How much should you put into crypto to make money?

Cryptocurrency investing has become increasingly popular in recent years, with the total crypto market capitalization growing from around $100 billion in early 2017 to over $2 trillion in late 2021. Many investors have made significant returns from crypto, especially from early investments in coins like Bitcoin and Ethereum.

However, crypto investing also comes with substantial risks due to the market’s volatility. So how much should you invest in cryptocurrency if you want to make money? There is no one-size-fits-all answer, as the right crypto investment amount depends on your personal financial situation and risk tolerance.

Factors That Determine How Much to Invest in Crypto

Here are some key factors to consider when deciding how much to allocate to cryptocurrency:

  • Percentage of total investable assets – Most experts recommend investing only a small portion of your total portfolio in crypto, generally 1-5%. This limits your exposure to volatility.
  • Income and savings – Your available income and current savings have a big impact on how much crypto you can afford to buy while still meeting other financial goals.
  • Time horizon – Are you investing for the short term or the long term? Longer time horizons allow you to withstand volatility.
  • Risk appetite – Your comfort with risk will guide what percentage of assets you put into a volatile investment like crypto.
  • Portfolio diversity – Cryptocurrency should be one part of a diversified portfolio to balance out risk.
  • Asset allocation – Consider your overall asset allocation across cash, stocks, bonds, real estate, etc. Crypto can complement this mix.

General Guidelines Based on Your Financial Situation

As a starting point, here are some guidelines for how much crypto to buy based on your financial situation:

If you have limited disposable income

  • Invest only what you can afford to lose, likely 1-5% of your disposable income.
  • Dollar cost average small amounts weekly or monthly vs. lump sum.
  • Stick to larger cap cryptos like Bitcoin and Ethereum.

If you have moderate disposable income

  • Invest 5-10% of disposable income.
  • Dollar cost average and make periodic lump sum investments.
  • Split among large cap cryptos and a few promising small caps.

If you have substantial disposable income

  • Invest up to 15% of disposable income.
  • Make lump sum investments as well as dollar cost average.
  • Diversify across large caps, mid caps, small caps, blockchain ecosystems.

If you have high net worth

  • Invest 1-5% of total net worth.
  • Dollar cost average using recurring buys.
  • Diversify extensively across assets and rebalance portfolio.

How Much Do Crypto Experts Recommend Investing?

Here’s a look at the crypto investment advice from several experts and analysts:

Bill Noble, Chief Technical Analyst at Token Metrics – 1-2% of Total Assets

“My rule of thumb is that if you are conservative, then you should put only 1% of your total assets in crypto. If you are aggressive, then you can go up to about 2% of total assets.”

Bitcoin Investment Firm NYDIG – 5% of Total Portfolio

“Investors should allocate a 5% allocation to digital assets alongside other alternative investments as part of a diversified portfolio.”

Former Hedge Fund Manager Mike Novogratz – 10% of Net Worth

“I’d say 10% of my net worth is in crypto assets. For most people, 5% is probably a better number to start with.”

Wealthfront Crypto Investment Guidance – 2.5% of Net Worth

“We recommend clients consider allocating between 0.5% and 2.5% of their net worth to crypto.”

Coinbase Beginner’s Investment Advice – 5% of Portfolio

“Consider an investment in crypto to be the same as an investment in any other highly volatile asset class. We recommend keeping between 1% and 5% of your portfolio in crypto assets.”

Top Strategies for Investing in Crypto

In addition to how much to invest in crypto, it’s important to use sound investment strategies to maximize your chances of success:

Dollar Cost Average

Dollar cost average by making consistent, recurring investments regardless of price. This smooths out volatility over time.

Lump Sum Invest

Make large, one-time investments when prices dip for better value. But have cash ready and wait for dips.

Rebalance Your Portfolio

Rebalance your crypto allocation back to target when gains or losses push it out of whack.

Hold Long Term

Hold crypto investments for at least 3-5 years, and ideally 5-10 years. Crypto rewards patient investors.

Take Profits

Sell portions of your portfolio during market spikes to realize some gains while retaining core holdings.

Diversify Your Assets

Diversify across cryptocurrencies and blockchain ecosystems to spread risk.

How Much Do You Need to Invest to Make Money in Crypto?

