How do I know my allocation is too big?

If normal volatility causes panic or sleep disruption, your size is likely above your risk tolerance.

Should crypto replace index exposure?

For most long-term plans, no. Treat it as optional satellite risk, not a core replacement.

Crypto vs Traditional Assets: Build a Balanced View

A balanced framework for deciding where high-volatility assets fit in a long-term portfolio.

Max Tan

The Compound Club Contributor · 14 Feb 2026 · 10 min read

High-volatility assets can deliver outsized upside and outsized drawdowns. Both sides must be modeled before sizing.

If your position size causes panic behavior at expected drawdowns, the size is too large.

Core holdings should support long-term plan stability. Satellite holdings can express higher-volatility conviction with capped risk.

This structure lets you participate in upside narratives without destabilizing your base portfolio.

Never allocate emergency liquidity to highly volatile assets. Liquidity mismatch is a common hidden risk.

Your sizing should reflect when you might realistically need the money.

Define entry size, max allocation cap, and rebalance conditions before exposure. Rules reduce reactive behavior.

If you cannot write the downside plan, you are not ready for the position.

Potentially, but only as a small satellite allocation with clear risk limits.

Max Tan

The Compound Club Contributor · 14 Feb 2026 · 10 min read

Youth-first finance educator focused on actionable Singapore context.