Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Learn more here.

If you keep up with financial news, it can often feel like you’re hearing a story about a self-made crypto millionaire every other day. However, smart investors know that the reality is a little more nuanced. The crypto market comes with high rewards, but it also has high risks. To be successful, you need to be willing to 

 and make wise choices. This guide will explore one of the most basic things you’ll need to decide on before choosing to jump into the world of crypto — how much you should invest in crypto.

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Not only does the amount you invest in crypto impact your other finances, but it also determines which strategies you can afford to use.

The simple answer to how much you should invest in cryptocurrency is based on your net worth. Someone with millions of dollars can easily risk a lot more than, for instance, a college student without any savings. Traditional investment advice from financial expert Douglas Feldman 

 people shouldn't invest more than 1% to 5% of their total net worth in cryptocurrency. However, some crypto enthusiasts, such as

 be wise to invest up to 10% of your income in cryptocurrency.

Factors to Consider When Deciding How Much to Invest in Crypto

There's a lot of variation in guidelines for how much to invest in crypto. To find the right amount to invest for your specific situation, you'll need to stop and consider these essential factors.

One of the most important factors in determining how much to invest in crypto is the level of risk you’re willing to consider, or your risk appetite. If you have a high risk tolerance, you can invest more. Risk tolerance is partially a matter of personal preference. Some people are naturally cautious, while others are more comfortable making risky moves. However, it’s also wise to factor in your age. A high risk tolerance can work well when you're young because gradual market growth over the years will help balance losses. However, if you're older and closer to retirement age, a lower risk tolerance is advisable.

When planning to invest in crypto, it's a good idea to consider the best-case scenario as well as the worst. Ask yourself: What will happen if my crypto assets suddenly skyrocket in price and I make thousands of dollars overnight? If you're the type of person who would throw in more money or keep holding onto your crypto until the bubble bursts, it might be smart to reduce the portion of your money that you invest in crypto. The flashy profits associated with crypto can lead to overly emotional decisions that can cause problems for certain types of crypto investors.

, the types of coins you're holding make a big difference. Not all types of crypto have the same level of risk. If you intend to go for a risky investment portfolio with nothing but 

, you probably shouldn't take all your assets and invest them in crypto. However, if you intend to invest in a broad range of reliable coins, especially 

, allocating more of your assets toward crypto is a reasonable choice.

Things change fast in the crypto world, so the same advice doesn't always work in different situations. Any time you’re going to invest in crypto, you need to take a look at crypto market conditions. In a 

, prices are consistently high, so you may want to invest less. Meanwhile, in a 

, prices are low, and you can often get big returns by putting extra into crypto investing.

Your liquidity refers to the amount of easily accessible cash you have at hand. Crypto markets are fairly liquid, since you can remove your funds at any time. However, since crypto is a volatile asset class, trying to remove your funds during a bear market can lead to considerable losses. Before putting large sums into crypto investing, think about when you'll need liquid cash. For instance, if you're going to need a large lump sum for a house deposit or another big purchase soon, you need to invest less money in crypto.

Keep in mind that a lot of the recommendations to invest between 1% to 10% of your money in crypto are based on income. However, the reality is that different people have different budgets. Some may need almost all of their income for things like food and housing, so it's not smart to take all your money and invest in crypto. However, others who have more disposable income left over after managing other budgetary needs can invest in crypto more often.

The cryptocurrency market as a whole does follow certain trends, but crypto investments always fare better if you actually understand projects before you invest. It's a poor decision to put a large portion of your assets into obscure crypto you know nothing about. Informed investors only put significant investment into specific cryptocurrencies if they take the time to 

, understand its real-world utility, explore its pricing history and see how well it performs on crypto exchanges.

What Is a Good Allocation for a Well-Balanced Crypto Portfolio?

Once you figure out how much money you want to invest in crypto altogether, you need to consider how much money to put into each specific crypto. It's important to have a diversified portfolio, so a single coin running into issues won't tank your entire crypto investment portfolio. There are a lot of different ways to invest in crypto.

