Experts suggest allocating a small portion of your investment portfolio, around 2-3%, to cryptocurrencies like Bitcoin. Due to high volatility, a little goes a long way. The appropriate allocation depends on an investor's risk tolerance. Younger investors may consider up to 5-7%, while older investors should be more cautious. Regardless of allocation, it's recommended to invest in small increments and rebalance your portfolio regularly.
Investors are feeling the fear of missing out (FOMO) due to Bitcoin's recent surge. While it's important to exercise caution, investors should approach Bitcoin like any other investment, using the same principles of diversifying and using a repeatable process to avoid FOMO and maximize potential gains. Remember, Bitcoin's value is influenced by liquidity and the overall money supply.
