Is Cryptocurrency a Legitimate Part of a Long-Term Investment Portfolio?
Key Points
Most experts consider crypto to be a legitimate asset class.
That doesn't mean every asset in the class is equally legitimate or worthwhile.
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Just a few years ago, many financial advisors wouldn't touch crypto. That era is now over; according to a 2026 survey conducted by Bitwise, an asset manager, 32% of the financial advisors they polled allocated crypto in client accounts in 2025, and 99% planned to maintain or increase their exposure.
But crypto isn't a monolith, and not all crypto assets are equally legitimate as part of a long-term portfolio, so let's take a look at what's legitimate and sort it from what's sketchy.
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The professionals have spoken
Among professional investment advisors who allocate on behalf of their clients, 83% keep their exposure under 5%, with an allocation of 2% as a starting point. The takeaway is that the relatively new legitimacy of crypto as an asset class is not an excuse to let it become your entire portfolio.
But which assets are the most widely accepted?
The answer to that question is Bitcoin, (CRYPTO: BTC) as it has the deepest liquidity in crypto and the biggest regulated vehicles for investment, like spot Bitcoin exchange-traded funds (ETFs). Ethereum and Solana are also generally endorsed as legitimate investments, with each backed by spot ETFs and growing institutional interest.
But below those three, professional interest drops off fast, and for most investors, yours should too.
Where to draw the line
Bitcoin, Ethereum, and Solana share traits that earn them a place in long-term investment portfolios. Smaller altcoins, ecosystem tokens, and meme coins generally do not have those traits, and you probably shouldn't be investing in them heavily, if at all.
Volatility alone doesn't disqualify an asset or make it illegitimate. The disqualifier for those smaller tokens is most typically their lack of a strong investment thesis.
So if you're considering an investment in crypto, keep it fairly small, anchor it in Bitcoin, and avoid speculative tokens.
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Alex Carchidi has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
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