Nick Gallo at Investopedia wrote about how everyday investors are actually making sense of crypto, and asked me what I see in my office. The pattern is almost always the same. Someone saw a coworker post about gains, or heard something at a dinner party, and suddenly they want in. A lot of the interest starts exactly that way, one stray comment away from becoming the only thing on someone's mind. That is FOMO. It is not a strategy.
I gave him a simple test instead of a lecture. If you would panic-sell at a 60% drawdown, the position is too large. For most of my clients, that caps crypto at 2% to 5% of investable assets. Meaningful enough to participate, small enough that a bad month does not touch the retirement plan.
I also told him the harder part. Crypto has gone mainstream in awareness, not in utility. Everyday consumers still are not paying for groceries in Ethereum. The places it solves real problems are narrower than the hype suggests: cross-border remittances and access to financial services in underbanked markets. Everything else is still speculation, not innovation.
The question worth asking is not whether to own it. It is what your rule is for sizing anything speculative inside the rest of the plan.
Read the full article at Investopedia →
