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.

• 10 stocks we like better than Bitcoin ›

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.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

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.

Should you buy stock in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $550,348! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,127,467!

Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

**Stock Advisor returns as of April 11, 2026. *

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.