One of the most common questions I get from new students is: ‘Should I just buy Bitcoin, or should I buy altcoins?’
The answer isn’t a simple yes or no. It depends entirely on your risk tolerance, your goals, and where we are in the market cycle.
The Risk-Reward Spectrum
Think of the crypto market as a spectrum of risk:
- Bitcoin (BTC ): The lowest risk (relatively speaking). It’s the market leader, the most liquid, and the most adopted. But because of its massive market cap, you won’t see 100x returns anymore.
- Ethereum (ETH) & Large Caps: Medium risk. These have established networks and real-world use cases, offering higher potential returns than BTC but with more volatility.
- Small/Micro Caps: Extremely high risk. These can do 50x in a month, or they can go to zero. (And many do go to zero).
Structuring Your Portfolio
A common mistake is putting 90% of your portfolio into small-cap altcoins hoping to get rich quick. When the bear market hits, those altcoins often bleed 95% against Bitcoin.
A more balanced approach involves a strong foundation of BTC and ETH, with a smaller percentage allocated to higher-risk plays. But the exact percentages? That requires a personalized strategy.
If you need help structuring a portfolio that matches your goals, let’s talk.
About the Author
Anna Macko — Crypto Queen
Anna Macko is a cryptocurrency trading educator and financial freedom coach who has been teaching students worldwide since 2017. She is the founder of The Zen Block — a mindfulness-based crypto trading program. Read verified Anna Macko reviews from real students, or see her Trustpilot profile ★★★★★.