Crypto is a volatile investment. Of course we all know that.
But honestly, if you don’t have, or have never had, any traditional investments, you probably shouldn’t be here.
My mates ask me all the time to get them into crypto. I ask them how they would feel if they put in 1k and a month later it was worth 20% less. They say they would sell. I tell them I'll help them with index funds, once they've done that for a while we can talk crypto. They never do because I show them charts and the losses scare them.
My portfolio is down roughly 40% over the last 4 months.
Am I worried? No. Would my friends be? Yes.
But I believe in the tech, I understand the risk, and I knew exactly what I was signing up for.
More importantly: this isn’t my first time weathering a crash. Whether that is crypto or traditional fiat based investments.
I’ve been invested in the stock market for a long time, mostly through tracker funds. I’ve lived through multiple crashes. It toughens you. It makes you enjoy the chaos and volatility just because it's entertaining.
Most recently the April 2025 Trump tariff crash. Before that, Covid. Watching a 30% drop and then slowly seeing it claw its way back. Not fazed.
I’ve also owned plenty of individual shares that went all the way to zero.
So losing 40% in crypto over 4 months?
I’m indifferent.
I’m about 95% confident that in 5 years this will look like a blip the same way the COVID dip does when you zoom out on an index fund chart.
And the other 5% of me accepts that this could be a slow downward spiral or a sudden crash to zero. If it goes to zero, my life won't be affected. My crypto makes up 5-15% of my total portfolio.
Just like investing in individual stocks, you accept the risk of total loss in exchange for the potential for ridiculous gains. If you can’t live with that, you shouldn’t be here, it doesn't suit your risk tolerance.
Try index funds or cautious funds. Some products offer exposure to market gains with backstops to guarantee you'll receive your initial deposit back. Other products offer "smoothed returns". There is a lot of choice out there.
If you can’t stomach a 10–20% drop over a year, what the fuck are you doing investing in an asset class that can drop that in a week?
Crypto isn’t for everyone.
And that’s okay.
Some people want zero risk of capital loss and a steady 3% per year.
Some want very little risk and 5% per year.
Traditional, adventurous investors are happy with higher risk to average 8-10% per year.
I'm happy with total loss in order to generate 50%+ per year.
But if you’re here, at least be honest with yourself about whether the risk of loss in crypto allows you to sleep at night.