Autor Cointelegraph By Aaron Wood

Poland stalls on crypto law, forcing local companies to move abroad

Poland stalls on crypto law, forcing local companies to move abroad

Uverejnil používateľ | apr 21, 2026 |

Poland’s parliament, the Sejm, has yet to pass a domestic enabling act for the EU’s regulations on cryptocurrencies. The parliament has again failed to override a presidential veto on a key crypto regulation bill. President Karol Nawrocki defended his veto, citing concerns over excessive regulation that could harm small businesses. Opponents state that the lack of framework makes the Polish market vulnerable to fraud and free-for-all for illicit actors. The political path forward is unclear.Outside the political arena, the reality is that Poland is the only EU member state left to implement the bloc’s Markets in Crypto-Assets (MiCA) regulatory framework. The deadline for the transitionary period ends on July 1.This already makes it difficult for local firms to stay competitive in Europe. But after July 1, if a solution isn’t forthcoming, it will be impossible. Some are already taking their business elsewhere and moving abroad.Crypto industry, Polish president claim bill is burdensomeIn November 2025, the Sejm passed the Crypto-Asset Market Act, which would update Polish law to comply with MiCA.Local enterprise groups were not pleased with the result. In an October letter, the Warsaw Enterprise Institute, a business-focused think tank, outlined a few of the perceived problems with the law.First was the length. Including draft secondary regulations, the total length was well over 300 pages. The Warsaw Enterprise Institute said that, while other EU member states were satisfied with just a few dozen pages, “the Polish law has several hundred articles and provides for additional regulations.”It said the act introduces “a ban on marketing activities related to basic cryptocurrencies and the possibility of blocking websites by administrative decision, without the right to appeal to a court.”“Such solutions are not justified by MiCA and put Polish companies in a worse competitive position compared to entities operating in other EU countries.”.Of further concern was the role the Polish Financial Supervision Authority (KNF) would play under the new regime. Under the law, the KNF would be the sole regulator of the entire crypto market. It would have the power to levy heavy fines as well as maintain and enforce a blacklist of “unreliable” crypto domains that Polish ISPs would have to block. Not only would the KNF be incredibly powerful, but it is already notoriously slow. According to a payment institution peer review by the European Banking Authority, the KNF’s authorization times were the slowest in Europe. In an October letter, the Warsaw Enterprise Institute claimed that the KNF has only issued two licenses for brokerage houses in the last 10 years. In the same time period, it has only issued one electronic money institution license, while Lithuania has registered over 100. Source: European Banking AuthorityRelated: EU crypto firms turn to legal support as deadline for MiCA compliance nearsOn Dec. 1, 2025, Nawrocki vetoed the law, citing bloated regulation. The government failed to override the veto, and then reintroduced the exact same bill. Nawrocki vetoed the bill for a second time in February, and on April 17, the Sejm repeated itself in failing to overrule the veto.Polish parliament struggles to find path forward for MiCAThe battle over the crypto bill shows no signs of stopping. Firstly, for Nawrocki, passing the bill after being reintroduced in the same form would have presented a political problem.Piech told Cointelegraph, “Once the president had already argued that the bill breached constitutional principles and contained excessive, disproportionate and vague provisions […] signing a near-identical version would have meant contradicting his own stated reasoning.”“In that sense, the second push looked less like compromise and more like an attempt to pressure the president into a constitutional U-turn.”Some in the crypto industry hailed the veto as Nawrocki sticking to his pro-crypto, sound regulatory principles.“The veto is not anti-regulatory, it brings common sense back into the law-making process. […] The industry did not ask for privileges. It asked for proportionality,” said Sławomir Zawadzki, co-CEO of Kanga Exchange.Different coalitions and groups have attempted to introduce their own versions. According to Piech, Finance Minister Andrzej Domański said that the government started work yesterday on solutions for a new crypto-asset bill. In December, after the first veto, the Polska 2050 political party announced “an improved draft that is a step forward from the President’s arguments, which, although far-fetched, are perhaps worth considering.”Nawrocki himself has said he would submit a draft but the speaker in the Sejm has blocked the introduction of presidential proposals. The Confederation of Liberty and Independence and the Law and Justice have filed versions, while another political coalition, the Center Club, announced it would prepare another draft. Overall, Poland’s political class is “still deeply split on crypto.”“This is no longer just a technical argument about implementing MiCA. It has become a broader fight over whether crypto should be brought into a normal legal framework, or treated as a politically suspicious sector that can be overregulated, stigmatised or used as a proxy battlefield after the Zonda Crypto controversy,” he said.Polish Prime Minister Donald Tusk, himself a member of the Civic Coalition, has accused local exchange Zonda Crypto of illicit funding and ties to Russian criminal networks. It has undergone a funding crisis, pausing withdrawals, and has reportedly lobbied against the bill. The founder of BitBay (now Zonda Crypto), Sylwester Suszek, went missing in 2022. After his disappearance, the exchange entered a funding crisis. Source: YaguarRelated: Zonda exchange says 4.5K BTC wallet inaccessible amid withdrawal crisisTusk also claimed that it “sponsors political and social events in Poland and promotes very specific political forces,” including the opposition far-right Law and Justice party, of which Nawrocki is a member.Zonda Crypto did not respond to Cointelegraph’s request for comment. Polish crypto companies look abroadFor companies in Poland, passing a new law by the end of the MiCA transitional period on July 1 may be a case of shutting the barn doors after the horses have bolted. Said Piech, “A new law may still matter institutionally, especially for banks and larger financial institutions that may want to enter crypto once there is a clear legal path. But for all existing Polish crypto firms, it is already very late.”Some domestic crypto firms are already looking abroad. Crypto exchange Kanga is considering a move to Latvia, “a country whose representatives have openly used conferences in Poland to attract crypto firms, offering a MiCA-friendly regime, faster procedures and relatively low supervisory fees,” per Piech. Robert Wojciechowski, president of the Polish Chamber of Commerce for Blockchain and New Technologies, said, “Since we founded the chamber, about 70-80 percent of companies have sailed abroad. Now my colleagues say they are talking to the Czech Republic to move their business there.”The Chancellery of the President has itself raised the alarm, stating that, “Overregulation is a guaranteed way to push companies abroad — to the Czech Republic, Lithuania or Malta — instead of creating conditions for them to operate and pay taxes in Poland.”Zonda Crypto CEO Przemysław Kral has previously told Cointelegraph, “Although we are a company with Polish roots and the largest player in the crypto industry on the Polish market, we have been operating outside Poland for years.”“We are confident that we will remain a key player on the market. However, many small Polish crypto companies will lose the opportunity to operate on the market,” he said.Now it’s a race against the clock, as July 1 draws closer. Piech doesn’t see a “realistic chance” for a bill to pass, and if it doesn’t, “domestic firms without a functioning Polish route are left at a structural disadvantage.”Magazine: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1MCointelegraph Features publishes long-form journalism, analysis, and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Research or perspective in this article does not reflect the views of Cointelegraph as a company unless explicitly stated. Content published in Features does not constitute financial, legal, or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence. The selection, commissioning, and publication of Features and Magazine content are not influenced by advertisers, partners, or commercial relationships. This content is produced in accordance with Cointelegraph’s Editorial Policy.

