If you've been with me for a while, you know I've got a background in fighting - MMA, where I made champion, Thai boxing, western boxing, Brazilian jiu-jitsu, and college wrestling.
It's been a minute since I've stepped into the ring professionally, I can't say I've stopped fighting.
My opponents these days don't wear gloves or trunks - that I've seen.
These days I'm up against bigger, tougher opposition: Bears. Crypto-skeptics. Sellers.
See, I've got all - as in, one-hundred percent - of my liquid net worth in crypto and digital assets. And every day I'm out there protecting that wealth, defending my position, working to maximize my advantage.
It really isn't all that different from the Octagon. But I've got a kind of "secret weapon." It's a strategy, really, that cuts my losses, maximizes my gains, and puts my liquidity to work making even more.
And today I'm going to show you how it's done. Weighed in? Let's go...
Here's How I Run a Heavyweight Crypto Portfolio
Like I said a second ago, I'm all-in on digital assets, so I can't afford to go out there and just make bets, or throw wild punches.
So I use my "5 Ts Pillar System" to help me isolate the coins that are actually worth buying. It's important remember, even in a market like this, there are always coins worth buying - and the more unloved and oversold, the better. More on that in a second.
I want to have exposure to certain kinds of cryptos out there - there's almost too many to choose from. Some cryptos are "meme coins," others are for e-commerce. Some are used for computing power, others for cannabis, just to name a few.
But I focus my crypto investing in just three big areas - it makes things much easier, and it juices my profit potential.
First is Bitcoin - you've got to own some Bitcoin.
Beyond that, I'm in artificial intelligence (AI) and Layer-1 coins. I think these are the most powerful growth segments in crypto, and here in "crypto winter," a lot of those coins are crazy oversold right now.
AI crypto has been around for about five years or so, and they've got all kinds of different applications, like financial technology, "trustless" systems, research, Big Data.
Layer-1 cryptos are extremely important to virtually the entire crypto "ecosystem." They help crypto itself work, like infrastructure. The United States wouldn't be what it is today without highways, ports, air transportation - that's what Layer-1 is to cryptocurrency. Ether (ETH) is a great example of a Layer-1 coin.
Once you have a basket of cryptocurrencies you want to own, and you've pulled the trigger, and they're in your wallet, you sit back and watch them move. Then it's time for a little fancy footwork.
How to Balance a Good Crypto Portfolio
This might come as a shock, but your cryptos... are going to move. Up and down. Sometimes they'll go sideways. It's critically important to watch them and pay attention to their performance. Crypto offers uncommon profit potential, but unlike, say, owning an S&P 500 ETF, it is not a spectator sport.
You've got to be in it to win it.
Let's say you've got five coins in your holdings; there's really no need to own dozens, and that's probably a bad idea anyway.
Coins 1 and 2 are moving slowly higher, while Coin 3 is heading steadily higher. Coin 4 has been heading lower for a few weeks, but Coin 5 has been packing on 10% a week for a while now.
To rebalance that, I'd harvest some gains from Coins 1 and 2 - take some money off the table - and roll most or maybe even all of the proceeds into Coin 5, which is clearly going on a rocket ride. My capital is put to more "efficient" use in Coin 5. Always make sure your capital is working as hard as it can be, producing as much as it can.
Now let's say Coin 4, which is the laggard of the bunch, is a truly unloved coin that I'm convinced has extreme potential. I'll buy more and more of it as it heads lower using simple dollar-cost averaging. When absolute quality is on sale, buy it.
If I'm bringing new capital in, it's almost always going to go into those lower-performing, but high-quality assets. The point is to make sure I'm harvesting some profits, keeping my portfolio balanced, making the most efficient use of capital possible, and giving profit potential lots of room to breathe.
I'd recommend every crypto investor use a rebalancing strategy like this, especially when you consider that a lot of crypto investors don't have a strategy, or, if they do, it's "run screaming for the hills."
History tells us the bulls will start to run again, and the reason we're all here is because we believe crypto and the blockchain will change the world.
Rebalancing is the best way to keep the bears at bay and head off losses. It's very involved, but you've really got to step in and take command of your destiny - this is a way to do it. The good news is, with the ability to buy and sell coins in your pocket, taking control has rarely been easier.
And now is the perfect time to rebalance, because according to experts from the world's leading crypto brain trust, American Institute for Crypto Investors, crypto will never be this affordable again. Here are their top three picks to add to your portfolio now in order to profit from the coming surge.