Should You Buy Crypto Or Sit Out? A Clear Guide To Smarter Choices

Should I Invest In Crypto, Or Sit It Out?

Crypto might be everywhere right now, but that doesn’t mean it fits your plan by default. We dig into the real question people are asking: should you invest or sit it out? Jason Taylor, CFP and creator of MyPocketFP  separates hype from strategy, unpack key risks that don’t show up on price charts, and share simple ways to approach crypto without blowing up your budget.

We start by challenging the “easy money” myth and explaining how crypto differs from stocks and bonds. Stocks tie to businesses that produce cash flow; crypto—especially Bitcoin—behaves more like a currency-like asset driven by network belief and scarcity. That distinction shapes expectations for returns, risk, and the role crypto can play alongside your core holdings. From there, we talk custody: exchange failures, hacks, lost keys, and why platform choice matters as much as the coin itself. If you can’t clearly explain where your crypto lives and how you’d recover it, you’re taking risks you may not realize you’re taking.

Looking for a practical entry point? We cover how ETFs can simplify exposure, make cashing out easier, and reduce operational headaches for smaller allocations. Jason lays out a clean rule of thumb: treat speculative positions like Vegas bets—money you don’t need now and won’t miss if it goes to zero. We touch on manias and cycles—tulips, beanie babies, and what happens when people who never invest suddenly want in—and we end with the quiet powerhouse of a real plan: diversification. Keep your core in broad, low-cost funds, size crypto modestly if it belongs at all, and use rebalancing to keep risk in check as markets move.

Want a portfolio that sleeps well at night while still leaving room for curiosity? Press play, learn how to place smarter bets, and decide whether crypto earns a seat at your table. If you find this helpful, follow the show, share it with a friend who’s crypto-curious, and leave a quick review so more listeners can build better money habits with us.

To learn more about MyPocketFP visit:
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Transcript

Welcome And Show Setup

SPEAKER_00 0:03

Welcome to My Pocket FP, the podcast where your wallet finally meets its financial planner and they actually get along. Join your host, Jason Taylor, certified financial planner, money mentor, and your guide to financial freedom. Whether you're planning for retirement or just trying to figure out where all your money went last weekend, we've got you covered. Get ready to take control of your financial life with smart tips, surprising insights, and yes, an app that fits right in your pocket. This is My Pocket FP, because your future deserves more than guesswork.

SPEAKER_02 0:52

Crypto is everywhere, but is it right for your portfolio? Let's break down the risks, rewards, and realities. Welcome everyone. I am Millie M, co-host and producer. Back in the studio, Jason Taylor, certified financial planner and creator of My Pocket FP. How are you, Jason?

SPEAKER_01 1:09

Doing well. Thanks, Millie.

SPEAKER_02 1:11

Excited to be back with you, as always. Today's question is: should I invest in crypto or sit it out?

SPEAKER_01 1:20

That is a loaded question, as always.

SPEAKER_02 1:22

It is.

SPEAKER_01 2:02

Do your own research. And just in time and doing the research, you can usually come up with a good decision on what to invest in. Whether it's crypto or a stock or buying a house. Do your research.

Misconceptions And Risk Reality

SPEAKER_02 2:17

That's the beautiful thing about the World Wide Web is that there's a lot of information at our easier nowadays, yes. Yeah, we don't have to just take some internet person's word for it because there are a lot of them out there, and a lot of them make their money from selling you a system versus actually having invested in crypto. So what do you think are the biggest misconceptions people have about crypto investing?

SPEAKER_01 2:44

I think it's that it's easy money, um, because that's the way it seems. I mean, seeing how far Bitcoin's gone and Ethereum and um, you know, the Dogecoin and all these, you know, meme coins, it seems like easy money, but anytime it looks like it's easy money, it goes both directions.

SPEAKER_02 3:03

With high risk, it's definitely uh there could be some high rewards, but there's definitely some high risk too.

SPEAKER_01 3:09

Exactly. Yes.

SPEAKER_02 3:10

Talk to us about how crypto uh differs from traditional investments like stocks and bonds.

SPEAKER_01 3:15

Well, with stocks and bonds, you're actually investing in a company. My girls have Disney stock, and so I would tell them they own a rocket Disneyland, they own a piece of the company.

SPEAKER_02 3:26

I'm going for a churro. I own this because I have stock now.

SPEAKER_01 3:31

And as the company grows, they they grow. Um, and with you know, with with crypto, and it's once again, it's they're all different kinds of crypto. Um, but we'll just go with you know with Bitcoin. Um, it's basically like buying another um you know, like a euro or a different you know uh type of you know um currency. Currency, yes.

SPEAKER_02 3:58

Wow. Well, are there specific risks people should be aware of before diving in, other than just it's high risk?

SPEAKER_01 4:06

You know, once again, I am not an expert in this, um, but you know, even you know where you hold your crypto can make it riskier. Um, you know, we've had companies go completely under that held crypto, and anyone who had it with them lost it. Um and you know, another high risk, you know, my my buddies always make fun of me because I was talking about you know Bitcoin when it was back in the 90s, like$90. Oh wow, and they always laugh and I said, Yeah, but Jason, you would have been the guy who bought a pizza with it. Or you know, the the the guy who you know threw away his code and it's in the the dump somewhere and he can't find it and it's worth you know millions.

SPEAKER_02 4:45

Yes.

SPEAKER_01 4:46

Um they said you would have been that guy had you bought it you know 10 years ago.

SPEAKER_02 4:50

You didn't under even understand the value of it back then, didn't have a clue what it was. It was you know it's a big long code to get into it, and I would have been the one who can even translate that into US dollars. Is there I I don't know anything about it either. Is there a way to say I have this many Bitcoin and now I'm gonna cash it in for actual dollars?

SPEAKER_01 5:13

You know, through Coinbase and you know different things like that, you can do that pretty easily. Um, you can also buy ETFs nowadays, which is probably the best route for people to take than buying it directly. Right. Um especially if they're gonna do it on a small scale.

How To Size Crypto: Play Money

SPEAKER_02 5:28

Right. So I think that would suggest Okay. I was just gonna say, is that your recommendation for balancing crypto with other uh broader financial um investments and in a complete plan is to just go with the ETF route.

SPEAKER_01 5:43

With investments like this, I always like to compare it to like Vegas. You know, just you know, plan on putting it black or red, walking away, and you either hit or you don't. And it's money that you don't need now and you don't ever need. It's your your your play money.

SPEAKER_02 6:05

Play money. Yeah, you're not in a tight if you lose it. So what's your just personal take on the future of crypto, fat or long-term asset?

SPEAKER_01 6:17

I once again, crypto is pretty broad. There's gonna be a lot of it that just disappears. Um, I like conceptually how it could work, and as far as bringing the monetary system worldwide together, um, I think we're a long way from that though. Um and a lot of you know smart people I talked to are comparing it to the you know the tulip craze, you know, where you a tulip bulb was worth you know a lot of money and then it went to basically zero.

SPEAKER_02 6:46

Yeah.

SPEAKER_01 6:47

Um, you know, back in the day. Um, you know, the the beanie baby craze.

SPEAKER_02 6:53

I was just talking to someone about that last night. It's funny how it's coming back up again.

SPEAKER_01 6:56

It's it's funny, yeah. But it's those one of those things where I really get worried when people who don't normally invest start talking about wanting to. And you know, people who are gonna be just throwing their money in and out, you know, that's when I start to worry about a certain asset class.

Diversification Over All-In Bets

SPEAKER_02 7:16

Yeah, I think for me personally, diversification is everything. I worry about people who put all their money into one thing. So when people see other people have made a lot of money with crypto, now they want to put everything into that. I'm just like, spread it out.

SPEAKER_01 7:35

Yeah, spread it out, exactly.

SPEAKER_02 7:36

Diversification is a lot of different things and what works, works, and it'll balance out some of those losses. Right. Thank you again, Jason. Very, very helpful. Catch you on the next time on My Pocket F.

SPEAKER_01 7:48

Thank you, Millie.

SPEAKER_00 7:53

Thanks for tuning in to My Pocket FP, where we believe small monthly changes can make big positive changes in your financial end game. If you're ready to level up your money game, head over to mypocketfp.com and download the app today. Your financial planner is now officially pocket sized and doesn't charge by the hour. Until next time, keep your goals high, your debt low, and your pockets smart.