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Cryptocurrency trading addiction: What to look out for and how it is treated

Cryptocurrency trading addiction: What to look out for and how it is treated

Uverejnil používateľ | máj 11, 2023 |

An often overlooked aspect of the cryptocurrency market’s reputation for volatility is the effect sudden market changes can have on the mental health of traders and investors.Addiction to day trading, or pathological trading, is already well-known among stocks and commodities traders and has been extensively documented by medical professionals. There are even rehab programs devoted to treating day-trading addiction.With its possibility of “life-changing” money for those lucky or savvy enough to catch it, the crypto market has generated its fair share of trading addicts.To get a better understanding of the mechanics of cryptocurrency trading addiction and how to recognize it, Magazine sat down with Tony Marini, senior specialist therapist at Castle Craig Rehab in Scotland, and Aaron Sternlicht, co-founder of New York-based private practice Family Addiction Specialist.

What is cryptocurrency trading addiction?

Sternlicht defines cryptocurrency trading addiction as the “persistent or recurrent pathological compulsion and obsession to engage in the behavior of investing in or trading cryptocurrencies despite negative consequences to personal and/or professional areas such as financial loss, disruption to relationships, career problems, mental health issues, and other such negative consequences.”

He believes that addictive behavior goes well beyond just buying and selling tokens. When a trader’s time is fully consumed with chart analysis, market research, data review, fundamental analysis or investor sentiment, there may be a problem.

It’s all about neurotransmitters

The body makes a neurotransmitter called dopamine that the nervous system uses to deliver messages between nerve cells. Sternlicht says that when the price of crypto goes up and someone completes a successful trade, they receive a rush of dopamine, bringing about a feeling of pleasure. 

“The volatility of cryptocurrency coupled with the fact that it can be traded 24/7 can result in excessive and regular boosts of dopamine that make it much more addictive than trading other assets such as stocks,” Sternlicht says. Over time, those who develop an addiction to cryptocurrency trading come to depend on it to bring on excitement and feelings of pleasure.

Dopamine molecule. (Sbrools, author’s own work)

Sternlicht says some stimuli that release excessive amounts of dopamine — such as sex, drugs, video games and social media — are more likely to become addictive. He believes that due to volatile price fluctuations, successful cryptocurrency trades fall into that category.

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In Georgia, crypto is a crucial tool for refugees escaping the war

