How Much Crypto Should You Own at Different Ages?

Quick Read

• Morgan Stanley and BlackRock cap crypto at somewhere between 0% and 4%, pushing young investors toward the higher end while urging retirees to minimize exposure.

• Bitcoin's 77% crash shows a 20% crypto allocation in an $800,000 portfolio could mean a $123,000 loss, forcing retirees to cut essentials.

• Time horizon matters more than age for crypto decisions, since retirees who sell during downturns permanently lock in losses and miss any recovery.

• Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)

When it comes to investing in cryptocurrency, how much should you own at different ages—like 30, 55, or 70? Traditional investing guidelines, such as "100 minus your age," suggest that a 30-year-old should have 70% in stocks and a 70-year-old should have 30%. However, crypto like Bitcoin (CRYPTO:BTC) challenges these rules, requiring a fresh approach.

While stocks have decades of data to analyze past market crashes and recoveries, Bitcoin has only about 17 years of history and doesn't pay interest or dividends like bonds and stocks do. Its value can fluctuate wildly, leading to significant gains or severe losses. Therefore, a more practical question is how much you could afford to lose without impacting your lifestyle. This becomes particularly important as you approach retirement.