Crypto influencer and analyst Lark Davis is detailing his ideal high-risk, high-reward crypto portfolio for maximum gains in 2021.
In a recent video, Davis highlights a collection of nine cryptocurrencies that could compose a risky, and yet highly profitable 2021 crypto portfolio.
Although Davis suggests some riskier capital allocations, he also recommends that crypto investors hold the two top crypto assets by market cap and two medium-cap altcoins to minimize risks within a highly speculative portfolio.
“Even with such a portfolio though, I still think it’s a good idea to have exposure to Bitcoin at 20% and exposure to Ethereum at 10%. Now, this is going to help just kind of reduce that danger within this portfolio while also allowing for a lot of growth with the other 70% of the coins. Then, we’re actually going to bring in two medium risk altcoins: so 10% of Uniswap’s UNI Token, and 10% into the AAVE token. And again, we’re reducing risk here.”
Davis suggests that one should allocate the rest of the 70% to five lower-cap gems that he believes stand to print major gains over the next year.
“And then for the rest of the portfolio, we’re going to be looking at higher risk coins. So we have some low and medium stuff in there already to kind of reduce the risk in our high-risk portfolio, and then we’re going to go 10% into each of the following five coins.
The first is Injective Protocol (INJ), this is a decentralized exchange protocol. The second is DIA. DIA is an oracle provider much like Chainlink (LINK), but with a much lower market cap. The third is called AXIE Infinity (AXS). This is a Pokemon-like crypto game which is super interesting, super cool. The fourth is Orion Protocol (ORN). Now this is a trading terminal for the crypto market. And the fifth is Matic [Network] (MATIC) which is the premier layer two scaling solution for Ethereum.”
Davis notes that even though these coins are relatively risky, they’re nothing compared to much of what’s out there in the crypto market.
“People are investing in some pretty crazy stuff in the crypto market right now. I’ve seen people FOMOing into just insane coins with anonymous teams and they get rug-pulled and lose all their money. Bad stuff, right. All the coins I mentioned, they have professional transparent teams. They’re either currently having a working product or they’re soon going to have a working product, so it’s all worth consideration there.”
The crypto analyst also emphasizes that investors should have an exit strategy for their investments and a plan on how to take profits, especially if their assets go parabolic.
“As a final note here before I finish the video, you need to have a clear plan for taking profits with your portfolio. Because if your portfolio moons and you get super rich on paper, but you don’t click the sell button then get ready to watch your big gains all disappear just as quickly as they came. Don’t be that guy. Don’t let that happen to you.”