In Georgia, crypto is a crucial tool for refugees escaping the war

Uverejnil používateľ | apr 20, 2022 |

I arrived in Tbilisi, Georgia, near Russia’s southern border, in late February — just a few days after Russian forces invaded Ukraine. I had been reporting on crypto and blockchain from St. Petersburg, but after the war started, staying there had become untenable. During my first week in the city, I searched for an apartment to rent and for ways to set up a basic bank account.I went to a major branch of the Bank of Georgia, the second-largest private bank in the country, next to Liberty Square in the city center. The bank had only been open for an hour, but it was already full of people waiting to meet with a banker.As I entered, a visibly frazzled teller at a help desk asked me point blank, “Russian?” I said no but that I wanted to open a bank account. She handed me an application form, a piece of receipt paper with a number on it, and told me to wait my turn.While I waited, filling out the bank application, I noticed that no one who was holding a red passport — i.e., a Russian passport — had been handed application forms. I watched Russian clients approach the bank windows. Each was invariably handed a long list of required documents they must produce in order to open a standard bank account with a debit card. The list included six months’ worth of transaction records, translations of passports, and a copy of a work contract.I began to worry because, as far as I was aware from my own research, none of this was previously required. As I approached the window, the banker reflexively reached for a copy of the list of required documents — until I showed my American passport. Within a half-hour, my application was processed, and the banker told me to stop by the next day to pick up my card.Your papers, pleaseMoney issues are further complicating the lives of Russians and Belarusians who have come to Georgia to escape draconian crackdowns at home. Telegram channels devoted to Russians relocated abroad are flooded with questions about how and when people were able to move their money.Sanctions from major banks, payments firms and card issuers such as Mastercard and Visa, in addition to strong capital controls at home, have left Russians in Georgia with little means to access their savings in Russian banks. They face further difficulties at Georgian banks, where once relatively lax requirements for opening a bank account have been replaced by intensive Know Your Customer procedures for hopeful clients. Reports surfaced on social media of some banks requiring Russian and Belarusian applicants to make sworn statements that Russia is the aggressor in an illegal war on Ukraine, recognize Abkhazia and South Ossetia as parts of Georgia, and swear to counteract propaganda.Given recent laws about “anti-Russian propaganda” and disseminating misinformation about the “special operation” in Ukraine, signing such a statement could constitute a crime if the signatory returned home to Russia.Crypto without questionsSome Russian friends who know I work in crypto media asked me if there was any way to use crypto to access their funds.Buying crypto is still largely unregulated in Russia, with small exchanges requiring only very basic KYC procedures, if they require them at all. And since any transactions via bank card still happen within Russian territory, residents needn’t worry about sanctions on credit card companies when buying crypto on a local exchange.These small exchanges were quick to catch on to the spike in demand, and many were selling major coins like Bitcoin and popular dollar-based stablecoins like Tether at premium prices, some well above their adjusted value in dollars.But smaller, less popular coins like Litecoin were still relatively fairly priced in the first two weeks following the onset of the war. One friend shifted the majority of their savings into Litecoin via a Russian online exchange. Once their phone-based wallet pinged them with a notification that they had received their LTC, they went straight to one of several physical crypto exchanges in Tbilisi to sell their coins for dollars.I, myself, ventured to one such exchange to sell some Ether for cash. On its website, the firm maintained its apolitical status and compliance with Georgian law. I’m not really sure what I expected to see when I arrived, but what I found was a rather humble affair.The small room in the crowded office building in the city center had two desks and a few chairs for clients to relax while block confirmations went through. In the single window, neon Bitcoin, Litecoin and Tether signs glowed. Miniature Georgian and Ukrainian flags were stuffed into the potted plants.As I arrived, a small group of clients speaking Russian were leaving, thanking the two staff who sat at their respective desks. The staff asked how they could help me, and I said I would like to sell some crypto.What kind? Ether. How much? About $2,500 worth.They gave me an address, and I sent the