Back in 2010, buying bitcoin was a simple and inexpensive task. You could easily purchase one for just a few cents. However, fast forward 15 years and the cryptocurrency's value has skyrocketed to a staggering $93,000 per coin as of early January 2026. It's hard not to feel FOMO (fear of missing out) when you see the success of those who invested in bitcoin early on. According to the recent Crypto Wealth Report by Henley & Partners, the number of bitcoin millionaires worldwide grew by 70% between July 2024 and July 2025. But is it too late to jump on the bitcoin bandwagon and reap the benefits of its popularity?
Current spoke to financial experts to weigh in on the risks involved in investing in such a volatile asset. Bitcoin's price movements have been known to be unpredictable, with significant drops and sudden surges. In some ways, owning bitcoin can feel like riding a rollercoaster, as it experienced a rollercoaster of its own in 2025. It started at $93,000, dropped to $75,000 in April, hit an all-time high of $125,000 in October, and ended the year back where it began.
Ben Loughery, a certified financial planner and founder of Lock Wealth Management, explains that bitcoin has always been a highly volatile asset, going through multiple boom and bust cycles. However, each peak has historically been followed by new all-time highs years later. These ups and downs are what give bitcoin its potential for high returns. If you buy in during a sell-off, you may benefit from a price surge. So while you may have missed out on the early and massive gains of bitcoin, there is still a chance for the price to take off again.
But just because bitcoin has the potential for high returns, it doesn't necessarily mean it's the right investment for everyone. The crucial question to ask is whether bitcoin aligns with your overall investment plan, risk tolerance, and time horizon, rather than focusing on the perfect timing to enter the market. As Loughery puts it, "It is better to understand its long-term role in your portfolio versus worrying about missing a short-term dip or spike."
Wall Street professionals struggle to time the stock market, so it's probably not wise to rely on your own ability to predict bitcoin's price. Instead, do thorough research and keep in mind that bitcoin has entered the mainstream investing world. Federal regulators now allow for exchange-traded funds that track its price, and there has been an influx of money from institutional investors. However, some skeptics argue that bitcoin has no intrinsic value. Billionaire investor Warren Buffett, known for warning investors about the risks of crypto, stated in 2022, "Whether it goes up or down in the next year, or five or 10 years, I don't know. But the one thing I'm pretty sure of is that it doesn't produce anything. It's got a magic to it, and people have attached magic to lots of things."
If you do decide to invest in bitcoin, financial advisors advise not to put in more money than you're willing to lose. Some recommend allocating only a small portion of your portfolio to speculative assets like bitcoin, often referred to as "play money." It's essential to have an emergency fund in place that covers three to six months of expenses before considering investing in crypto. Additionally, it's crucial not to have one particular asset account for too much of your portfolio. As certified financial planner Chris Chen explains, "A key principle of investing is to diversify. Investors should never put their eggs in one or too few baskets. The same is true for bitcoin." Morgan Stanley suggests allocating up to 4% of your portfolio to bitcoin for aggressive investors seeking higher returns from short-term market opportunities, while a 3% allocation makes more sense for those with a moderate-to-aggressive risk tolerance, 2% for those looking for a mix of capital appreciation and income, and 0% for those focused on income or wealth preservation.
When it comes to actually investing, you don't necessarily have to open a brand new account. Some fintech banking platforms offer the option to buy and sell dozens of coins, including bitcoin, within the same app as your spending account, without trading fees. In short, bitcoin's price is somewhat unpredictable, but if you are looking to invest, diversification and keeping crypto to a limited portion of your portfolio could be key.
