My biggest mistake of 2025 - crypto allocation
One of my biggest mistakes this year was increasing our crypto exposure.
Going into 2025, I genuinely believed crypto would be one of the strongest-performing asset classes. Based on that conviction, I increased the allocation in the portfolio.
In hindsight, that was wrong.
What actually happened was that AI took the spotlight. Capital flowed away from crypto - the “old hot technology” - and aggressively into AI.
To put some numbers around it:
Bitcoin is down roughly 13% YTD
Ethereum is down roughly 18% YTD
MicroStrategy (MSTR) is down roughly 47% YTD
Despite this, the total portfolio is still up over 25% YTD, which highlights an important lesson.
No matter how confident you are.
No matter how strong your conviction is.
You can still be wrong.
This is exactly why diversification matters.
When it comes to stock market investments, I keep positions relatively small. Typically, no single asset exceeds 10% of the portfolio, unless I am deliberately letting a clear winner run.
As for crypto now - I don’t believe selling at the lows makes sense.
If anything, this looks more like a potential buying opportunity, not a panic moment. I don’t plan to make any changes to our crypto holdings and intend to hold through all of 2026.
Markets tend to move in cycles. After large drawdowns, some form of mean reversion back toward previous highs is common - even if it takes time.
The key takeaway for me this year:
Stay humble, stay diversified, and let time do the heavy lifting.
$BTC$ETH$MSTR (Strategy Inc)... Show More
I see crypto as gambling. There's no scientific way of knowing the actual value of crypto.... Show More
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Sat Feb 14 2026 04:19:23 GMT+0000 (Coordinated Universal Time)