While there’s no set amount that guarantees making money from crypto due to market volatility, here are some estimates:

For moderate income – $500 to $1,000

Investing $500 to $1,000 in cryptocurrency can produce meaningful income if invested wisely. For example, $1,000 invested in Ethereum in 2015 would be worth over $450,000 today.

For substantial income – $5,000 to $20,000

An investment of $5,000 to $20,000 gives you more assets to diversify across promising projects and better absorb volatility. This raises income potential.

For major income – $25,000+

With $25,000+ to invest in crypto, you can build a diversified portfolio with large cap, mid cap, and small cap assets while dollar cost averaging over time.

How Much Do You Need to Invest to Get Rich from Crypto?

Becoming truly wealthy from crypto typically requires large investments, taking on more risk, and investing for the long term:

Moderate wealth – $50,000 to $100,000

With a $50,000 to $100,000 crypto portfolio diversified wisely, it’s possible to achieve gains of 5-10X or more over 5+ years through long-term holds.

Substantial wealth – $100,000 to $500,000

Investing $100,000 to $500,000 gives you the capital needed to make many medium to large cap crypto investments plus hold through fluctuations.

Major wealth – $500,000+

With $500,000+ to invest in crypto, you can make major investments in top tokens early and become an “early whale” with sway over price action.

How Much Do Professional Crypto Investors Allocate?

Here’s a look at how much professional crypto investors allocate to digital assets, according to recent surveys:

2021 Fund Manager Survey by Bitwise/ETF Trends

  • 15% average crypto allocation among 150 U.S. financial advisors
  • Largest allocations were 50% and lowest were 1-2%

Fidelity 2021 Institutional Investor Survey

  • 71% of institutional investors have crypto exposure
  • 80% of crypto investors have 1-2% of assets allocated

CNBC Millionaire Survey 2022

  • 83% of millennial millionaires have crypto investments
  • 17% of total millionaires surveyed hold crypto

As these surveys show, professional investors tend to keep their crypto allocation between 1-15% based on risk tolerance.

How Much Should You Invest in Bitcoin vs. Altcoins?

When determining your crypto asset mix, here are some guidelines on Bitcoin vs. altcoins:


  • 50-70% of crypto portfolio
  • Provides foundational stability as pioneer and market leader
  • Lower risk profile than small cap coins


  • 10-30% of crypto portfolio
  • Leader in smart contract blockchain ecosystem
  • Still has growth potential


  • 5-20% of crypto portfolio
  • Adds higher growth potential
  • Spread across multiple promising projects

Most experts recommend a heavy allocation to Bitcoin for stability, with smaller portions in Ethereum and higher risk altcoins.

How to Manage Your Crypto Investments

Once you make your initial crypto purchases, you need to effectively manage your holdings over time. Here are some tips:

1. Use dollar cost averaging to continually invest.

Make regular, recurring buys into your chosen cryptocurrencies regardless of price. This helps reduce risk over time.

2. Rebalance your portfolio regularly.

If crypto gains push your allocation too high, take some profits and rebalance back to target levels.

3. Update holdings based on fundamentals.

Research projects added to your portfolio and sell any where fundamentals have weakened significantly.

4. Take partial profits on spikes.

Consider selling 20-30% of your position when investments experience sudden, sharp gains to realize returns.

5. Hold most funds in cold storage.

Keep the majority of holdings in offline cold storage for security, only keeping small trading amounts on exchanges.

Common Beginner Crypto Investment Mistakes

It’s important to avoid these common crypto investing mistakes beginners often make:

Investing Too Much

Putting too much capital into volatile assets greatly increases your risk. Cap crypto at 5-10% of your portfolio.

Chasing Pumps

Don’t invest in assets simply because the price is spiking. Thoroughly research fundamentals first.

Getting Emotional

Don’t panic sell during dips or buy simply out of FOMO. Make rational, research-backed decisions.

Forgetting About Taxes

Remember to account for capital gains taxes on any crypto profits when calculating your total return.

Not Securing Holdings

Make sure to use cold storage and safe encryption to secure holdings from theft or loss.


Determining how much to invest in cryptocurrency is an individual decision based on your financial situation, risk tolerance, and investment timeline. As a highly volatile asset class, most experts recommend allocating only 1-10% of your total portfolio to crypto as part of a diversified investment strategy. By dollar cost averaging into a mix of assets over a long time frame, you can gain crypto exposure while mitigating some of the inherent risk.

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