With the age of six-figure Bitcoin (BTC) upon us, the cryptocurrency landscape appears to be just as lucrative for investors as ever before. But is it still a good investment opportunity?
There’s no doubt that investing in leading cryptocurrencies like Bitcoin and altcoins like Ether (ETH) has paid off in the past.
Between January 2020 and January 2025, Bitcoin rallied more than 1,300%. If you start counting from the beginning of 2017, this gain rises to more than 10,000%. With such astronomical figures, it’s clear to see why so many speculative investors are keen for a piece of the crypto pie.
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According to Nigel Green, CEO of global financial advisory firm deVere Group, Bitcoin may even soar to a value of $150,000 in 2025, underlining the bullish sentiment behind digital currencies. The return of President Donald Trump to the White House has boosted support for crypto among investors and even mainstream brokerage firms, as well as the president’s appointment of a “crypto czar” in David Sacks.
Despite this, the president’s early promises of a strategic Bitcoin reserve underwhelmed investors when information emerged that the government would only be using confiscated digital currency to stockpile crypto, rather than making fresh investments.
Cryptocurrency markets have also experienced high volatility even by their own famous standards so far in 2025, indicating that investors may not have it all their way when investing in their chosen digital assets.
There are still many barriers to crypto’s mainstream adoption that the industry needs to contend with. Countering high market volatility may be one risk factor that proves to be too steep for many investors, but other concerns over security and regulation also persist.
ETFs Offer Some Safety
The arrival of spot Bitcoin exchange-traded funds, or ETFs, in January 2024, followed by Ether ETFs, has served as a timely layer of protection for investors keen to buy into cryptocurrencies without having to expose themselves to the uncertainty of buying directly from cryptocurrency exchanges.
Cryptocurrency scams have scarred many investors and put off others from buying into the ecosystem. The ability to invest in digital currencies via Wall Street can be a safe way of adding crypto rather than attempting to navigate a landscape that’s prone to security issues and high-profile exchange collapses.
Worryingly, 60% of crypto exchanges were estimated to have defaulted due to scams, hacks and business failures in the crypto Wild West era of 2014 to 2018. Although security has significantly improved in recent years, the recent collapse of crypto exchange FTX illustrates why so many investors mistrust crypto.
Despite this, there are millions of investors who believe that cryptocurrencies can help to significantly grow their wealth in the future. So what are the true pros and cons of digital currencies? And is now really a good time to invest in crypto? The recent U.S. entry into the military conflict with Iran has certainly muddied the waters for many different types of investment vehicles, but that aside, let’s take a closer look at the advantages and disadvantages of one of the world’s most speculative investments:
— Pros of investing in crypto.
— Cons of investing in crypto.
— Is crypto a good bet right now?
— Investors are embracing crypto. Should you?
Pros of Investing in Crypto
There are many reasons why so many investors love adding cryptocurrency to their portfolios. With many market commentators believing that the ecosystem will continue to grow in value over the coming years, there’s clearly plenty to be excited about when it comes to crypto investing. Some of the biggest pros of buying into crypto are as follows:
The Leading Crypto Is Scarce
Why does Bitcoin go up in value so much? It all comes down to supply and demand. Unlike fiat currency, which can constantly enter an economy, Bitcoin’s total circulation is capped at 21 million, with around 9 million BTC already minted.
This makes Bitcoin a little bit like gold in that it’s a scarce entity, and that means that demand is likely to outweigh supply, should more investors remain bullish on the cryptocurrency.
It’s partly for this reason that Bitcoin is worth more than $101,400 per coin as of midday June 23. It’s also why altcoins like Ether are valued lower. Unlike BTC, ETH has a potentially infinite supply, and its current circulation of more than 120 million coins far outweighs Bitcoin’s supply.
Scarcity means that all capped-circulation cryptocurrencies need to hold value is to maintain their supply-and-demand imbalance.
Crypto Has Historically High Returns
Past performance is, of course, no guarantee of future results. However, the cryptocurrency ecosystem has become a haven for speculative investments that far outpace their stock market counterparts.
