Is crypto still a good idea?
<div class="user-question">What’s going on with crypto right now? Is it still a good investment option?</div>
Crypto news is still as volatile as ever, but if you zoom out instead of doom-scroll daily price action, crypto tells a very different story.
First - let’s talk about the chart below
What it shows:
- Crypto market cap has gone through multiple full boom-bust cycles since 2014
- Each cycle: higher lows, higher long-term trend
- The 2021 peak was hype-driven
- The 2022-2023 drop was a full reset
- And now? We’re back around ~$3T market cap
This isn’t a straight line up - it’s waves of speculation followed by consolidation. Historically, the least exciting periods are when the strongest foundations (and positions) are built.
Signals you shouldn’t ignore this week
JUST IN: $6.9 trillion asset manager UBS is preparing to offer Bitcoin & crypto trading to clients.
What this signals:
- Crypto demand is coming from traditional wealth, not just retail
- Bitcoin is being treated less like a “trade” and more like an asset class
- This opens the door for regulated, compliant access for high-net-worth and institutional clients
JUST IN: Kansas has introduced a bill to create a Bitcoin & crypto Strategic Reserve.
What this signals: Policy and global finance treating crypto like a strategic reserve alongside gold, energy, and foreign currencies.
We’re watching crypto quietly move from a “speculative experiment” to institutional and governmental consideration.
So… is crypto still a good investment?
I’m sure you’ve heard this before but past performance does not indicate future performance. Meaning - no one can tell the future. What I can tell you though is this:
- Retail hype is lower
- Infrastructure is stronger
- Institutions and governments are moving slower, but more seriously
- Volatility still exists - but so does legitimacy
Definitely don’t invest more than you can afford to lose - but also don’t invest in crypto until you’ve checked these boxes:
✅ A cash emergency fund covering 3-6 months of expenses
✅ High-interest debt paid off (especially credit cards)
✅ Contributions started in your retirement accounts and/or HSA
✅ A basic understanding of the stock market - and existing investments in stocks and bonds
<div class="frich-tip">Frich tip: SoFi Checking & Savings lets you earn up to ~4.00% APY when you set up direct deposit, with no account fees and FDIC insurance. See SoFi rates & bonus. Terms apply.</div>
✅ High-interest debt paid off (especially credit cards)
✅ Contributions started in your retirement accounts and/or HSA
✅ A basic understanding of the stock market - and existing investments in stocks and bonds
Crypto should be an addition, not a replacement, to a solid financial foundation.
My takeaway
Crypto isn’t gone. It’s growing up.
And historically, the people who benefit most aren’t the loudest - they’re the ones paying attention when the market feels boring, policy quietly shifts, and charts tell a bigger story than headlines.
If you’re still here asking “does this make sense?” instead of “how fast can I get rich?” - you’re exactly where you should be.
1️⃣ According to the chart of the top 10 cryptos (above), Bitcoin dominance is holding strong. That usually means the market is in a “risk-aware” phase, not blind speculation.
2️⃣ High-volume stable coins (Tether and USDC which are tied to the US Dollar) = money waiting. This means Capital hasn’t left crypto, but is sitting on the sidelines, waiting for clarity.
Don't know where to start?
I created a free portfolio planner to help you get started - based on your age, your monthly contribution, and how much you want to invest into bitcoin!
All you need to do is input your age, your initial investment (this can be as low as $50), and your potential monthly contribution (which can change over time).
Based on the 120 rule, you’ll get information on how to plan and allocate your investments and how they are estimated to perform over time.
Found this valuable? Here are some more deep dives from the Frich team 🤝
✅ Should I invest if I'm broke?
✅ Should I invest or pay my debts?
✅ Explain crypto to me like I'm five
Disclaimer: Thoughts are my own. NFA.DYOR.
