The interest in cryptocurrency has experienced a dramatic surge, with searches for 'crypto' on Google Trends increasing by 300% compared to the preceding five years. According to the Charles Schwab 2025 Modern Wealth Survey, 41% of surveyed Americans now consider crypto a good investment, though they still view it as high risk. The total crypto market cap has grown by approximately 2,600% since July 2017, rising from $77 billion to $2.19 trillion. This growth has been driven by institutional investment, spot exchange-traded funds, and developments such as real-world assets being tokenized onchain.
Current portfolio allocation data reveals that stocks comprise 25% of investor portfolios, followed by mutual funds at 13%, bonds at 8%, and cryptocurrencies at 10%. As reported by the Charles Schwab survey, 53% of all crypto investors consider it a high-risk venture due to the asset class's volatility since inception. The survey found that two-thirds of American investors believe they must look beyond traditional investment products for better success, indicating a growing appetite for alternative assets.
According to the survey findings, half of Americans agreed that investing today requires more short-term risk than in the past. BlackRock recommends a 1-2% allocation to Bitcoin specifically, emphasizing the importance of only investing in crypto what can be afforded to lose. The report suggests that investors should consider dollar-cost averaging into bear markets and being comfortable with price swings, while maintaining consistency in their approach. This approach would involve choosing established exchanges and buying top-cap crypto assets, or moving toward ETFs, while maintaining the same key principles of consistency, risk management, and financial knowledge as with any other investment options. Recent market data supports this strategy, as Vanguard's 2023 study found that 68% of the time, lump sum investing outperformed dollar-cost averaging over time.
The survey reveals that investors with a multi-year outlook would be less likely to react to market hype and panic cycles, while shorter-term investors might seek steadier returns. As reported by the Charles Schwab survey, depending on where crypto is in its cycle, such expectations could be pleasantly satisfied or face disastrous results. The report emphasizes that whether crypto proves to be a good investment for an individual comes down to their specific goals, investment targets, risk appetite, and time horizon, with consistency and financial knowledge remaining key regardless of the chosen investment approach. Historical market data supports this approach, as the S&P 500 has produced positive annual returns in 35 of 46 years despite experiencing average intra-year drops of 14.2% from 1980 to mid-2026.
