How Much Should You Invest in Bitcoin?

If you are going to invest, how much is too much? Here are some of the suggestions from financial coaches:

1. Dan Wagner: Invest less than 10% of your portfolio in crypto.

Dan Wagner, the founder of Exponential Growth Financial, says that “investors should have no more than 10% of their overall portfolio invested in crypto.”

Dan also notes that you can’t use crypto to pull you out of huge debt piles. If your cash flow isn’t stretching to the end of the month, cryptocurrency isn’t the solution to that problem.

2. Salah-Eddine Bouhmidi: 1–5% is useful for crypto.

Salah-Eddine Bouhmidi, Head of Markets at IG, says “a classically oriented investor should keep the risk of highly speculative assets small. Depending on the risk profile, 1–5% of the portfolio is useful for physical exposure to cryptos.”

Salah-Eddine also notes that risky investors may use up to 20%, but that risk becomes extremely large and the portfolio is exposed to great volatility.

3. Vrishin Subramaniam: 2–5% of your net worth

A recent Time article revealed Vrishin Subramaniam, founder, and financial planner at CapitalWe, adds, “Two to 3% is usually what we see for most clients who are not tracking crypto markets more than once a week.”

Subramaniam recommends these conservative numbers as part of a wait-and-see strategy until we know more about the long-term performance of crypto.