Correlation matters
Diversification works best when assets aren’t perfectly correlated. Two coins that move in lockstep offer less risk reduction than genuinely uncorrelated picks.
Risk pairs
Crypto Portfolio Diversification Calculator
Holdings
Enter any combination of assets. Prices are manual; we don’t fetch markets. Empty rows are ignored.
Enter holdings and click Calculate.
How to read the results
- Allocation % shows each asset’s share of total value.
- Δ vs. target compares current value to an equal-weight target (same value per asset). Positive = trim; negative = add.
- Equal weight is a simple heuristic; you can pick your own target split and adjust manually.
- Prices are static inputs here. Refresh them regularly if you’re tracking live portfolios.
Fun facts about diversification
Costs creep in
Every rebalance can incur fees and tax events. Small, infrequent trims around a band (e.g., ±5%) often reduce friction compared to constant tinkering.
Friction
Stablecoins dilute volatility
Holding some stablecoins lowers overall portfolio variance, but adds issuer and peg risk. Balance volatility comfort with counterparty considerations.
Vol control
Equal weight != optimal
Equal weighting is easy to reason about but isn’t always optimal. Some investors tilt by conviction, market cap, or risk to align with their thesis.
Heuristics
Rebalance timing
Calendar-based (e.g., quarterly) and threshold-based (band) rebalancing each have trade-offs. During high volatility, band triggers can fire more often.
Cadence
Deep dive: reading allocations and rebalancing
Diversification is about spreading risk across assets that do not move in perfect unison. In practice, crypto assets often have high correlations during broad market moves, but the degree of correlation, liquidity, and idiosyncratic risk varies by sector (L1s, DeFi, infrastructure, exchanges, stablecoins, real-world assets). This calculator gives you a snapshot of where your value sits today and a simple equal-weight target so you can see how far you’ve drifted.
Allocation percentage equals asset value ÷ total portfolio value. Concentration risk rises when one position dominates the pie. A large allocation can be intentional (high conviction, lower perceived risk), or accidental (a big winner that wasn’t trimmed). An equal-weight target isn’t “optimal”; it’s a neutral benchmark that exposes how far any holding is from the center. You can substitute your own target mix (e.g., 60/40 “majors vs everything else,” or 70/20/10 “BTC/ETH/other”).
Rebalancing has trade-offs. Frequent rebalancing can realize gains, incur taxes, and rack up fees. In volatile markets, a band or threshold approach (rebalance only if a position breaches ±5–10% of target) can reduce churn compared to a strict calendar. Conversely, calendar rebalancing (monthly/quarterly) is predictable and can be simpler to execute. Stablecoins damp volatility and provide dry powder, but they also introduce counterparty and peg risk; consider that when sizing.
Because this tool uses manual prices, it never calls APIs or stores data. That keeps it private and fast, but it also means you should refresh prices before making decisions. If you want to model how allocations move when one asset rallies or falls, adjust the price inputs to simulate scenarios. You can also add duplicate rows for the same asset with different cost bases if you’re thinking in lots; the calculator will still aggregate value and percentage.
Diversification cannot eliminate risk. It can reduce the impact of any single position and smooth volatility, but market, liquidity, smart-contract, counterparty, regulatory, and operational risks remain. Use this calculator as a planning aid, not investment advice. Always verify costs, taxes, and trading fees before rebalancing.