When it comes to investing in crypto, one of the most important factors to keep in mind is asset allocation. It can determine how fast your portfolio grows over time, as well as how it performs during periods of extreme market volatility.

With that in mind, here’s a quick three-step approach to crypto asset allocation.

Step 1: Choose your overall portfolio mix

The first step is to decide how much of your overall portfolio should be allocated to crypto. As a rule of thumb, the optimal portfolio allocation to crypto will be somewhere in the range of 1% to 5%.

If you choose a percentage lower than that, you are losing out on the upside potential of crypto. And if you choose a percentage higher than that, you are likely introducing far too…