Crypto Allocation (in 100 words):
Crypto allocation refers to how an investor distributes their funds across different cryptocurrencies within a portfolio. A well-balanced allocation strategy helps manage risk and maximize potential returns. Common strategies include dividing assets among high-cap coins like Bitcoin and Ethereum, mid-cap altcoins, and low-cap or emerging tokens. Conservative investors might allocate 70% to Bitcoin and Ethereum, while aggressive investors may prefer a higher share in altcoins. Diversification, regular rebalancing, and understanding market trends are key to smart crypto allocation. It’s also important to align allocation with one’s risk tolerance, investment goals, and time horizon to build a sustainable crypto portfolio.
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