Key Points
-
Many Gen Z and millennial crypto investors have over half their portfolios in cryptocurrency.
-
A crypto-heavy portfolio puts you at significant risk of a drawdown.
-
To protect your portfolio, don’t put more than 1% to 5% of your assets in crypto.
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…
