CHAPTER 18

Building a Portfolio with Currencies and Crypto

Allocation, sizing and rebalancing

Opening question

“How much foreign currency and crypto should I hold?”

In this chapter

Why the currency you spend is the starting point of every allocation
The currency exposure a household already has, often without noticing
How much foreign currency to hold, and whether to hedge it
Crypto as a small satellite around a diversified core
Sizing by risk: capital share versus risk share
Rebalancing rules, their costs and a worked example in VND
An illustrative portfolio for a Vietnamese investor
A simple risk report for monitoring

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 18 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Forex and Crypto Investing: From Theory to Practice (Volume 3, NXW Investment Library).

Read Chapter 1 free Get the full book — [email protected]

Sections of this chapter

18.1 Start from the currency you spend

18.2 The currency exposure you already have

18.3 How much foreign currency?

18.4 Crypto as a satellite

18.5 Sizing by risk, not by capital

18.6 Two simple sizing rules

18.7 Rebalancing: rules and costs

18.8 An illustrative portfolio in VND

18.9 Monitoring: a simple risk report

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