Every few months (at least) I like to go through my entire portfolio to evaluate and rebalance it. I do this manually by going through each of my wallets and logging all of my tokens (above a certain threshold) in a spreadsheet. Then I go through line by line and think about how much conviction I have in each token and write that down too, bucketing everything into one of four categories:
High Conviction — self explanatory, these are the tokens I like the most
Medium Conviction — a notch below the above, I question whether it’s still worth holding these, but usually have at least a reasonable thesis for holding and/or need to do some more research to decide if I want to cut or not
Low Conviction — if I think this about anything, it immediately gets liquidated; what’s the point in holding something I don’t have conviction in?
Moonbag — this is for the long shots, the things I think there’s at least a reasonable chance will do a massive multiple, but I also recognize will most likely go to zero. I try not to allocate too much to this category.
I find this extremely helpful in getting a good understanding of where all my crypto is, as well as for helping me trim the fat.
The next thing I do is sort by the % held of each token, and look for any anomalies.
For example, I might discover there there is a token I only have medium conviction in that makes up a higher % of my portfolio than something I have high conviction in. In these cases, I will usually sell off the medium conviction position a bit.
I do the same with moonbag positions — this is a great time to evaluate that meme coin you punted on that has been doing really well for you. It can be a wakeup call to see your shitcoin sitting at 15% of your portfolio, higher than some of the things you have the most conviction in.
I also like to sort by chain and see how diversified I am on that front. Am I comfortable having 80% of my portfolio on the EVM? Or 35% on Solana? Or only 5% on Solana? Etc. At various times over the last few years I have had all of these situations, and even some more extremes.
By far the most extreme example for me was in late 2021 / early 2022 when I had over 99% of my portfolio on ETH, with almost all of that in NFTs. I wasn’t doing this exercise back then; if I was, I have to think I would have done a better job of selling and taking profits! It’s easier to act on these type of things when they’re staring you right in the face.
Alright now let’s take a look at the full list, and then I’ll break down all 9 tokens that I hold with high conviction which (spoiler alert) is what I consider 4 of the “majors” and then 5 “alts”.
