A professional investment portfolio plan for BTC (Bitcoin) and ETH (Ethereum) spot markets, combining the market characteristics, risk-return ratios, and asset allocation logic of both, to provide allocation strategies for different risk preferences (Note: Cryptocurrency investment is extremely high risk and requires careful assessment of personal risk tolerance):
I. Core Logic
- BTC: The 'digital gold' of the cryptocurrency market, market leader, relatively low volatility, suitable as a stable core asset.
- ETH: Infrastructure for smart contracts and the Web3 ecosystem, with growth attributes, benefiting long-term from the development of DeFi, NFTs, Layer 2, etc., with higher volatility than BTC.
- Portfolio Objective: Balance stability and growth potential through the complementary risk-return of both, while further diversifying risk with traditional assets or stablecoins.
II. Categorized Investment Portfolios
Portfolio 1: Conservative and Stable (Low Risk)
- Allocation Ratio:
- BTC: 50%
- ETH: 20%
- Stablecoins (USDT/USDC): 25%
- Gold ETF/Treasury Bonds: 5%
- Strategy:
- Use BTC as the core base, controlling the ETH ratio within 20% to reduce volatility risk.
- Stablecoins as liquidity buffers, gold/Treasury bonds hedging against the dual risks of cryptocurrency and fiat currency systems.
- Applicable Scenario: For risk-averse individuals, primarily seeking asset preservation, holding period of over 1 year.
Portfolio 2: Balanced Growth (Medium Risk)
- Allocation Ratio:
- BTC: 40%
- ETH: 30%
- U.S. stock index funds (such as S&P 500): 15%
- Stablecoins: 15%
- Strategy:
- BTC + ETH accounts for 70%, capturing long-term trends in cryptocurrencies; U.S. stock funds diversify single market risks.
- Quarterly dynamic rebalancing (e.g., if ETH rises to 35%, reduce to 30%, and buy more BTC or stablecoins).
- Applicable Scenario: For medium to long-term investors, balancing stability and growth, adapting to market bull and bear transitions.
Portfolio 3: Aggressive Growth (High Risk)
- Allocation Ratio:
- BTC: 30%
- ETH: 50%
- High Volatility Assets (such as ETH ecosystem Layer 2 tokens): 15%
- Cash: 5%
- Strategy:
- Heavily invest in ETH betting on the Web3 ecosystem explosion, paired with Layer 2 and other related assets to enhance returns.
- Retain cash to cope with extreme volatility, avoiding emotional chasing and panic selling.
- Applicable Scenario: High-risk takers optimistic about ETH's long-term technical iterations (such as EIP-4844, sharding technology), holding period of 2-3 years.
Portfolio 4: Long-term Dollar Cost Averaging (DCA Strategy)
- Allocation Ratio:
- Monthly fixed fund allocation:
- 50% Dollar Cost Averaging BTC (weekly or monthly DCA)
- 40% Dollar Cost Averaging ETH
- 10% allocated to stablecoin reserves
- Strategy:
- Adopt the 'smile curve' strategy, automatically increasing purchases during declines, smoothing the holding cost.
- Recommended investment period of 3 years or more, to ride through bull and bear cycles, suitable for non-professional investors.
- Applicable Scenario: Long-term optimistic about cryptocurrency but lacking market timing ability ordinary investors.
Portfolio 5: DeFi Yield Enhancement (Yield-Oriented)
- Allocation Ratio:
- BTC: 30% (deposit in platforms like Celsius to earn interest, annualized about 2-3%)
- ETH: 40% (staking, annualized about 4-5%)
- Stablecoins: 30% (participate in DeFi lending, such as Aave/Compound, with annualized returns of 5-8%)
- Strategy:
- Generate passive income from spot assets, BTC for stability, ETH betting on ecological development + staking income.
- Choose leading platforms to reduce smart contract risks, profits can be periodically converted to stablecoins for rebalancing.
- Applicable Scenario: For investors pursuing both 'holding + yield' dual objectives who have some understanding of DeFi.
Portfolio 6: Macroeconomic Hedge (Counter-Cyclical)
- Allocation Ratio:
- BTC: 35%
- ETH: 25%
- Anti-inflation Assets (Gold ETF + Oil Fund): 20%
- Cash/Short Bonds: 20%
- Strategy:
- BTC + ETH as a 'digital asset hedge against fiat currency inflation', gold + oil hedge against traditional economic risks.
- Cash reserves to cope with black swan events (such as policy risk, market liquidity crisis).
- Applicable Scenario: When global economic uncertainty is high, seek cross-asset class risk diversification.
Portfolio 7: Event-Driven (Short-term Opportunities)
- Allocation Ratio:
- BTC: 40% (base holdings)
- ETH: 50% (increase holdings before major upgrades, such as Cancun upgrade, staking withdrawals)
- Stablecoins: 10% (take profits after events materialize, convert to base holdings)
- Strategy:
- Track key events in the ETH ecosystem (such as hard forks, protocol upgrades), and position in advance to capture short-term gains.
- Gradually reduce positions after events materialize to avoid the risk of pullbacks after good news is realized.
- Applicable Scenario: Short-term traders sensitive to market hotspots, with certain technical analysis skills.
Portfolio 8: Minimalist (Focus on Core)
- Allocation Ratio:
- BTC: 60%
- ETH: 40%
- Strategy:
- Eliminate all non-core assets and focus on the top two leaders in the cryptocurrency market.
- Hold long-term, ignore short-term fluctuations, suitable for 'believers that cryptocurrency will eventually become mainstream' type of investors.
- Applicable Scenario: For those who dislike complex configurations and pursue 'simplicity equals efficiency' as long-term holders.
III. Dynamic Management and Risk Control
1. Rebalancing Mechanism:
- Check asset ratios quarterly; when a single asset deviates from the target allocation by ±10%, adjust the portfolio (e.g., if ETH rises from 30% to 40%, sell some ETH to buy BTC/stablecoins).
2. Stop Loss Discipline:
- Set the maximum drawdown tolerance for the portfolio (e.g., 15%-20%). When it is breached, reduce cryptocurrency holdings and increase the proportion of stablecoins/cash.
3. Position Control:
- Total cryptocurrency position should not exceed 30% of personal investable assets (high-risk investors may extend to 50%) to avoid excessive concentration in a single category.
IV. Important Reminder
1. Extremely High Risk: Although BTC and ETH are leading cryptocurrencies, the daily decline may still exceed 20%. Invest with funds that you can afford to lose.
2. Compliance First: Ensure the trading platform is compliant (such as Binance, Coinbase) and avoid participating in illegal financial activities.
3. Technical Security: Store large assets in hardware wallets (such as Ledger) and enable two-factor authentication (2FA).
4. Professional Consultation: Consult a professional financial advisor in the cryptocurrency field, combining personal financial situation, investment goals, and tax planning.
The above portfolios can be flexibly adjusted based on market cycles (such as bull and bear phases) and personal risk preferences, with the core aim of reducing non-systematic risk through scientific allocation while capturing long-term growth dividends in cryptocurrency.
