Cryptocurrency has always been most popular with younger investors, which is understandable. Younger generations are more likely to adopt new technology, and they can afford a higher risk tolerance, since retirement is still a way off.

However, some young investors take on too much risk with their crypto holdings. The World Economic Forum’s 2024 Global Retail Investor Outlook reported that 35% of Gen Z and 26% of millennial crypto investors had allocated over half of their portfolios to cryptocurrency.

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It can be tempting to build a crypto-heavy portfolio, especially when you’re starting out and don’t have much to invest yet, because cryptocurrencies can deliver spectacular returns. For example, even after…