The simplest investment advice, as suggested by

, is simply to put 60% of your money into Bitcoin and 40% into Ethereum. That's a decent choice if you know nothing about crypto assets but still want to invest in crypto. However, if you're willing to research individual coins and pick your favorites, try this asset spread:

If you are open to some speculative exposure, consider allocating a small percentage (2 - 3%) to emerging sectors like 

Compared to some other investments, such as bonds, cryptocurrency is considered risky. The 2020 - 2024 chart below, detailing Bitcoin and S&P's weekly returns, reveals the relatively drastic peaks and troughs of Bitcoin in comparison to S&P 500. Notably, Bitcoin recorded a weekly drop of over 40% and nearly 30% rise in 2020, thugh its volatility has declined over the years. In contrast, S&P 500's gains and losses rarely exceeded 10% throughout the entire period.

Despite Bitcoin's drop in volatility, it is still considered relatively risky to invest in crypto because of the market’s significant price fluctuations and the proliferation of 

s. Additionally, there are countless examples of people who invest in crypto, jumping onto trends and losing their money when prices on the crypto exchange drop. One

 illustrates these dangers: he became interested in crypto during the pandemic and quickly got hooked upon seeing his portfolio values rise. He invested $50,000 into crypto, and eventually built an impressive portfolio worth $300,000. Following a 

, he had only $5,000 left in his account.

Furthermore, crypto markets are still not fully understood by the public, and are less regulated than traditional investments, so it's easier for malicious actors to take advantage of naive investors. For example, crypto-lending company 

 promised to store customers' assets, but when the company went 

, many users found that the company refused to return their invested funds. A similar issue arose when 

, and investors could no longer withdraw funds from their accounts.

Despite its risk, cryptocurrency fills an excellent niche in the financial world. When you invest in crypto, it can ensure your portfolio is diversified and insulate you from stock market crashes and other issues with traditional investments. Deciding to invest in crypto is also a valid option when you want to work with some higher-risk investments. Even beginning traders can find it useful to place a small portion of their investment funds into some reliable cryptos.

Furthermore, cryptocurrency allows people with tech expertise to make highly informed decisions. Finding your niche is always a useful investment strategy. Those who don't keep up with manufacturers and foreign currency exchange rates might find that they can specialize by choosing to invest in crypto. If you enjoy learning about the latest tech news and following online memes, crypto investments can be a great way to turn your knowledge into profits.

However, even though it often works well to invest in crypto, you still need to exercise some caution before working with crypto exchanges. If you want to invest in crypto, it's essential to follow the classic rule of, "Only invest the money you can afford to lose." Those who take out loans to buy 

 or throw their entire retirement account into crypto can end up losing it all if the markets take a turn for the worse. Like any other volatile asset class, crypto needs to be approached with some common sense.

Deciding how much money to invest in crypto is an essential part of your investment strategy. By considering things like risk tolerance and liquidity, you can create an investment portfolio that addresses your unique needs. When you have the right amount of money invested in crypto, you have the potential to make impressive profits without risking all your savings.

Beginner

how much to invest in crypto, how much to invest in bitcoin

how much to invest in crypto, how much to invest in bitcoin.png

How Much Should You Invest in Crypto? 7 Factors to Consider

Explore how to participate in the Bybit Copy Trading Gold&FX Fiesta to win rewards. In addition, learn how you can unlock an additional 5,000 USDT prize pool!

Trading in Gold and Forex has long been favored among seasoned investors seeking stability and long-term wealth preservation. However, these markets are traditionally complex, requiring deep knowledge of macroeconomic trends, currency correlations and geopolitical factors. But what if you could tap into these lucrative markets without the steep learning curve?

 — a game-changing solution that enables traders automatically mirror the strategies of experienced professionals. Bybit has now 

, allowing crypto traders to seamlessly diversify their portfolios without needing prior experience in these traditional asset classes.

To make this transition even more enticing, Bybit has launched the Copy Trading Gold&FX Fiesta, an exclusive event offering a 130,000 USDT prize pool to reward participants who trade in gold and forex using Bybit’s Copy Trading Gold&FX. Furthermore, there’s an additional 5,000 USDT prize pool you can unlock when you participate in the Copy Trading Gold&FX Read-to-Earn campaign. This comprehensive guide will help you understand the event, its mechanics and how you can actively participate to maximize your trading potential.

