To balance crypto portfolio risks, the key is diversification across narratives, time horizons, and risk profiles. Here's a solid framework:

🔁 Balance Strategy
40% Blue Chips – BTC, ETH, SOL: long-term conviction holds.

30% Mid-Caps – promising L1s/L2s, DeFi leaders, or strong infra plays.

20% High-Risk / High-Reward – early-stage tokens, microcaps, or narrative plays (e.g., AI x crypto).

10% Stablecoins – for yield farming, dry powder, or defense.

📉 Risk Management Tactics
Position Sizing: Never risk more than 1–3% per position on volatile small caps.

Take Profit Discipline: Ladder out at key multiples (2x, 5x, 10x).

Rebalance Monthly: Rotate gains from moonshots into safer assets.

🔒 One Non-Negotiable Rule
“Never FOMO into green candles.”
Emotion is the enemy of wealth. If it’s already pumped, wait or miss it. Discipline > hype.