Best Crypto Portfolio Allocation Tips for 2024

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. Dogecoin20 ($DOGE20) – Sustainable Staking Rewards From This Years Hottest Meme Coin

An increasingly popular choice for those looking to diversify their crypto portfolios is Dogecoin20. This environmentally friendly innovative take on the well known Doge, Dogecoin20 provides holders with faster, cheaper and more secure transactions alongside the opportunity to stake for further passive rewards.

Built on the Ethereum blockchain, Dogecoin20 uses the more sustainable Proof of Stake algorithm thus avoiding any resource heavy mining operations. In no way affiliated with Doge, Dogecoin20 aims to provide the market with a greener and more profitable version of the original coin. In fact, you might come to think of the project as just how Elon would have created Doge!

Oge20 Dog-2 img

Once purchased, $DOGE20 tokens can be put to work straight away by earning a passive yield through sustainable staking. 12.5% of the overall token supply has been reserved for staking in year one with 2.5% for year 2. It goes without saying therefore, that it is advisable to purchase and stake your tokens as soon as you can.

The presale is already underway and as there is only one price for presale coins, everyone pays the same. Once the presale ends, the token supply will be locked until the coin has been listed on leading exchanges ensuring that no one can dump the coin on the first day of trading and cause a price crash.

Doge20 tokenomics

For more information on the background to the project, head over to the Dogecoin20 website and be sure to download the whitepaper. To stay abreast of all the latest news and product updates, be sure to follow Dogecoin20 on Twitter and join the exclusive Telegram group.

2. 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

3. 5th Scape (5SCAPE) – Comibing VR With Blockchain To Offer Immersive Games

5th Scape ($5SCAPE) is revolutionizing the virtual reality (VR) and gaming industry by combining it with blockchain. It is developing blockchain-based VR games and creating VR headset technology to potentially surpass industry giants like Meta Quest and Oculus Rift in the gaming and metaverse space.

The platform recently launched its presale and has already reached near the $1 million milestone, showing high investor confidence.

One of the project’s highlights is ‘Cage Conquest,’ an MMA-themed VR game expected to be released in Q2 2024. This game marks the start of a comprehensive library of immersive VR experiences. 

The platform also offers token holders unique benefits such as lifetime access to games, staking rewards, and discounts on VR hardware.

5th Scape homepage

At the time of writing, the $5SCAPE tokens are priced at $0.00187. This price will keep rising through its 12-stage presale until listing.

The project aims to raise $15 million and create a solid foundation for the platform’s future development and the expansion of its VR game.

Investors and VR fans looking for a project with hyper-realistic VR games with high rewards, security, and utility can consider 5th Scape in their crypto portfolio allocation. Users can join the 5th Scape Telegram group and follow it on X (Twitter) for the latest updates.

Presale Started January 2024
Purchase Methods ETH or USDT
Chain Ethereum
Hard Cap $15 million
Min Investment None
Max Investment None

4. Smog ($SMOG) – Best Addition to Your Crypto Portfolio for Staking and Airdrop Rewards

Smog ($SMOG) has the potential to be one of the best additions to your cryptocurrency portfolio. This is a new meme coin that has recently launched on decentralized exchanges.

Within a week of its launch, $SMOG has soared by more than 3,000%. The token has jumped from a $2 million market cap to more than $65 million.

Smog token page

The ultimate goal for Smog is to become one of the biggest meme coins. Based on the Solana blockchain, $SMOG will offer huge airdrop rewards to token holders.

$SMOG has a total supply of 1.4 billion – 35% of which will be distributed through the airdrop campaign. You can start earning airdrop rewards by holding $SMOG, and staking tokens on the smart contract.

Staking tokens can also lead to APYs as high as 42%. A huge 50% of the token supply will be used to market the project. With new centralized exchange listings on the horizon, $SMOG could become one of the best-performing tokens of the year.

Read the Smog whitepaper and join the Telegram channel for more information.

5. Bitcoin Minetrix (BTCMTX) – High Potential Crypto With BTC Cloud Mining Solution & APY Above 10,895%

Bitcoin Minetrix (BTCMTX) could be the perfect addition to a crypto portfolio as it involves a largely untapped area – Bitcoin cloud mining. Even though you’ll find plenty of Bitcoin cloud mining services, the Bitcoin Minetrix project is the world’s first stake-to-mine Ethereum-based cloud mining solution.

Bitcoin Minetrix presale

This Bitcoin cloud mining system works by staking your BTCMTX tokens and earning mining credits. The credits are then used to mine BTC on the cloud. It’s a simple solution that removes the well-known complexities of Bitcoin mining, which involves large upfront resources and environmentally damaging mining rigs. The more credits that are burned, the more BTC the miner earns. 

Bitcoin Minetrix offers an APY of 10,895%, with a mining reward of 158.5 BTCMTX per block and more than 661 million staked tokens. The coin’s current price is $0.0134 (mid-February 2024). Even if you’re not interested in BTC mining, you could still include this project, as it represents a good crypto portfolio opportunity.

More info can be found within the Whitepaper, along with the X and Telegram accounts.

6. 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.

7. 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.

8. 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.

9. 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 Dogecoin20, Sponge V2 and Bitcoin Minetrix.

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.

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, Dogecoin20 ($DOGE20) would have to be the #1 addition to a crypto portfolio. This new meme coin builds on the success of the popular Doge coin but is greener, cheaper and faster while offering a chance to earn sustainable passive staking rewards.

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Connor Brooke
Editor

Connor is a Scottish financial expert, specialising in wealth management, equity investing, and blockchain technology. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, including Techopedia, whilst also helping write business plans for SMEs seeking funding. Holding a Bachelor’s degree in Finance from the University of Strathclyde, and a Master’s degree in Investment Fund Management from the University of Glasgow, Connor has extensive knowledge in the investing space. He has authored two theses on mutual funds and the UK market - one of which was chosen for publication.