What Is the Bybit Copy Trading Gold&FX Fiesta?

 is a trading event in which participants can diversify their portfolios into gold and forex markets, copy expert traders and compete for 130,000 USDT in rewards.

With seamless integration of crypto-based trading using USDT, and the ability to follow professional traders, this event opens unique opportunities for beginners and experienced traders alike.

How Does Bybit Copy Trading Gold&FX Fiesta Work?

The event is structured to make trading in gold and forex markets accessible and rewarding. Participants can trade using USDT without needing to convert it into fiat currencies, making the process straightforward for crypto enthusiasts. By leveraging Bybit’s Copy Trading feature, users can replicate the strategies of successful Master Traders, gaining exposure to proven techniques.

There are two ways in which you can earn rewards from this event — as a Copy Trading Gold&FX Master Trader, or as a Copy Trading Gold&FX Follower.

To compete as a Copy Trading Gold&FX Master Trader, simply follow the two steps below:

If you’d like to compete as a Copy Trading Gold&FX Follower, simply follow these steps:

The event runs from Jan 24, 2025, 10AM UTC through Feb 24, 2025, 11:59 PM UTC, with rewards distributed on a first-come, first-served basis.

How to Participate in the Bybit Copy Trading Gold&FX Fiesta

Now that you have a better understanding of the campaign, let’s take a look at how you can participate in the Bybit Copy Trading Gold&FX Fiesta and grab a share of the 130,000 USDT prize pool! 

Before you can register for the event, you’ll first need to create a Bybit account. Follow our detailed 

 if you require assistance. If you’d like to participate as a Copy Trading Gold&FX Master Trader, you’ll first need to apply to become one by following this guide.

Participate as a Copy Trading Gold&FX Master Trader

: You will be prompted to log in to your Bybit account. If you don’t already have one, please register for a Bybit account. Once you’ve successfully registered for the event, you’ll see that the 

button is now gray and you’ll be able to see the required tasks in order to win a share of the rewards.

task and complete your first Master Trade.

: Trade at least two lots of gold or forex daily for the duration of the campaign to gain one Lucky Draw chance per day.

Once you’ve accumulated Lucky Draw chances, you can use them to spin the Lucky Draw wheel on the Copy Trading Gold&FX Fiesta page. Simply click the 

button. You can view your available rewards by clicking 

Participate as a Copy Trading Gold&FX Follower

task and a pop-up window will appear. Click 

On the Bybit Copy Trading Gold&FX page, scroll down to view the 

. You can filter all the Master Traders by 

. Look for a Master Trader whom you resonate with, and click on the corresponding 

: Input the amount you’d like to trade, and select the items to copy. Then, check the box once you’ve read the 

[BONUS] Copy Trading Gold&FX Read-to-Earn Campaign

Looking to boost your rewards? Unlock an additional 5,000 USDT prize pool when you participate in the 

Running from Jan 24, 2025, 10AM UTC through Feb 24, 2025, 11:59PM UTC, the Copy Trading Gold&FX Read-to-Earn campaign features five modules and a quiz at the end of the course. Read all five modules and complete the quiz to win a share of the 5,000 USDT prize pool!

Should You Participate in the Bybit Copy Trading Gold&FX Fiesta?

This event is a golden opportunity (pun intended) for traders who want to explore gold and forex markets with minimal effort while enjoying a range of benefits. Here are some compelling reasons to consider joining:

While crypto trading can be highly rewarding, the crypto market is 

. Gold and forex markets offer a level of stability that crypto lacks, making them a great way to hedge risk and create a more balanced portfolio.

One major challenge in gold and forex trading is the complexity of fiat conversions. Bybit simplifies this by allowing users to trade these assets with USDT, eliminating the need for bank transfers or currency conversions.

3. Copy Expert Traders — Instead of Learning from Scratch

Traditional gold and forex trading requires an in-depth understanding of macroeconomic trends, monetary policies and market fluctuations. However, Copy Trading removes this complexity by allowing users to follow and replicate the strategies of successful Master Traders. This is perfect for beginning traders who want to start without spending years mastering market analysis.

With 130,000 USDT in rewards and an additional 5,000 USDT prize pool up for grabs, you can earn daily rewards simply by executing trades. Completing daily trading tasks not only improves your trading experience, but also gives you the chance to win Lucky Draw bonus rewards.

