is now valued at over $2.5 trillion. The current market scale brings countless investment opportunities, meaning it can be overwhelming for new crypto investors.

Fortunately, there are several tried-and-tested strategies for finding the ideal crypto allocation portfolio. Let’s take a look at a few of these strategies below:

Combine Well-Established Cryptos with New Presale Projects

When creating the best crypto portfolio allocation, one of the most important things to do is invest in cryptocurrency projects of varying sizes. This ties into the concept of diversification highlighted earlier since different-sized cryptos will often produce different returns.

For example, market-leader Bitcoin is likely the most popular crypto asset investors look to add to their portfolios. However, Bitcoin’s returns are often incomparable with smaller cryptocurrencies. Thus, investors can optimize their portfolio’s risk-return ratio by investing in both small and large cryptos.

Risk-tolerant investors can even go one step further and consider brand-new cryptos going through their presale phase – such as PlayDoge and WienerAI.

Diversify Across Different Areas of the Market

Another important aspect of crypto portfolio management is diversifying across different market areas. Not all cryptocurrencies are made equal, meaning each has its own ‘specialty’ within the context of the broader crypto sector. As such, a crypto that operates in one area will often produce different returns than one operating in another.

Thus, investors may wish to research the best cryptocurrency to invest in from several areas to ensure they have a balanced crypto portfolio. Here are some examples of popular areas within the crypto market right now:

  • Decentralized Finance (DeFi)
  • Metaverse cryptocurrencies
  • NFT projects
  • Blockchain gaming cryptos
  • Peer-to-peer (P2P) payment solutions
  • Artificial Intelligence (AI) cryptos

Consider Cryptos from Various Blockchain Networks

Identifying the best crypto portfolio allocation will also involve investing in cryptocurrencies from different blockchain networks. This may seem like common sense, but many investors fail to realize that the assets they’re investing in are highly correlated with the blockchains they’re linked to.

Take Uniswap and Aave as an example. Uniswap is a massive decentralized exchange (DEX) hosted on the Ethereum blockchain, while Aave is a lending protocol built on the same blockchain. As such, these cryptos have returns that are inextricably tied to Ethereum’s performance.

Ethereum blockchain

If Ethereum suffers a huge crash, then Uniswap and Aave’s prices will likely fall – meaning it’s a good idea to purchase coins/tokens from other blockchains, too. Some other blockchains that investors may wish to consider checking out include the following:

  • Solana
  • Cardano
  • Ripple
  • Stellar
  • Hyperledger

Make Sure to Rebalance Regularly

The final point to remember is that the crypto market is ever-changing. As such, investors must be prepared to rebalance their portfolios regularly. This ensures that assets exhibiting poor performance are removed and replaced with assets with a higher chance of positive performance – thereby increasing the overall returns potential of the portfolio.

Benefits of Having a Well-Balanced Crypto Portfolio

Effective crypto portfolio management can be the difference between making a loss and generating a profit, so it’s essential to get it right. With that in mind, here are some of the key benefits of creating a well-balanced portfolio:

Reduces Overall Portfolio Risk

Naturally, the main benefit of creating a well-diversified crypto portfolio is that it helps reduce the overall investment risk. As mentioned earlier, the process of diversification lessens the exposure to a single asset’s poor performance – meaning that if one asset posts a loss, there’s a chance another asset will make a gain.

This isn’t always the case, but diversification is undoubtedly a well-suited strategy for long-term investing. The alternative is to invest in just one or two assets and hope for the best. This may work in some cases, but it won’t play out well on average.

Maximizes Returns Potential

To follow up on the previous point, using the best crypto portfolio allocation has the benefit of maximizing returns potential for investors. Again, this is because investors aren’t overexposed to the performance of one or two assets.

In turn, if a few assets don’t perform well, other assets in a well-diversified portfolio will ‘pick up the slack’ and contribute towards positive performance.

crypto portfolio asset allocation

Hedges Against Major Regulatory Changes

Finally, crypto regulation is a hot topic globally, especially in the US. Currently, cryptocurrencies fall under the Bank Secrecy Act, yet they are also policed by the SEC. On top of that, the CFTC also plays a role in investigating crime within the crypto sector.

Given the multitude of organizations involved in regulation, market conditions can change rapidly. As such, holding a well-balanced portfolio can ensure investors are ‘flexible’ within the context of the market and aren’t overly affected by regulatory upheaval.

How to Effectively Diversify Your Crypto Portfolio

According to CoinMarketCap, there are over 2.2 million cryptocurrencies worldwide, with new ones launching weekly. Due to this, it can seem overwhelming to build a well-balanced portfolio, given the abundance of investment options.

To help streamline this process, we list five simple steps that investors can take to put them on the right pathway when building a good crypto portfolio:

Step 1 – Determine Investment Goals

The first (and most important) step investors must take is determining their investment goals. They will dictate all of the other steps in this process, so you need to carry out thorough research first.

Investment goals tend to consider the investor’s risk tolerance, investment horizon, and ideal returns. Some investors may also wish to only invest in certain asset classes or specific geographical regions.

