Crypto and Real Estate: Building a Barbell Hedge

I hold volatile assets (crypto) and slow, cashflowing assets (rentals) for different jobs. The trick is letting each leg do its job without forcing them into the same risk bucket.

Roles in the Portfolio

• Crypto: asymmetry, liquidity, high beta. Treat as venture-like.
• Real estate: cashflow, tax shelter (depreciation), slower appreciation.

Barbell Rules I Use

• Size crypto so a drawdown doesn’t force a property sale.
• Use real estate cashflow to smooth volatility, not to lever more crypto.
• Keep reserves in boring assets (T-bills) for both legs.

Workflow: From Wallet to Roof

Crypto gains? → realize partial → move to fiat/T-bills → fund reserves → deploy to rehab/down payment
Rental cashflow? → build 3-6 month reserve → allocate surplus to DCA crypto or CapEx
Rule: never co-mingle operating reserves with speculative leg

Developer’s Angle

• Track both legs in a dashboard: yield, volatility, and correlation over time.
• Tag inflows/outflows; separate operating reserves from speculative capital.
• Automate alerts: if DSCR dips or reserves fall, pause speculative buys.

Utah Lens

Silicon Slopes income can be tech-heavy; barbell helps hedge sector risk. Keep housing bets conservative: underwrite higher taxes/insurance, seasonality, and realistic rent growth.

Takeaway

Crypto and real estate can coexist if each has a role: one for upside, one for stability. Separate reserves, watch sizing, and let time do the heavy lifting.