Comparing cryptocurrency with mutual funds, gold, or real estate would be foolish. But should you ignore it completely? I don’t think so. Let me explain why and how you should approach this emerging asset class.
Why Crypto Deserves Your Attention
1. The Returns Are Hard to Ignore
Bitcoin has delivered exceptional returns over the years:
- 4x returns in 3 years
- 6-7x returns in 5 years
- A staggering 150x returns in 10 years
While past performance doesn’t guarantee future results, these numbers show why investors are paying attention.
2. Major Financial Institutions Are Getting Involved
Global banking giants like BlackRock, Fidelity, and Invesco—some of the world’s top 10 largest financial institutions—have already launched crypto ETFs. Meanwhile, major banks like JP Morgan and Morgan Stanley are planning their crypto offerings.
This institutional adoption signals that cryptocurrency is moving from the fringe to the mainstream.
3. The Market Size Is Significant
Bitcoin’s market capitalization is around $1 trillion, which equals approximately 25% of the entire Indian stock market. That’s a massive number that’s impossible to ignore.
With more banks planning to include Bitcoin in their product offerings, analysts predict potential growth to $1 million per Bitcoin in the future.
Clearly, ignoring this asset class entirely may not be wise. The key is to capture this opportunity in a regulated and sensible manner.
How to Invest in Crypto Safely
Treat It as a Moonshot Opportunity
As I mentioned earlier, comparing crypto with traditional investments like mutual funds, gold, or real estate is a mistake. Cryptocurrency is a moonshot opportunity and should be treated as such.
Follow the Small Allocation Rule
Just as you might allocate a small percentage to small-cap stocks, you should allocate an even smaller percentage to moonshot opportunities like crypto.
My personal approach: I currently have 0.1% of my portfolio in crypto and plan to increase it to 5% by the end of 2026. This keeps my risk manageable while giving me exposure to potential upside.
Invest Small Amounts Regularly
Just as lump sum investing in stocks can increase risk, the same applies to crypto—but even more so. Unlike stocks, cryptocurrencies don’t have P/E ratios or traditional valuation metrics.
My strategy: Buy small amounts during market dips. This approach helps you:
- Keep your allocation under control
- Average out your buying cost
- Reduce emotional decision-making
My Investment Mindset
I see crypto as a high-risk, high-reward asset. There are two possible outcomes:
- It could go to zero
- It could deliver 10x returns in the next 5 years
I invest in crypto with this mindset, using only the amount I’m comfortable losing completely.
The Bottom Line
You shouldn’t miss out on good opportunities, but you also shouldn’t bet your entire financial future on them.
Key takeaways:
- Don’t ignore crypto completely—institutional adoption is real
- Allocate only a small percentage of your portfolio (1-5%)
- Invest small amounts regularly, especially during dips
- Only invest money you can afford to lose
- Treat it as a moonshot, not a core investment
The goal is to participate in this potentially transformative asset class while protecting yourself from catastrophic losses. Invest wisely, invest small, and never risk more than you can afford to lose.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are subject to market risks. Please consult with a financial advisor before making investment decisions.
What’s your take on cryptocurrency investing? Share your thoughts in the comments below!