This campaign is designed to be accessible to everyone, whether you’re an experienced trader or completely new to gold and forex. With Copy Trading, all you need to do is select the best Master Trader for you — and let the system handle the rest.

The Bybit Copy Trading Gold&FX Fiesta is more than just a trading event: it’s an opportunity to broaden your horizons, learn from experts and earn rewards. With simple steps to join and a host of benefits, this event is designed to empower traders at every level.

Don’t miss out on your chance to diversify into gold and forex markets and compete for your share of the 130,000 USDT prize pool. Moreover, you can unlock an additional 5,000 USDT prize pool simply by reading five modules and completing a quiz via the Copy Trading Gold&FX Read-to-Earn campaign! 

 — and take the first step toward unlocking new trading opportunities today!

copy trading gold & fx fiesta.png

How to Participate in Bybit Copy Trading Gold&FX Fiesta

Plume Network (PLUME) is a modular Layer 1 blockchain enabling seamless tokenization and compliant integration of RWAs into DeFi.

 (RWAs) are a relatively new area within the blockchain industry. The niche of RWAs has seen some serious growth over the past two years, driven by the expectations of leveraging these assets to connect the worlds of traditional finance (TradFi) and 

 (DeFi). The use of RWAs is currently evolving from pure tokenization into more active applications within the broader crypto finance field. Several RWA-focused blockchain projects have been launched with the aim of putting these assets into active use on DeFi protocols.

Among the new projects in this area is Plume Network, a modular 

 blockchain that aims to create a demand-driven RWA ecosystem. Plume is committed to creating an environment in which physical and digital assets can easily be tokenized, compliance-checked and further used on DeFi platforms for yield generation, lending, borrowing and collateralization. By offering features like streamlined tokenization, smart wallets with advanced RWA management functions and data enrichment from external sources, Plume aims to become a leader in 

 (PLUME) is a modular, secure Layer 1 blockchain designed for streamlined tokenization and applications of RWAs. 

Plume offers the infrastructure to tokenize RWAs, have them automatically checked for compliance and further utilize the assets within DeFi protocols for lending, borrowing, collateralization and other common crypto finance functions.

Plume's tokenization engine, Arc, lets asset owners simplify the process of moving physical and digital assets on-chain. Smart wallets offered by the platform allow these tokenized assets to be further used and managed on external DeFi protocols. Additionally, Plume supports RWAs by integrating external liquidity and data enrichment sources. In short, the platform provides a comprehensive solution for asset owners to manage their RWAs, from moving them on-chain to actively deriving monetary value from their use within the DeFi industry. The project calls this active application of RWAs within the DeFi framework RWAfi, underscoring the tight integration of these assets with the world of crypto finance.

Plume Network launched its testnet in July 2024 after successfully raising $10 million in a seed-funding round. Within eight weeks of its testnet launch, Plume had attracted close to 3.8 million users and processed 265 million transactions.

As of the time of this writing in mid-January 2025, the Plume blockchain continues to operate in testnet mode, with its 

 expected to be launched soon. Plume’s road map for 2024–2025 focuses on the active development of the infrastructural foundations of the platform — its system of 

 and an asset tokenization engine. From 2025 to 2026, the project team plans to expand the platform's ecosystem of RWA classes and yield generation sources. After that, Plume envisions collaborations with TradFi entities to bridge the gap between them and the universe of DeFi.

The Plume project was founded in 2023 in San Francisco, California, by Chris Yin, Teddy Pornprinya and Eugene Shen.

Plume Network users can take advantage of a secure, streamlined process to bring their assets on-chain. Using a network of compliance verification partners, Plume conducts all the necessary regulatory and 

 (AML) checks relevant to each asset type. This optimized verification process gives RWA owners the certainty and confidence that their assets comply with all relevant regulations. Additionally, Plume uses ongoing transaction monitoring to identify suspicious or fraudulent activities related to RWAs to protect its users and the entire ecosystem.

Both physical and digital assets can be tokenized on Plume and converted to composable RWAs. “Composability” implies that the assets can be flexibly used in DeFi protocols without the need to re-tokenize them to fit the format of each individual protocol.

