Interest in crypto has risen 300% compared with the preceding five years, based on the popularity of the search term "crypto" on Google Trends.

Over the longer term, crypto's baseline popularity has increased fourfold, even as Bitcoin [BTC] has struggled to recover from a downturn that began last October. The broader rise in attention has been linked to institutional investment, spot exchange-traded funds [ETFs], and developments such as real-world assets being brought onchain through tokenization. The approval of spot Bitcoin ETFs in the United States in early 2024 opened a regulated pathway for retail and institutional investors to gain crypto exposure through standard brokerage accounts without managing private keys or custodial wallets, a friction point that had previously limited broader participation.

Crypto is increasingly viewed as an investment option. The Charles Schwab 2025 Modern Wealth Survey found that two-thirds of surveyed American investors believe they need to look beyond traditional investment products to achieve better investing success.

How investors allocate to crypto

According to the survey figures cited, stocks account for an average of 25% of investors' portfolios, followed by mutual funds at 13%, bonds at 8%, and cryptocurrencies at 10%. Half of the Americans surveyed agreed that investing today requires taking more short-term risk than it did in the past.

Crypto's high volatility since its inception has also shaped investor perceptions. The survey found that 53% of all crypto investors considered it a high-risk venture.

That risk has existed alongside significant growth in the overall market. Since July 2017, the total crypto market capitalization has increased by around 2,600%, rising from $77 billion to $2.19 trillion. For context, that $2.19 trillion figure remains well below the market capitalization of single traditional asset class leaders such as gold, which is valued in the tens of trillions, suggesting crypto still represents a fraction of global investable assets. As a nascent asset class, crypto's rapid growth is expected to slow over time, while still continuing upward.

Questions before treating crypto as an investment

The potential rewards of crypto investing can obscure the losses suffered by thousands of traders and investors through exchange hacks, rug pulls, scams, stolen wallet passwords, and poor investment timing. Unlike traditional brokerage accounts, which in the United States are insured through SIPC coverage up to certain limits, crypto holdings on exchanges frequently lack comparable protections, making custodial risk a material consideration for investors choosing where to hold assets.

Whether crypto is suitable for an investor depends on their goals, investment targets, risk appetite, and time horizon. Investors are often told to invest only what they can afford to lose, which means keeping the size of any crypto allocation within limits that match their own risk tolerance. For example, BlackRock recommends a 1-2% allocation to Bitcoin.

Time horizon is another factor. Investors with a multi-year outlook may be less likely to react to market hype or panic cycles, while shorter-term investors may seek steadier returns. Depending on where crypto is in its market cycle, those expectations could be met or could result in substantial losses. Historically, Bitcoin has moved through multiple cycles of peaks and drawdowns exceeding 50%, a pattern that underscores the importance of aligning holding periods with personal risk capacity rather than reacting to short-term price action.

Understanding dollar-cost averaging into bear markets, being comfortable with price swings, and occasionally keeping up with crypto market trends may be ways for investors to gain exposure to this alternative asset class.

Whether an investor uses established exchanges to buy top-cap crypto assets or chooses ETFs, consistency, risk management, and financial knowledge remain important, as they do with other investment options. The emergence of crypto ETFs has also made it easier for investors to apply familiar portfolio management techniques, such as rebalancing within tax-advantaged accounts, to digital asset exposure.

Crypto can be a viable investment option for some investors, but it requires answering several questions before entering the market. Its rising popularity has meant that 41% of surveyed Americans consider crypto a good investment, even as they continue to view it as high risk.