A layer-1 network (L1) is another name for a base blockchain. Bitcoin, Ethereum, Solana and BNB Smart Chain are all layer-1 networks. We refer to them as layer-1 because these are the main networks within their ecosystem. Layer-2 blockchains might be built on top of these L1s in order to scale the base layer and improve on some of its functionalities. Ethereum for instance suffers from high transaction fees especially when the network is busy, that’s why L2 solutions like Immutable X and Arbitrum were created. Solana, despite its fast transactions, has been suffering from persistent congestion issues but no L2 solutions have been implemented yet. Anyways, in both cases, we colloquially refer to these base blockchains as “L1s”. Most of them support smart contracts, and encompass a plethora of projects (ecosystem coins) but I would avoid those in such bearish times!

When all markets are crashing hard, there’s no time for degen plays! A big chunk of my portfolio should always be assigned to the most pristine and secure L1 of them all: Bitcoin. The second big chunk should be split between the most promising L1 cryptos in proportion to the project size and probable risk. That’s why I curated a list of my favorite Layer-1 blockchains and their respective tokens separated into three tiers. I use these tiers to simplify my crypto portfolio allocation in terms of risk management. It goes without saying that this is no financial advice and that I’m just a noob trying to navigate this space like most of you, but I wanted to share, discuss and learn. Alright, that was a long preamble! Here are the L1 tiers, how I perceive their relative risk and how I’d allocate them:

1 / GOD TIER (SAFE BET, 50% of L1 allocation)

• Ethereum $ETH (duh)

2/ OG TIER (MILD RISK, 30% of L1 allocation)

• Solana $SOL
• Cosmos $ATOM
• Avalanche $AVAX
• Polkadot $DOT
• Cardano $ADA

3/ MIDDLE TIER (ELEVATED RISK, 15% of L1 allocation)

• Fantom $FTM
• Kadena $KDA
• Harmony $ONE
• Near $NEAR
• Algorand $ALGO

4/ SAVAGE TIER (HIGH RISK, 5% of L1 allocation)

• Moonbeam $GLMR
• Moonriver $MOVR
• Tezos $XTZ
• Vechain $VET
• Thorchain $RUNE**
  **

Note: Markets change, projects change, and we should adapt accordingly. Let me know your thoughts on my picks and their allocations. I want to gradually add info on each project, the pros and cons, and why they could be relatively safe/risky/promising..etc. I would appreciate any other notes or suggestions you have!

Cheers!