Balance of crypto vs traditional investments


#1

I’m curious to know how are people diversifying their investments. If you’re willing to share honest but rough proportions, what is your balance between different asset classes or investment vehicles?

I started out by putting about 25% what I had disposable for savings into cryptocurrencies and the rest into a managed investment ISA (UK tax free savings, diversified). This was quite a while ago now and since the boom of 2017 my distribution is no longer 25/75 by value. As a buy and holder, I’m not sure I want to rebalance for the sake of diversification, though I know it’s the conservative and sensible thing to do.

What are others doing in terms of diversifying new investments outside crypto, and also in terms of rebalancing if your crypto holdings now outweigh your traditional investments?


#2

I started looking at traditional investments about a year ago (putting money aside before that was not feasible) but I was quite unsatisfied (return rates just above inflation, money isn’t available quickly, etc…). I’ve decided to put 25% of my net worth in crypto and while my salary and other incomes kept growing my account, my crypto holdings now represent ~60% of my net worth.

Like @ben, I do think the safe and conservative way to go would be to cash out some of it, pay taxes and diversify.
I’ve been looking at stocks from various companies but there will probably be a correction after the bull market of 2017. So maybe not the best time to switch crypto for stocks.

I think 2018 will be a huge year for crypto. So many projects, people and ideas are coming together. I’m willing to take the risk to loose some of my unrealised gains and ride the crypto-train.


#3

I put about 10% of my income (NOT net worth) into crypto - my ‘traditional’ investments are a few stock picks, lots of index funds, and some robo-advising (I use Wealthfront, Betterment is another popular one in the US). They do pretty well, and they’re more ‘safe’ money, and that’s what I’m counting on being there if I need to put a down payment on a house.

Like most, that 10% has grown to be a larger part of my net worth. I don’t really plan on cashing out or rebalancing unless I need the money - just rebalancing within crypto. I still treat crypto as something that can disappear overnight so I want to make sure that I still hit my personal savings goals in traditional investments, and crypto is the cherry on top.