Thoughts on managing altcoin position sizing vs. BTC/ETH?

asked by u/eadams · 16d · 2 answers

Still getting my feet wet with crypto beyond the major players. I've been comfortable with my $BTC and $ETH sizing, but when I look at some of the smaller cap altcoins, my position sizing feels... off. I try to scale in, but the volatility can make a small position feel like a large one, and a larger one feel like I'm gambling. How do you all approach this? Is there a general rule of thumb for allocating to more speculative plays relative to your core holdings, or is it purely a factor of individual conviction and risk tolerance?

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  • u/joao.mendoza· 4 pts· 16d

    I generally keep altcoin positions much smaller, usually 1-5% of my crypto portfolio, and scale out quickly on strong moves. It helps manage the downside when they inevitably retrace hard.

  • u/suzuki_lei· 3 pts· 16d

    The smaller caps often require a much smaller allocation, percentage-wise, than your BTC/ETH. It's easy to get caught up in the potential upside, but the downside is equally amplified. Consider if you'd be comfortable losing that entire altcoin position, as that's always a possibility.

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