As Plume Network gears up for its mainnet launch and further infrastructure development, its project is in active discussions with several on-ramp and off-ramp providers to help realize its ambition of becoming a leading RWA platform. “On-ramping” refers to the functionality that lets users convert fiat currencies to blockchain-based assets. In contrast, “off-ramping” is the reverse process — the ability to convert crypto assets into fiat currencies for the purpose of taking funds off-chain. Both on-ramping and off-ramping are critical for supporting the tokenization of RWAs, their use within the crypto ecosystem and their possible conversion back to off-chain formats.

With the planned network of on-ramp and off-ramp service providers, Plume will enable its users to achieve greater flexibility in monetizing and managing their RWAs.

Following the tokenization process, Plume ensures that liquidity sources are available to leverage the newly tokenized RWAs. The project has partnered with numerous liquidity providers to help asset owners immediately use their RWAs. These partner liquidity providers allow Plume Network to leverage RWAs for 

Plume’s RWA Chain is the infrastructural backbone of the platform, designed to make the process of RWA tokenization and monetization as effective as possible. The chain is an 

 (EVM)–compatible Layer 1 network, with high levels of modularity and a consensus model — PlumeBFT — designed to optimize high-value, RWA-based transactions. 

Specific details of PlumeBFT have yet to be released by the project team, but its name suggests that it’s a variation of the 

 Byzantine fault tolerant (BFT) consensus model, which typically supports transaction processing and network security even in the presence of some maliciously acting validators. BFT-based models are generally regarded as highly fault-tolerant, a property that’s undoubtedly important when dealing with high-value RWA transactions.

Arc is Plume RWA Chain’s tokenization engine. It’s a full-stack, open-source engine that lets businesses tokenize their assets in full compliance with U.S. securities regulations. Arc features components for tokenization, on-ramping and off-ramping, identity verification, AML monitoring and secondary market trading.

As of January 2025, Plume Network provides early access to developers and asset owners to Arc, with the public release expected later in Q1 2025. In the early-access mode, issuers with yield-bearing assets over $1 million can use Arc for free.

Subject to third-party checks and regulatory approvals, Arc can be used to tokenize diverse assets, including public equities, ETFs, bonds, bank loans, carbon credits, private credit, corporate debt and more.

 that allows asset owners to easily manage their RWAs. It comes with various features, such as built-in compliance monitoring, gasless transactions for certain core operations, and access to around 20 DeFi protocols. As an RWAfi wallet, Plume Passport lets RWA owners directly leverage yield-generation and trading opportunities on partnering DeFi platforms.

Plume Nexus is the platform’s component for enriching on-chain data with information from external sources. Using a group of partnering 

 service providers (Seda, OpenLayer, Supra and Stork), Nexus sources data on financial and economic indicators, social trends and even weather patterns to provide richer insights to users of Plume Network.

Thanks to Nexus, Plume isn’t just a blockchain for tokenizing assets, but also an environment with comprehensive real-time analytics support for RWA users.

Plume USD is the blockchain’s USD-pegged 

, indirectly backed by the market’s two leading stablecoin assets, 

. Users can mint Plume USD by depositing these two stablecoins. Whenever required, they can reclaim their original deposits by converting Plume USD into these well-established stablecoins.

Plume USD is envisioned to support various applications via partnering DeFi platforms. These applications may include earning yield from RWAs, placing wagers within betting protocols, lending and borrowing against RWAs and more.

Nest is a staking protocol on the Plume blockchain that creates yield-earning opportunities for RWA owners. Using Nest, users can earn institutional-grade yields collateralized with RWAs. As of January 2025, the Nest protocol is a work in progress. The first set of yield-bearing vaults is expected to be launched soon.

Plume’s native token, PLUME, was launched on Jan 21, 2025. PLUME supports a variety of functions on the platform, namely:

 cryptocurrency, with a total and maximum supply of 10 billion. Upon launch, 20% of the total supply (2 billion) was released into circulation. The token's supply distribution shares are shown in the chart below.

 scheduled to coincide with its native token launch. In mid-January 2025, users had a four-day time window to register their claims, with PLUME tokens to be distributed upon the crypto’s launch, i.e., starting Jan 21, 2025. An additional 33% boost to the tokens airdropped at the token generation event (TGE) will be available to eligible users during the mainnet launch.

