Crypto Portfolio Health Check: A Quick Risk Score

Score your crypto portfolio from 0 to 100 on concentration, small-cap exposure, stablecoin buffer, exchange custody and leverage, with plain-English findings.

How to use this calculator

Enter each holding on its own row with its current value in US dollars, not what you paid for it. The check looks at today’s exposure, so market value is what counts. You can add up to 10 rows, and rows without a value are skipped.

Pick the type that fits each holding best:

• Large-cap: the largest and most traded coins, such as BTC and ETH.
• Mid/Altcoin: established projects outside the top few.
• Small-cap/New: small market caps, recent launches and meme tokens.
• Stablecoin: tokens designed to track a currency such as the US dollar.

Then enter the share of the portfolio you keep on exchanges or custodial apps, and how often you use leverage (margin, futures or loans against crypto). The score, KPI tiles, findings and donut chart update as you type. Each finding names the guide that explains it, and the seven vital signs of a healthy portfolio put all five checks in context.

Tip: If you hold more than 10 coins, merge the smallest positions of the same type into one row. The index moves only slightly, and in the cautious direction, because merged weights score a little more concentrated than separate ones.

How it’s calculated

T = v1 + v2 + ... + vn wi = vi ÷ T HHI = w1² + w2² + ... + wn² N_eff = 1 ÷ HHI Score = 100 − penalties (kept between 0 and 100)

Here vi is the dollar value of holding i, T is the total, wi is each holding’s weight as a fraction, HHI is the Herfindahl-Hirschman Index and N_eff is the effective number of holdings. The US Justice Department uses the same index to measure market concentration but squares percentage shares, so its scale runs to 10,000. This tool uses fractions, so an HHI of 0.306 here equals about 3,064 on that scale.

The stablecoin and small-cap shares are the summed values of those types divided by T. Penalties are subtracted as follows:

Scores of 70 to 100 are Healthy, 40 to 69 Fair and 0 to 39 At risk.

Worked example

The calculator opens with a hypothetical $11,000 portfolio: BTC $5,000, ETH $3,000, a mid-cap altcoin $1,200, a meme token $800 and a dollar stablecoin $1,000, with 60% held on exchanges and no leverage.

• Weights: 45.45%, 27.27%, 10.91%, 7.27% and 9.09%.
• HHI = (5,000² + 3,000² + 1,200² + 800² + 1,000²) ÷ 11,000² = 37,080,000 ÷ 121,000,000 = 0.306.
• N_eff = 1 ÷ 0.306446 = 3.26, shown as 3.3.
• Stablecoins are 9.09% and small-cap tokens 7.27%, so neither check costs points.

Two penalties apply: −8 because N_eff sits between 3 and 5, and −20 because more than half the portfolio is on exchanges. The score is 100 − 8 − 20 = 72, in the Healthy band. Cut the exchange share to 10% and the score rises to 92. Switch leverage to Frequent instead and it falls to 47, in the Fair band.

Five holdings do not mean five-way diversification here. BTC and ETH make up 72.7% of the value, which is why the portfolio counts as about 3.3 effective holdings. Our explainer on crypto portfolio concentration risk works through more HHI examples, and how many cryptocurrencies to hold looks at what adding positions really changes.

Limitations

• The thresholds are rules of thumb chosen to give a simple signal. They are not an industry standard, and a score says nothing about whether any holding suits your goals.
• Concentration is measured by value only. Coins whose prices tend to move together add less diversification than their count suggests, and the tool cannot see price behavior.
• Type labels are your judgment. A token you label “Mid/Altcoin” can trade like a small cap when the market is thin.
• Stablecoins count as a buffer, but a stablecoin is only as stable as its design and backing.
• Custody is a single percentage. Where the rest sits, from a phone wallet to a hardware wallet, matters too.
• The score is a snapshot. Weights drift as prices move, and one holding that rallies hard can push the score down, which is the problem rebalancing is meant to handle.

This content is for education only and is not financial, investment, tax or legal advice. Crypto assets are volatile and you can lose money. Examples use hypothetical numbers. See our disclaimer and editorial policy.