Step 2 – Choose a Strategy

Once investment goals have been set, investors can think of a strategy. There are several options at your disposal, and some of the most popular include the following:

  • Dollar-cost averaging: This involves investing a fixed amount into the portfolio’s assets at regular intervals, regardless of the price.
  • Buy-and-hold: As the name suggests, this strategy means buying an asset and then holding it no matter what until it hits a predefined price level.
  • Value investing: This strategy means buying cryptos that are considered undervalued relative to their intrinsic value.
  • ICO/IDO investing: Some investors may wish to solely purchase ICO/IDO cryptos. This is a high-risk strategy, although it can provide exponential returns if performed correctly.

Step 3 – Research Potential Assets

Now it’s time for research. This is when investors must analyze the market to uncover the best-emerging cryptocurrencies to fit their investment goals and chosen strategy.

Researching the market usually involves creating a shortlist of potential assets and then looking into their historical price performance, fundamentals, tokenomics, and whitepapers. Investors may also wish to research on a macro level, analyzing the overall crypto market trends and regulations.

Step 4 – Select an Appropriate Asset Allocation

The next step is the investor finding the best crypto portfolio allocation that suits their requirements. For example, if an investor has $10,000 to allocate, how should they spread this capital throughout the portfolio?

crypto assets

Some investors opt to place an equal amount of capital in every asset, while others choose to put most of their capital in ‘safer’ cryptos and use the remainder for riskier projects. Again, this all comes down to the individual’s goals and preferences.

Step 5 – Rebalance/Monitor the Portfolio

Once the portfolio is set up, the job is not yet done – investors must continue to monitor their portfolios over the long term. This ensures that the portfolio is optimized for any given market conditions.

Monitoring a portfolio involves rebalancing the asset allocation, getting rid of poorly performing assets, and buying new cryptos that offer exciting opportunities. This process continues indefinitely, so investors must always be up-to-date with current events.

Examples of Well-Balanced Cryptocurrency Portfolio Allocations

As noted previously, finding the best crypto portfolio allocation must consider the individual’s risk tolerance level, trading goals, and investment horizon. Due to this, there’s no ‘one size fits all’ portfolio allocation for crypto investors – each investor must choose their own.

However, some popular crypto portfolio examples are widely used within the investment community. These allocations are described below:

The 33% Portfolio

Those with a higher risk tolerance may wish to utilize the 33% method. This is when an investor places 33% of their capital in Bitcoin, 33% in Ethereum, and 33% in high-risk, high-reward cryptos.

This latter 33% can be anything the investor is interested in and feels will perform well. A good example would be Love Hate Inu, which is riskier than BTC and ETH yet has the potential to offer much higher returns.

Aggressive Allocation

Finally, risk-seeking investors who are happy to tolerate additional volatility may wish to opt for a more aggressive crypto allocation portfolio. This involves placing a smaller percentage of their total capital base in BTC and ETH, leaving a larger portion for riskier cryptos.

For example, some investors may wish to place just 40% of their capital in BTC and ETH, split evenly across the two cryptos. This leaves a whopping 60% of the remaining capital to be used across more volatile cryptos with higher return potential.

Methodology

How We Analyze and Review Cryptocurrencies

1000+ Crypto Assets Reviewed

300+ Research Hours

14 Key Variables Evaluated

50+ Expert Opinions Examined

To ensure our readers receive unbiased, thorough, and reliable information, we conduct extensive research and analysis of a wide range of cryptocurrencies. We assess each crypto asset based on 14 distinct criteria, some of which include:

  • Market Potential: We evaluate the likelihood of future growth and the overall potential within the crypto market.
  • Liquidity and Trading Volume: We analyze the ease of buying and selling cryptocurrencies and their trading activity.
  • Community and Support: We examine the level of community engagement and the quality of support available to users.
  • Price History and Market Sentiment: We review historical price data and current market sentiment.
  • Security Measures and Past Breaches: We check for strong security protocols and any history of security breaches

By following this thorough approach, we provide comprehensive and reliable reviews tailored to the needs of crypto enthusiasts and investors alike.

Best Crypto Portfolio Allocation – Conclusion

To sum up, you should never invest in a single crypto asset, no matter how promising it might be. Instead, do your research and include as many as you can in your portfolio. If you’re not sure how to do that, simply follow our guide for the best crypto portfolio allocation tips and tricks.

Remember to diversify your portfolio according to common rules and practices. Even if one of your major coins fails, you’ll have others to cover your losses. The most important rule in the crypto world, however, is to do your research first and only then decide which project has the best future.

All things considered, PlayDoge ($PLAY) would have to be the #1 addition to a crypto portfolio. This new meme coin offers in-game rewards through its play-to-earn game, and offers staking returns to token holders.

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Sam Cooling
Crypto & Blockchain Writer
Sam Cooling
Crypto & Blockchain Writer

Sam Cooling is a crypto, financial, and business journalist based in London. Along with Techopedia, his work has been published in Yahoo Finance, Coin Rivet, and other leading publications in the financial space. His interest in cryptocurrency is driven by a passion for leveraging decentralized blockchain technologies to empower marginalized communities worldwide. This includes enhancing financial transparency, providing banking services to the unbanked, and improving agricultural supply chains. Sam has a Master’s Degree in Development Management from the London School of Economics and has worked as a Junior Research Fellow for the UK Defence Academy.