LEVEL: BEGINNER/INTERMEDIATE
READ TIME:  10—12 MIN

The four-year crypto market cycle repeats repeatedly.

Things moved pretty fast once they got going back in 2021 —as 2025 begins, we can all see things gearing back up again.

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The value of digital assets rises and falls in predictable cycles.

Every four years, risk assets like crypto outperform many people’s  wildest expectations. Without going into great detail there are clear indicators showing that we might be headed upwards: the Bitcoin halving, the newly launched Bitcoin and Ethereum ETFs, the US Presidential Election, lower interest rates and the expansion of the M2 money supply are each  playing a key part (once again).

We’re already seeing this pattern repeating itself.

• $BTC has surpassed its all-time high of over $107,000 USD.
• $SOL also reached all-time -highs in Q4 2024.

The BTC/USD chart is very similar to the setup we saw in 2020—2021.

Compare that to 2024
(Don’t forget that Bitcoin ETFs launched January 2024)

To avoid panic and FOMO it’s always a good idea to get your portfolio and storage organized early. And you’ll need to stay on op of this as things tend to evolve rather quickly in crypto.

This Guide outlines strategies for creating a crypto portfolio primed for 2025.

We’ll dive into balancing risk, key crypto narratives and asset allocations.

These insights and ideas are drawn from research, conviction and a lot of first-hand experience. You’ll need to do all this for yourself but this Guide is a great starting point.

DYOR/NFA disclaimer is in effect.

1

Diversification

Crypto is inherently high-risk, so smart diversification is key. Within your portfolio, consider balancing high-risk/high-reward assets with more stable options. Bitcoin (BTC), obviously isn’t as volatile as it used to be—it’s now widely seen as a “blue-chip” in crypto. Institutions are allocating 1, 2 or even 3% of their balance sheets to BTC.

While BTC’s long-term growth potential looks very strong compared to fiat, 5–10x returns are less likely due to its current market cap of over $2 trillion.

When building your portfolio, decide on the percentage you want to allocate to BTC based on your risk tolerance. Beyond BTC, explore options that may outperform it, such as emerging altcoins. Portfolios can range from conservative “blue-chip” holdings to high-risk picks like the latest meme coins on platforms like pump.fun.

OG investors like Warren Buffet use an approach where they hold a large percentage of their assets in safer, more predictable assets and a percentage that aims for higher returns with more risk. 

This has worked out pretty well for him and it seems wise to consider the same thing here.

2

Key Crypto Narratives
2024-25

Narratives change over time, all the time.

Don’t expect that what’s important right now will still be relevant in 3-4 years.

The crypto market is divided into several major categories, each with its own trends that rise and fall with every market cycle. In 2021, NFTs, Metaverse projects, and Play-to-Earn gaming were the big narratives. Investors who rode these waves early and took profits did very well. But for those still holding tokens in these sectors—some now down 80-90%—the lesson has been clear: take profits.

Lesson learned: Take Profits.

If you want, you can review the top categories on sites like CoinGecko or CMC. It gives you a sense of what’s there and what’s doing well or not at any given time. It’s a lot to look at and it’s pretty overwhelming.

For 2025, these are the key narratives voted most likely to succeed:

1. Layer 1s and L2s
2. A.I. Cryptos
3. Meme Coins
4. Web 3 Gaming
5. Real World Assets

3

Detailed Portfolio Breakdown

My portfolio strategy for 2024–25 can probably best be described as “Balanced Growth.”

I’m focused on a mix of blue chips and proven projects, with some exposure to emerging narratives that I think have solid potential. A few holdovers from previous cycles remain here, backed by conviction, alongside a small percentage of high-risk, high-reward assets.

This isn’t a trading setup; it’s a long-term portfolio designed to hold for a specific timeframe. I plan to review allocations quarterly but don’t expect major adjustments.

Everything is tracked via CoinGecko for easy monitoring.

Exit Strategy
My target is to sell most of these positions in about a year (summer/fall 2025) to capitalize on projected market peaks.

While this outline discloses as my personal plan, remember to DYOR (Do Your Own Research) and build your own strategy.

Here’s the breakdown by category and allocation (as of 11/2024), with top picks highlighted in each group:

Layer 1 — Layer 2s

10% of Total Portfolio Allocation

Layer 1s are foundational blockchains that operate independently and process all transactions directly on their own network.

Layer 2s improve speed and reduce costs by processing transactions off the main networks and then recording them back on the L1 chains.

Why you need to include them:
Although they aren’t exactly key narratives, they form the foundational infrastructure of the entire blockchain ecosystem, driving scalability, security, and future growth across the entire market.

These are my picks:

1. NEAR Protocol
2. Fantom ($FTM – SONIC)
3. Avalanche ($AVAX)
4. SEI
5. Theta
6. Celestia ($TIA)
7. ZEUS