🏗️ Part 14: Portfolio Construction
Topic: The 50-30-20 Rule for Balanced Risk
Investing is not about picking one winner; it is about building a "ship" that can survive a storm. Experts use a specific allocation rule to ensure they grow their wealth without risking everything.
1. The 50%: The Bedrock (Safe Growth)
50% of your portfolio should be in the "Blue Chips": Bitcoin (BTC) and Ethereum (ETH).
They are the most stable and have the highest survival rate. They act as the "anchor" of your portfolio.
2. The 30%: The Engine (High Potential)
30% of your portfolio goes into "Mid-Cap" Altcoins.
These are established projects with real utility (e.g., Solana, Chainlink, or Layer-2s). They move faster than Bitcoin and provide higher returns during a Bull Market.
3. The 20%: The Moonshots (High Risk)
20% of your portfolio is for the "Wild Cards."
This includes new DeFi projects, NFTs, or small-cap "gems."
The Rule: Expect this 20% to potentially go to zero, but if one "moons" (gains 10x or 50x), it can double your entire portfolio value.