The total cryptocurrency market capitalization has ballooned from a value of less than $20 million in 2015 to around $3.1 trillion today. This extraordinary rate of growth has seen investors across many different digital assets reap sizable returns on their original investments, and a continuation of this rate of growth would mean that more assets will grow significantly in value.
Crypto Is a Hedge Against Inflation
In recent years, investors have seen the impact of inflation on their investments in full force. For traditional currencies, this has meant devaluation has crept into wealth management strategies.
Crypto, however, operates with pre-programmed levels of supply, with many coins, like Bitcoin, capping their total circulation as a conscious protection against the effects of inflation. It’s for this reason that some investors prefer to allocate more of their portfolio to crypto during periods of high inflation.
Around-the-Clock Trading
Unlike Wall Street, crypto trading never takes a break. With markets always open and coins continually mined, there’s no need to wait for the Nasdaq or New York Stock Exchange to begin trading for the day if you want to trade crypto. This paves the way for a greater level of control, allowing you to act quickly on prospective trades without having to wait until morning.
Cons of Investing in Crypto
There are plenty of justifiable reasons why investors are wary of getting involved in crypto, and the following cons are important to consider if you’re unwilling to take on risk as part of your investment strategy:
Extreme Volatility
In the 21st century, investors may be a little more accustomed to market downturns, but the cryptocurrency landscape is still another matter entirely.
Despite the first cryptocurrency, Bitcoin, launching as recently as 2008, there have been six major black swan events throughout cryptocurrency markets between then and now. During historical market downturns, some altcoins have failed to recover their values, leaving investors deeply in the red.
Although it’s the extreme volatility of cryptocurrencies that can send investments far higher in a short period of time, price swings can go in both directions, and for some risk-averse investors, the roller-coaster ride of crypto investing can prove to be too much.
Regulatory Uncertainty
Although the current Trump administration appears to be crypto-friendly, this outlook isn’t shared by all global governments. With many regulators around the world still uncertain about how to handle cryptocurrency, news of crackdowns and changes could not only hamper markets but also remove investor access to their holdings entirely.
Security Threats
According to the Federal Trade Commission (FTC), U.S. citizens lost $1.4 billion to cryptocurrency scams in 2024 alone. Security risks have plagued the cryptocurrency landscape, with hackers and malicious entities circling in a bid to swindle digital assets from their rightful owners.
Although cryptocurrency operates with the help of a blockchain, which acts as an immutable ledger, phishing scams and crypto rug pulls are a constant threat to unwitting investors. If you’re unsure whether you’re at risk of being scammed or whether your chosen exchange is secure, it’s best to be cautious.
Is Crypto a Good Bet Right Now?
If you have a strong risk appetite and are looking to add speculative investments to your portfolio, cryptocurrencies can be a lucrative wealth-building strategy.
Although the larger market capitalization of cryptocurrencies suggests that we may not see another 10,000% rise in the coming eight years like we did in Bitcoin’s performance between 2017 and 2025, it’s reasonable to expect sustainable crypto projects and digital currencies to continue growing while investor appetite remains strong.
However, leading asset managers like BlackRock Inc. (ticker: BLK) have warned against putting all your eggs in one basket when it comes to crypto, recommending that investors allocate no more than 2% of their portfolio to Bitcoin to appropriately balance earning potential and risk.
Investors Are Embracing Crypto. Should You?
It’s not a matter of asking yourself whether now’s a good time to invest in crypto. What you should be thinking about is whether your financial goals can involve taking on the exceptional levels of risk that cryptocurrencies carry.
While Bitcoin is a relatively strong investment option as a store of wealth, smaller-capitalization altcoins can present a wide range of opportunities and risks for investors, and it’s essential that you do your due diligence before purchasing an asset.
Cryptocurrency investing has become a popular consideration for millions of investors. In understanding the risks, you have the best chance of getting the most out of your crypto investment strategy.
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Investing in Crypto: Pros, Cons and Whether It’s a Good Bet Right Now originally appeared on usnews.com