crypto. After the transaction was confirmed, a cash counting machine whirred, spitting out the exact amount in U.S. dollars, which the staff carefully counted again on the desk in front of me. The whole process took about 10 minutes.I was not once asked about my nationality, ID or business in Tbilisi.Dollars in hand, I made small talk with the staff. The operators of the exchange, who prefer to remain anonymous, said that the vast majority of their customers in recent weeks had been Russian or Belarusian and that the flow of clients had been more or less nonstop.This was just one of several physical crypto exchanges in the capital of Georgia, which maintains laissez-faire laws on cryptocurrency. It has no licensing scheme for crypto trading, and crypto traders do not have to pay tax on income or gains. The sale of crypto and hashing power both abroad and domestically is also exempt from the country’s value-added tax.No RussiansThe capital city of just over 1 million residents has found it difficult, both materially and politically, to absorb the thousands of new arrivals from Ukraine, Belarus and especially Russia.And while many of the city’s cryptocurrency-centric businesses observe a live-and-let-live approach to their clientele, many other businesses and services are outright discriminatory.Take one example: Much of the city’s residential rental property was snatched up in the weeks leading up to and following the start of the conflict. Now, well over a month into the war, there’s little to choose from for the crowds of Russians who are still arriving.Supply issues aside, Russians also face discrimination from landlords. When contacting real estate agents in the city, the first question I invariably faced, even as an American, was, “Are you Russian?” — followed by something like, “We will need to see your passport before we can move forward.” Several real estate agents I spoke to said landlords have a “no Russians” policy.In a local cafe, I overheard an exasperated Russian man talking on his phone to someone I assumed was a real estate agent. He rattled off a list of requirements — like the number of bedrooms, the price range, needing a stove and washing machine — that he’s desperate to find:“My wife and I are renting a room in the city center right now, and she is hysterical. She says there’s nowhere to cook, no washing machine to clean our clothes. She says she wants to go back. I say, ‘What do you mean go back? We can’t go back, not for anything. We’re here…’”While I can’t approve of such outright discrimination, I can understand how it came about.In 2008, Russia supported separatists in the Georgian breakaway regions of Abkhazia and Tskhinvali, now known by many as South Ossetia. The subsequent war in August 2008 lasted 12 days and left many areas bombed out and scarred. Years later, the conflict has given the Georgian people a strong sense of solidarity with Ukraine, and bitter resentment toward Russia.An instrument, not a solutionAlmost all of the Russians I have met in Tbilisi have used crypto to move at least some part of their savings. And while this initially seems like a success story — a time for crypto to shine as the decentralized future allowing people to control their own savings — I think it is important to zoom out.Cryptocurrencies, like any other technology, are only as good or as useful as the people and human institutions who surround and implement them. While many libertarian-minded crypto-maximalists will no doubt laud the technology and its apolitical design amid this Russia-Georgia context, the only thing allowing it to be successful is the people and businesses on both ends of the transaction connecting traditional financial systems to blockchain-based, decentralized ones.If the Russian government required exchanges to implement more robust KYC protocols — as they do with bank accounts and foreign currency transactions — citizens could not buy crypto, or they’d be severely limited in how much they could buy and subsequently save.If the Georgian government required exchanges to follow the same robust, almost impossible KYC measures that private banks are currently implementing, it would be incredibly difficult for Russian immigrants to sell their crypto in order to pay rent, buy food and organize transportation.If the exchange operators allowed their political stance to determine their clientele, the crypto-owning public could find their options for buying, selling and withdrawing assets further limited.Crypto, like most other new tech praised upon its creation as apolitical or neutral, becomes political in the hands of the people who use it and regulate it.Aaron Wood is an editor at Cointelegraph with a background in energy and economics. He keeps an eye on blockchain’s applications in building smarter, more equitable energy access globally.The opinions expressed are the author’s alone and do not necessarily reflect the views of Cointelegraph or its affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice.

