You probably rolled your eyes when you first heard about young trendsetters diving into cryptocurrency, all the while feeling a bit lost about what it really was.

You laughed when Bitcoin first reached $1,000 back in 2013. You were skeptical as it neared $20,000 just four years later.

However, when Bitcoin recently surged past the $100,000 mark, your feelings shifted: perhaps it was envy, self-doubt, or a sense of accepting you missed out.

Lately, you’ve even considered investing in cryptocurrency at long last. But, you’re worried that you might have missed your chance. Whether that’s true depends on your financial aspirations, how much risk you’re willing to take, and your investment timeline.

Cryptocurrency often resonates with younger generations. According to Craig J. Ferrantino, head of Craig James Financial Services in Melville, New York, speaking earlier this year to YSL News, “every millennial knows someone who has become a crypto millionaire.”

If you belong to an older age group, you might not even know someone who can explain what cryptocurrency truly is.

What exactly is cryptocurrency?

Cryptocurrency is a form of digital currency. Unlike traditional money, it isn’t managed by governments or banks; it operates on decentralized networks and relies on blockchain technology to monitor transactions and ownership. Bitcoin is the most recognized among them.

In the past, average investors wanting to get into cryptocurrency typically needed to use a crypto exchange, which could be quite daunting for beginners. This changed in early 2024 when U.S. regulators allowed regular American investors to buy and trade Bitcoin ETFs, similar to how they trade stocks.

(Exchange-Traded Funds, or ETFs, function like mutual funds as an investment option.)

Bitcoin recently soared past $100,000, partly due to speculation that a second Trump Administration would favor its growth. During his campaign, Trump promised to turn the U.S. into the “crypto capital of the world.”

Is it too late to dive into crypto? Has the “Trump effect” worn off? And if you do decide to invest in digital currencies, how much actual cash should you risk?

We consulted some experts about this. Here’s what they had to say.

If you haven’t invested in cryptocurrency, is it too late?

“It’s not too late to start putting money into cryptocurrencies,” stated Caleb Silver, editor-in-chief of Investopedia.

However, you should consider your reasons for doing so.

If making a profit from Bitcoin’s rise is your primary motivation, “you need to keep in mind that all cryptocurrencies, including Bitcoin, are very volatile, unregulated, and often misunderstood,” Silver warned.

Bernd Schmid, a contributing crypto analyst at The Motley Fool, shares a similar sentiment.

“It’s not too late to start with crypto,” he said, “provided you keep a long-term perspective. Cryptocurrency adoption today reminds me of where internet adoption was in the late 1990s and early 2000s.”

Bryan Armour, director of passive strategies research for North America at Morningstar Research Services, advocates for caution regarding investments in crypto.

“While it’s not too late, that doesn’t guarantee it’s a wise investment,” he cautioned. “Cryptocurrency continues to be a speculative investment with significant price fluctuations. If you’re uncomfortable with this, there’s no reason to invest.”

On a more skeptical note, Jonathan Swanburg, a certified financial planner in Houston, voiced his doubts.

“I don’t typically invest in crypto,” he said, “but if you were hesitant about it at $20,000, I think you should reconsider why you would want to invest now that it’s at $100,000, unless it’s merely the fear of missing out (FOMO). So, yes, I do believe it’s too late.”

Has the ‘Trump effect’ influenced bitcoin? Will its value continue to rise?

“Yes and no,” Schmid replied.

“Yes, because the initial market underestimation of a crypto-friendly government has been adjusted, indicating that bitcoin’s current value reflects the Trump effect.”

“No,” Schmid added, “due to the lack of substantial regulatory updates in a potential second Trump term.”

Silver shares this sentiment.

“While the election’s influence on cryptocurrency prices may have been realized, the Trump administration is preparing to establish an entirely new regulatory framework for this sector by appointing David Sacks, an ex-PayPal executive, as the country’s initial crypto czar, alongside nominating Paul Atkins, a Wall Street veteran, for the SEC chair.

“These actions, coupled with Trump’s pledge to transform the U.S. into the ‘crypto capital of the world,’ could facilitate wider access to cryptocurrencies for retail investors, potentially driving prices up.”

What if you’re interested in buying crypto but unsure how?

“Beginner investors can ease into cryptocurrency investments,” Silver suggested, “by setting up an account with an online brokerage and purchasing specific tokens or coins for a small dollar amount.”

This means you don’t need to invest $100,000 to own crypto.

“Alternatively, purchasing spot bitcoin ETFs can be beneficial; they mirror the price of bitcoin and are available via many prominent online brokers,” Silver explained. “Although these ETFs do not confer ownership of the actual digital currency, they closely follow its price and can be traded like stocks throughout the day. Investors should target the largest funds with significant assets, a high liquidity, and low expense ratios when choosing a spot bitcoin ETF.”

Armour offers specific ETF suggestions: iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund are reliable options from well-known brands with low fees and easy trading, he stated. Bitwise Bitcoin is another choice, as it is from a company that is deeply involved in the crypto space, which some investors may value.”

Swanburg advises caution for those looking to delve into the crypto landscape.

“I’d recommend sticking with the ETF to avoid the logistical challenges and potential estate issues of holding crypto outside traditional investment accounts,” he said. “While I don’t advocate for crypto investments in general.”

What amount is advisable to invest in crypto?

“For those new to crypto or any investment type, it’s crucial not to invest more than you can afford to lose,” Silver cautioned. “All cryptocurrencies are speculative and risky assets that lack regulation. While it’s easy to be swept up in the excitement,” he warned, the significant downside to crypto is its “extreme volatility. Aim to risk no more than 5% of your portfolio as you start.”

Armour echoes the 5% guideline. “Research indicates that bitcoin’s volatility can disrupt a portfolio if you invest more heavily,” he noted. “That threshold could be a sensible limit for long-term investors.”

Swanburg, with a different perspective, suggests investing “as much as you would feel at ease investing in a Beanie Baby collection from 1998.”