Bitcoin has evolved from a fringe digital experiment to a legitimate asset class attracting attention from Wall Street giants, institutional investors, and everyday savers. As its influence grows, so does the curiosity of mainstream investors wondering: Should I invest in bitcoin? And if so, how?
I’ve always kept my investment strategy simple—index funds, blue-chip stocks, and a “set it and forget it” mindset. But after seeing bitcoin surpass $100,000 in late 2024 and major players like BlackRock endorsing its inclusion in diversified portfolios, I decided it was time to explore whether bitcoin deserved a place in my own portfolio.
To cut through the noise, I consulted three seasoned financial experts: John Haar of Swan Bitcoin, Robert Cannon from Experity Wealth, and David Laut, Chief Investment Officer at Abound Financial. Their insights helped shape a thoughtful, risk-aware approach to entering the world of cryptocurrency.
Is It Too Late to Invest in Bitcoin?
One of my biggest hesitations was timing. With bitcoin’s price surging, I worried I’d missed the boat.
John Haar offered a powerful analogy: “Do you think you’re too late to buy real estate or the S&P 500?” He emphasized that if an asset holds long-term value, timing becomes less critical than consistent participation. “The second-best time is always now.”
👉 Discover how dollar-cost averaging can reduce risk and build confidence in volatile markets.
Instead of betting on a single entry point, Haar recommended dollar-cost averaging (DCA)—investing a fixed amount at regular intervals. This strategy smooths out purchase prices over time and reduces the emotional toll of market swings. I decided to allocate half my intended investment immediately and deploy the remainder gradually over six months.
Robert Cannon echoed this approach: “If you believe in bitcoin’s long-term potential, DCA is the smartest path forward.” For investors focused on holding rather than trading, consistency beats timing.
Determining the Right Portfolio Allocation
Next, I needed to decide how much of my portfolio to dedicate to bitcoin.
David Laut suggested a combined 5% allocation to gold and bitcoin for investors seeking non-correlated assets that hedge against market volatility. Since bitcoin often moves independently of traditional equities, it can enhance diversification.
Cannon noted that many clients view bitcoin as a modern inflation hedge, similar to gold. However, he stressed that allocation should align with personal risk tolerance. His clients’ bitcoin holdings range from 1% to 10% of their total portfolios.
After careful consideration, I settled on a 1% allocation—a small enough stake to limit downside risk while allowing me to learn the space firsthand. This conservative start lets me adjust my strategy as I gain experience.
Bitcoin ETFs vs. Direct Ownership: What’s Best for Beginners?
When it came to execution, I had several options:
- Buy bitcoin directly via a crypto exchange
- Use a self-custody wallet
- Invest through a bitcoin ETF
- Buy stock in bitcoin-focused companies like MicroStrategy
John Haar explained that many hardcore bitcoin advocates prefer direct ownership because it gives full control—no intermediaries. However, this route requires technical know-how and carries risks like exchange hacks or lost private keys.
Cannon and Laut both recommended bitcoin ETFs for beginners. “I’d rather own an ETF,” Laut said. “Then I don’t have to worry about Coinbase getting hacked.” ETFs offer exposure to bitcoin’s price movements without the complexity of managing private keys or navigating crypto exchanges.
Laut also highlighted the importance of regulatory safety. After events like the FTX collapse, using established brokerages like Fidelity or Charles Schwab adds a layer of protection and peace of mind.
👉 See how top investors use regulated platforms to access digital assets securely.
My Final Investment Plan
Armed with expert advice, I crafted a clear game plan:
- Allocate 1% of my portfolio to bitcoin.
- Invest half upfront, then dollar-cost average the rest over six months.
- Use a bitcoin ETF for simplicity and security.
- Reassess allocation after gaining more experience.
I chose the iShares Bitcoin Trust ETF (IBIT)—recommended by Cannon—and purchased it through Fidelity. The process mirrored buying any traditional ETF, with one key difference: Fidelity required me to acknowledge crypto-specific risks and upgrade my investment objective to “most aggressive.”
This step was a sobering reminder: despite its ease of access, bitcoin remains highly volatile. As Cannon put it: “If I told you you could lose everything, how much would you put in there?”
For me, 1% strikes the right balance between curiosity and caution.
Frequently Asked Questions (FAQ)
Q: Can I lose all my money investing in bitcoin?
A: Yes. Bitcoin is extremely volatile and unregulated in many jurisdictions. While it has delivered massive gains historically, it can also suffer steep declines. Never invest more than you can afford to lose.
Q: Are bitcoin ETFs safe?
A: Bitcoin ETFs traded through regulated brokers like Fidelity or Schwab offer strong investor protections. They eliminate custody risks but still expose you to price volatility.
Q: Should I buy bitcoin directly or through an ETF?
A: Beginners should consider ETFs for ease and safety. Direct ownership offers more control but requires technical knowledge and proactive security management.
Q: How much bitcoin should I own?
A: There’s no one-size-fits-all answer. Experts suggest 1%–5% for most investors, depending on risk tolerance. Some go higher; others avoid it entirely.
Q: Is now a good time to buy bitcoin?
A: Timing the market is nearly impossible. If you believe in its long-term value, starting small with dollar-cost averaging is a prudent strategy.
Q: What are the tax implications of owning bitcoin?
A: In most countries, bitcoin is treated as property. Buying, selling, or trading can trigger capital gains taxes. ETFs simplify reporting compared to direct ownership.
Final Thoughts: Start Small, Stay Informed
Bitcoin isn’t just hype—it’s increasingly becoming part of the financial mainstream. But with great potential comes great risk.
By consulting experts, defining my risk tolerance, and choosing a measured entry strategy, I’ve taken my first step into digital assets without overcommitting.
Whether you're curious about inflation hedging, portfolio diversification, or simply want exposure to innovation, bitcoin deserves thoughtful consideration—not impulsive decisions.
👉 Learn how disciplined investors are integrating digital assets into long-term strategies today.
The key isn’t chasing returns—it’s building resilience through informed choices. And for me, that starts with 1%.