Creating a Written Investment Plan: Your Crypto Constitution

Your Crypto Constitution

I call it a "Crypto Constitution" because, like a constitution, it is a set of rules written during calm, rational times that govern your behavior during chaotic times. Every serious investor I know has one. Every investor who has blown up their account did not.

Why You Need a Written Plan

When the market is crashing 30% and fear is everywhere, you will not make rational decisions. When Bitcoin pumps 50% in a week and euphoria takes over, you will not make rational decisions. The plan you write now, when your head is clear, is what should guide you during those moments.

What to Include in Your Plan

1. Investment Thesis

Write down WHY you are investing in Bitcoin. Be specific:

• What do you believe about Bitcoin's long-term future?
• What would change your mind? (This is important)
• What is your time horizon?

2. Allocation Rules

• Maximum percentage of net worth in crypto
• Allocation split between BTC, ETH, altcoins
• Maximum position size for any single altcoin

3. Buying Rules

• DCA amount and frequency
• Conditions under which you might buy extra (e.g., 40%+ crash)
• Maximum extra amount for opportunistic buys

4. Selling Rules

• Profit-taking levels (at what gains do you sell how much)
• Stop-loss levels for individual positions
• Conditions under which you sell everything

5. Emergency Rules

• What to do during a market crash (usually: nothing, keep DCA-ing)
• What to do during extreme euphoria
• When to reduce positions due to personal financial changes

Sample Template

Section	My Rule
Total Crypto Allocation	Max 15% of investable assets
BTC Allocation	80% of crypto portfolio
DCA Amount	5,000 LKR per week
DCA Frequency	Every Monday
Profit Taking	Sell 20% at 3x, 20% at 5x, hold 60% indefinitely
Stop Loss (Altcoins)	Sell if down 30% from entry
Emergency	If I lose my job, pause DCA but do NOT sell existing holdings
Review Frequency	Quarterly

Review and Update

Your plan is not set in stone. Review it quarterly and adjust based on:

• Changes in your financial situation
• Changes in your risk tolerance (usually increases with experience)
• New information that affects your thesis

But never change the plan in the heat of the moment. Wait at least 48 hours after a market event before making any changes.

Get more planning tools at our tools page.

Disclaimer: This is educational content only and is NOT financial advice. The template above is an example, not a recommendation. Your investment plan should reflect your unique financial situation, goals, and risk tolerance. Consider consulting a financial advisor.