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How Much Crypto Should You Have in a Diversified Portfolio?
Ruby Layram
16th Sep 2025
Cryptocurrency has gone from being a niche interest to a mainstream investment option. There are now a range of FCA-registered crypto exchanges in the UK. This means that investors can now choose a crypto exchange that follows anti-money laundering practices.
Note that FCA registration does not guarantee the safety of your funds when investing in cryptocurrencies. Crypto investments are high-risk and volatile, and you may lose some or all of your investment.
With Bitcoin, Ethereum, and a host of other digital currencies making headlines, it’s no wonder that many investors are wondering: how much crypto should I actually hold in my portfolio?
The short answer? It depends.
Your ideal crypto allocation isn’t a one-size-fits-all figure, it’s shaped by your goals, risk tolerance, and budget.
In this guide, we will break it down so you can make an investing decision that is right for your circumstances.
Please note that this is not investment advice. We are not licensed to provide financial advice in the UK. You should seek professional advice from a licensed financial provider.
Understand Your Investment Goals
Before you even think about percentages, ask yourself, why am I investing in crypto?
Long-term growth:
- If your goal is wealth accumulation over years or decades, a moderate allocation to crypto could possibly offer high growth potential. But remember it could also make a loss, so choose your cryptos carefully.
- Speculative investments: If you’re chasing quick gains and can stomach volatility, a slightly higher allocation might be suitable. But be careful not to overexpose yourself. What goes up can come down.
- Diversifying against traditional markets: Some investors use crypto as a diversification tool, to balance exposure to stocks, bonds, and other assets.
Your goals will shape the percentage of your portfolio that should be in crypto.
For example, someone aiming for steady, long-term growth might allocate 1–10% to crypto, whereas a professional investor with more experience and an aggressive portfolio might go for more.
Know Your Risk Tolerance
Crypto is famously volatile. Prices can swing wildly in a single day. This means your comfort with risk is crucial.
Also read: What I wish I knew before buying my first Bitcoin
- Conservative investors: If sudden drops make an investor lose sleep, these investors could consider keeping crypto to a small portion of their portfolio, maybe under 5%.
- Moderate investors: If an investor can handle ups and downs without panicking, they could perhaps consider 5–10%.
- Professional investors: If volatility is something an investor can live with, 10–20% could make sense for them. Every investor however should always avoid going higher than they can afford to lose.
Remember, crypto shouldn’t dominate your portfolio. Diversification is the key to managing risk.
No matter your budget, only invest what you can afford to lose.
Rebalance Regularly
Once you’ve decided on your allocation, it’s important to consider rebalancing your portfolio regularly. If crypto suddenly jumps 50% in value, it could unintentionally make up a bigger portion of your portfolio than intended, increasing your risk. So you could consider selling some crypto to buy into more traditional assets. This is an example of ‘rebalancing’.
Set a schedule (monthly, quarterly, or yearly) to ensure your crypto allocation stays within your comfort zone.
Mix Crypto With More Traditional Investments
Remember, crypto is just one piece of the puzzle. A well-diversified portfolio also might include:
The combination of these assets may help to manage risk while still giving you growth potential.
Crypto should complement your portfolio, not dominate it.
Crypto allocation depends on your goals, risk tolerance, and budget. Conservative investors might keep it at 1–5%, moderate investors could go for 5–10%, and professional investors may stretch to 10–20%.
Whatever your level, it’s important to rebalance regularly to maintain your target allocation and keep crypto as part of a diversified portfolio, rather than relying on it alone.
| Standard Risk Statement |
| The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies. The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results. |
| UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor. New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.). |
| Cryptocurrency is currently not regulated in the UK. It’s vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments. You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you’re unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) if something goes wrong. |
| Remember: |
| Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more: www.coinjar.com/uk/risk-summary. |
| If you use a credit card to buy cryptocurrency, you would be putting borrowed money at a risk of loss. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. |
| Note the standard risk warning from the CoinJar website. |
While it can be an exciting investment, it’s not free from risk. By carefully managing your allocation and risk, you can trade crypto while carefully managing your overall financial health.
Hey Ruby, I hope you are well. Happy Friday!! I would like to invest in Crypto Currencies and I wanted to know how to buy it in small amounts every other week through out the year.
I would like to invest in bitcoin which platform is a good one