Crypto may be more mainstream than ever, but that doesn’t mean Americans are sleeping well after buying.
A recent study by the National Cryptocurrency Association revealed that 55 million Americans now invest in cryptocurrencies. (1)
“Some use it to invest in their financial future, for art and sports, and more are simply curious and testing the waters,” the NCA said in the report. “Also, many people are already using crypto to make everyday purchases.”
But not everyone is going with confidence. A recent Gallup poll (2) found that a strong majority of respondents viewed cryptocurrency as a threat, with 55 percent saying it was “very dangerous” and nearly another third saying it was “somewhat dangerous.”
For good reason: Many investors have already been through multiple crashes. A 2022 collapse that wiped out nearly $2 trillion in market value, and a price refresh (3) can’t help.
This tension — millions jumping in, millions remaining skeptical — says a lot about where crypto stands today. The excitement is real, but so are the nerves.
“The bottom line is, bitcoin is now for normalcy,” Steve Sosnick, chief strategist at Interactive Brokers, told CNN. “As a result, normals are looking at it as another speculative asset in their portfolios…it’s being treated like a mainstream volatile investment.”
Whether you’re a ‘norm’ investor or someone who believes crypto is the future, we’ve got some tips on how to prepare for investing in this alternative currency, including bracing yourself for the highs and lows.
The appeal of crypto has always been tied to its huge upside potential. Bitcoin has hit all-time highs in multiple cycles. New tokens sometimes increase by hundreds of percent within weeks. Ethereum, Dogecoin and Solana each had periods when early adopters walked away with massive gains.
But that volatility is what makes crypto inherently more risky: coins can lose half their value in a matter of days. Platforms may fall. Hacks (4), fraud and regulatory crackdowns (5) also continue to shake up the market.
The possibility of increased participation does not necessarily mean that crypto has become safer. A study by Security.org found that 40 percent of people who said they owned cryptocurrencies also reported that they did not believe the technology was safe and secure. (6)
“There is good reason to be cautious,” said the report’s authors. “One in five respondents who currently own cryptocurrencies say they’ve had trouble withdrawing their funds from custodial platforms at some point.”
Crypto can complement a broader investment strategy, but it probably shouldn’t replace one. Financial planners generally recommend keeping crypto exposure between 1% and 5% of a portfolio (7), given its volatility.
Diversification helps manage these risks. Mixing crypto with stocks, bonds, real estate and cash reduces the impact of any asset crash. This can cushion your losses and stabilize long-term profits, while helping prevent emotional decision-making, such as panic selling during big dips.
Read more: Here it is The Quiet Portfolio Shift Many Wealthy Investors Are Making in 2026. Should you consider it too?
New investors often buy into crypto during high-flying moments, only to panic when prices reverse. But crypto history shows that huge drops can counter huge gains. That’s why experts say investors need to expect volatility from day one.
Some practical strategies can help. Start with dollar cost averaging, which involves investing fixed amounts on a regular schedule to help smooth out market fluctuations.
You also want to consider the long-term horizon. Crypto is not a short-term savings vehicle. Treating it like a high-risk, high-reward asset helps set realistic expectations.
And knowing your exit strategy is crucial: knowing when to sell or hold helps avoid decisions driven by headlines or hype.
Crypto may be easier to buy than ever, but it still exists in a fragmented ecosystem. Tokens differ significantly in purpose (8), technology, and risk level (9), and exchanges differ in security and oversight.
Before investing, consider:
Purpose: What does a coin do? Who is behind it? Does it solve a real problem?
Exchange Security Check: Look for exchanges with strong track records, strong insurance protections and transparent operations.
Avoiding Hype-Driven Bets: Many investors who have lost money in the past are buying tokens without knowing what they are buying.
Safely storing assets: Hardware wallets or “cold storage” add an extra layer of protection against hacks.
We rely only on peer-reviewed sources and reliable third-party reporting. For details, see our Editorial ethics and guidelines.
National Cryptocurrency Association (1) ; Gallup (2) ; CNN (3) ; Bloomberg (4) ; KPMG (5) ; security.org (6) ; wealthmanagement.com (7) ; Finra (8)
This article provides information only and should not be construed as advice. This is provided without warranty of any kind.
