Crypto may be more mainstream than ever, but that doesn’t mean Americans are sleeping well after buying in.

A recent National Cryptocurrency Association study shows 55 million Americans now invest in cryptocurrency. (1)

“Some use it to invest in their financial future, others for art and games, and still more are simply curious and testing the waters,” the NCA said in the report. “In addition, many are already using crypto to make everyday purchases.”

But not everyone’s going in with confidence. A recent Gallup survey (2) found a strong majority of respondents view cryptocurrency as risky, with 55% saying it’s “very risky” and roughly another third say it is “somewhat risky.”

For good reason: many investors have already lived through multiple crashes. The 2022 collapse that wiped out roughly $2 trillion in market value still lingers, and fresh price swings (3) may not be helping.

That tension — millions jumping in, millions staying skeptical — says a lot about where crypto stands today. The enthusiasm is real, but so are the nerves.

“The bottom line is, bitcoin is for normies now,” Interactive Brokers chief strategist Steve Sosnick told CNN. “As a result, the normies are going to view it as another speculative holding in their portfolio… it’s going to be treated like a volatile mainstream investment.”

Whether you’re a ‘normie’ investor or someone who believes crypto is the future, we’ve got some tips on how to prepare for investing in this alternative currency, including bracing yourself for the highs and lows.

Crypto’s appeal has always been tied to its potential for huge upside. Bitcoin hit all-time highs in multiple cycles; newer tokens sometimes rise hundreds of percent in weeks. Ethereum, Dogecoin and Solana each had periods when early adopters walked away with massive gains.

But the same volatility is what makes crypto inherently high risk: Coins can lose half their value in a matter of days. Platforms can collapse. Hacks (4), fraud and regulatory crackdowns (5) also continue to shake the market.

The surge in participation isn’t necessarily a sign that crypto has become safer. A Security.org study found that 40 percent of people who said they own cryptocurrency also reported they weren’t confident the technology is safe and secure. (6)

“There’s good reason to be wary,” the report’s authors said. “Nearly one in five respondents who currently own cryptocurrency say they have had difficulty at some point withdrawing their funds from custodial platforms.”

Crypto can complement a broader investing strategy, but it probably shouldn’t replace one. Financial planners generally recommend keeping crypto exposure to between 1% and 5% of a portfolio (7), given its volatility.

Diversification helps manage these risks. Blending crypto alongside stocks, bonds, real estate and cash reduces the impact of any one asset crashing. That can cushion your losses and stabilize long-term returns, while helping prevent emotional decision-making, like panic-selling during big dips.

Read More: This is the quiet portfolio shift many wealthy investors are making in 2026. Should you consider it too?

New investors often buy into crypto during high-flying moments, only to panic when prices reverse. But crypto’s history shows that huge drops can rival huge gains. That’s why experts say investors need to expect volatility from day one.

A few practical strategies can help. Start with dollar-cost averaging, which involves investing a fixed amount on a regular schedule to help smooth out the market’s ups and downs.

You may also want to consider a long-term horizon. Crypto is not a short-term savings vehicle. Treating it like a high-risk, high-reward asset helps set realistic expectations.

And knowing your exit strategy is crucial: Knowing when to sell or hold helps avoid impulsive decisions driven by headlines or hype.

Crypto may be easier to buy than ever, but it still exists in a fragmented ecosystem. Tokens differ significantly in purpose (8), technology, and risk level (9), and exchanges vary in security and oversight.

Before investing, consider:

The purpose: What does the coin do? Who is behind it? Does it solve a real problem?

Checking exchange security: Look for exchanges with strong track records, robust insurance protections and transparent operations.

Avoiding hype-driven bets: Many investors who lost money in past collapses purchased tokens without understanding what they were buying.

Storing assets safely: Hardware wallets or “cold storage” add an extra layer of protection against hacks.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

National Cryptocurrency Association (1); Gallup (2); CNN (3); Bloomberg (4); KPMG (5); Security.org (6); WealthManagement.com (7); FINRA (8).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.