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Top universities have added crypto to the curriculum

Top universities have added crypto to the curriculum

Uverejnil používateľ | apr 15, 2022 |

The world of digital assets saw a significant rise last year. The total cryptocurrency market cap reached $3 trillion, making more people, governments and universities take a closer look at the asset class.The presence of crypto in the world’s major economies has created a big opportunity for diverse startups in the industry, leading to a massive demand for digital assets. This newly born market has helped develop more working and educational opportunities, among other things.Furthermore, some of the world’s top universities and educational institutions including MIT, the University of Oxford and Harvard University, have added pieces of the burgeoning technology to their curriculums. Here are some of the top universities that have added blockchain-related subjects to their syllabus.Massachusetts Institute of TechnologyWhen it comes to research, few come close to the Massachusetts Institute of Technology (MIT). MIT is renowned for its groundbreaking research and competitive academic curriculum and is ranked second only to Harvard University. The institution is, without doubt, the leading university in terms of blockchain technology, taking a research-driven approach to the decentralized ecosystem.The institution boasts of impressive academic staff, with current United States Securities and Exchange Commision Chair Gary Gensler teaching a blockchain course at the university. On-campus, it has one of the oldest Bitcoin (BTC) clubs called the MIT Bitcoin Club, which serves as the epicenter of blockchain discussions at the university.The university famously launched the MIT Digital Currency Experiment back in 2014 and distributed Bitcoin to students in a bid to foster cryptocurrency adoption. The university has gone ahead with its peer-reviewed journal on Blockchain technology to catalog the growing interest of researchers in the field. True to the ethos of decentralization, the journal is distributed freely. Courses offered at the university include: Blockchain Ethics: The Impact and Ethics of Cryptocurrency and Blockchain TechnologyB Digital Frontier: Emerging Blockchain HavensShared Public Ledgers: Cryptocurrencies, Blockchains, and Other MarvelsMIT’s Building 10 and Great Dome. Source: MadcoverboyHarvard UniversityHarvard is one of the oldest universities in the United States and has earned a reputation as part of the most prestigious universities in the world. Founded in 1636, the Ivy League college has churned out a record eight U.S. presidents, fourteen Turing Award winners and multiple Nobel laureates.In line with the principles of excellence and innovation, Harvard has added blockchain education to its curriculum. For starters, the university teamed up with Coursera to provide six free courses on cryptocurrencies that cover the fundamentals all the way to intermediate levels. An online introductory course titled “Breakthrough Innovation with Blockchain Technology” explores the combination of AI and blockchain across several industries.Harvard also offers a thriving blockchain student community with over 200 members. Weekly “Crypto 101” discussions are held and the presence of an incubator on the campus allows students to build and scale their cryptocurrency projects. National University of SingaporeSingapore is one of the leading cryptocurrency hubs in Southeast Asia and the National University of Singapore (NUS) is at the core of the crypto adoption. The university was founded in 1905 and its dedication to original research has consistently put it among the leading universities on the continent.The university’s blockchain offering centers strongly around research and entrepreneurship with interesting essays being published on harnessing blockchain for decentralized computing and improving distributed consensus and smart contracts. NUS offers an in-depth blockchain curriculum that cuts across several fields and levels from beginners to CEOs and mid-level managers.The school boasts of courses at both undergraduate and postgraduate levels with vibrant student-led crypto clubs. Furthermore, these crypto clubs allow students to learn from their peers and publish essays on the use and future of blockchain technologies. Leading courses in the curriculum include: Enterprise Blockchain And DLT for ExecutivesBlockchain, Digital Currencies, And Distributed Ledgers Start From HereUniversity Hall at the National University of Singapore. Source: Joshua Rommel Hayag VargasOxford UniversityOxford University occupies a leading place among world universities and holds the record of being the second-oldest university in operation. The English university ranks as having the largest