Users who qualify for the TGE airdrop include testnet users with loyalty miles, pre-deposit stakers and user communities of several partner DeFi platforms — Polymarket, 

 (ONDO), World Liberty Financial (WLFI), 

 (AIXBT) and some users of Backed Assets, Dinari and Swarm X.

The PLUME token is available on Bybit’s Spot market as a 

 stablecoin. You can also take advantage of the 

 campaign to grab a share of the 40 million PLUME prize pool.

Under the terms of the campaign, new users who complete basic identity verification can earn PLUME rewards by accumulating a deposit volume of at least 3,000 PLUME, or by depositing 100 USDT and trading 100 USDT worth of PLUME via their first trade with Bybit. Existing users can also qualify for rewards by trading at least 500 USDT worth of PLUME on Bybit’s Spot market. The campaign is valid through Feb 3, 2025, 9 AM UTC.

By streamlining the tokenization of diverse real-world assets (RWAs) and building a network of financial infrastructure partners, Plume Network is creating an inclusive financial ecosystem for RWA issuers and traders. The demand-driven integration of RWAs will undoubtedly lead to rapid adoption of these assets within the crypto industry.

Plume’s ecosystem isn't just a blockchain to tokenize RWAs — it's a comprehensive environment with compliance providers, liquidity partners and a versatile tokenization engine. With all these features on offer, Plume is gearing up to become a leading blockchain RWA enabler. Following the recent launch of the PLUME token, all eyes are now on the project's imminent mainnet debut.

Intermediate

plume network.png

Plume Network (PLUME): Building a Demand-Driven RWA Ecosystem

Bybit unveiled its 2025 vision during a livestream, focusing on a user-centric approach to drive innovation in the crypto industry.

Daily Top Performer — Mantle Network (MNT)

The S&P 500 hit record highs, rising 0.53%, led by healthcare, industrials, and real estate, boosted by pro-growth policies and strong earnings. Gold holds near $2,755, recovering from $2,735 amid a weaker US Dollar and rising jobless claims. Set for weekly gains, it faces resistance at $2,790, with central bank decisions in focus. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.15%, with Bitcoin and Ether dropping by 0.91% and 0.21%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is MNT, which surged nearly 10.1% after Mantle Network partnered with Synergy to drive cross-chain innovation between the TON and EVM ecosystems.

Mantle Network (MNT), launched in July 2023, is a modular Ethereum Layer 2 solution that enhances performance and security. It uses optimistic rollups for off-chain batch processing, improving throughput and reducing costs while maintaining compatibility with Ethereum's existing smart contracts. 

 to enhance cross-chain development between TON and EVM ecosystems. They aim to innovate on-chain finance and onboard users via new primitives. The TON Accelerator’s Cohort_0.2 focuses on cross-chain DeFi, infrastructure, LSDs, and synergies, integrating Mantle’s liquidity with TON through LayerZero’s OFT token. Builders are invited to apply for support in these areas.

Check Out the Latest Prices, Charts, and Data of

, focusing on a user-centric approach to drive innovation in the crypto industry. CEO Ben Zhou highlighted the company’s dedication to listening to user feedback, addressing challenges, and continuously improving. Bybit's achievements in 2024 included expanding its Bybit Card program, handling high traffic events like the $HMSTR token airdrop, and partnerships with leading stablecoin providers. Innovations such as TradeGPT, Pre-Market Perpetuals, and bbSOL also marked key milestones. Bybit’s 2025 roadmap emphasizes further product diversification, Web3 integration, and strategic partnerships to continue empowering users and advancing the crypto ecosystem.

Check Out the Latest Prices, Charts, and Data of 

BTC Spot ETF flows totaled $16.5M yesterday, driven by $66.4M from non-GBTC funds, offsetting a $49.9M outflow from GBTC.

, allowing users to check their airdrop allocation, typically 50-100 tokens, based on 9 days of free tasks. With a max supply of 1 billion tokens, the price could settle around $0.10. Claims and listings begin tomorrow.

Bybit Reveals 2025 Vision with Focus on User-Centric Innovation

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards