A recent survey by Charles Schwab reveals that cryptocurrency is becoming an increasingly popular component of Americans' wealth-building strategies. Nearly half of the investors surveyed (47%) own crypto, and 23% of Americans overall are interested in buying it. Among current crypto owners, 60% plan to buy more within the next 12 months, the highest conviction across all investment types measured, including ETFs, stocks, and bonds.
The top reasons for owning or wanting to own crypto were its long-term growth potential (36%) and the diversification it offers (33%). Younger investors, particularly millennials, are leading the charge, with one-third of them owning crypto and 64% planning to buy more in the next year. In contrast, fewer than one in 10 baby boomers own crypto.
Despite its growing popularity, crypto is widely considered a high-risk investment. Scott Martin, a partner at Kingsview Wealth Management, advises caution. He suggests limiting crypto to 1% to 2% of a diversified portfolio, with 5% being a more aggressive bet. Martin emphasizes the importance of not risking money needed for near-term expenses in crypto due to its significant volatility.
Non-owners cite concerns about scams or fraud (48%), lack of understanding (39%), and insufficient regulation (34%) as reasons for avoiding crypto. Martin advocates for a measured approach, starting small and only investing what one can afford to lose. He stresses that owning no crypto is also a perfectly valid strategy for building wealth.