university press and the largest academic library system that sets it apart from its peers. In terms of blockchain, Oxford is one of the leading centers of learning for the new technology in Europe, thanks to an expansive research center. The blockchain research center has produced a litany of interesting blockchain essays, with the Oxford-Hainan Blockchain Research Institute recording significant strides.Oxford Foundry, the university’s entrepreneurship hub, has struck interesting partnerships with Ripple to facilitate a wider blockchain technology. The university has a vibrant student-run community called the Oxford Blockchain Society that competes favorably with its contemporaries in other institutions. In terms of learning, the university has one of the most comprehensive blockchain learning. Top courses include:Blockchain Software Engineering Blockchain For ManagersOxford Blockchain Strategy ProgramCornell UniversityCornell University was founded in 1865 and has carved a niche for itself as one of the leading research universities in the world. The university is among the top five schools with graduates going on to pursue their PhDs and with an average of over $500 million spent annually on research and development, it’s easy to see why.The university boasts an impressive alumni list that includes 33 Rhodes Scholars, 10 CEOs of Fortune 500 companies and 35 billionaires. Cornell University also offers undergraduate and postgraduate courses focused on blockchain technology. The caliber of the academic staff is impressive and made up of persons like Emin Gun Sirer, with multiple papers presented at blockchain conferences as far back as 2014.Students from the university have secured roles in leading blockchain firms like Coinbase and ConsenSys through the help of the Cornell Blockchain Club. The club is student-run and has gone on to publish interesting papers on blockchain technology and famously hosted its annual conference with an impressive lineup of speakers from the cryptocurrency ecosystem. Courses offered at the university include:Cryptocurrencies and LedgersApplications of Blockchain TechnologyIntroductions to Blockchains, Cryptocurrencies, and Smart Contracts Cryptography EssentialsThe Arts Quad with McGraw Tower at Cornell University. Source: EustressUniversity of California, BerkeleyFounded in 1868, the University of California, Berkeley is a leading institution for blockchain enthusiasts. The university’s diversity is evident in its fourteen colleges and over 350-degree programs that it offers to thousands of students. Research is one of the core reasons why the university makes the list as it has one of the longest streaks of blockchain research. The Berkeley Haas Blockchain Initiative is the main driver of blockchain research and is largely funded by Ripple Labs. Research grants are made available to students to dive deep into the applications of the nascent technology, with particular progress being made in the areas of stablecoins.The university also offers a “Blockchain Fundamentals Professional Certificate Program” through the online education platform edX. In terms of curriculum, the University of California, Berkeley offers students an expansive blockchain offering that includes:Lattices: Algorithms, Complexity, and CryptographyBlockchain, Cryptoeconomics, and the Future of Technology, Business and LawBlockchain Fundamentals

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Kitchen table Bitcoin: How should average investors approach crypto?

Kitchen table Bitcoin: How should average investors approach crypto?

Uverejnil používateľ | mar 29, 2022 |

Cryptocurrencies have come a long way over the last few years, so much so that their market capitalization is now above the $2 trillion mark, and large businesses including Tesla and MicroStrategy have invested billions in Bitcoin (BTC).While institutional investments in crypto assets have been growing over the last few years, discussion on how retail investors should approach cryptocurrency investments has dominated social media. While some advocate for all-or-nothing bets on small-cap altcoins, more conservative approaches include investing only in Bitcoin or gaining exposure via indexes.Younger generations are more prone to investing in cryptocurrency, with surveys showing that 83% of millennial millionaires now own crypto. But, what about those who aren’t millionaires and are making average salaries? Should cryptocurrencies even be considered at all?Cointelegraph reached out to various experts to find out how they believe someone with an average American salary of between $45,000 to $50,000 a year should approach cryptocurrency investing.Paying yourself first Traditional personal finance wisdom suggests that before creating a portfolio, investors should accumulate a few months’ worth of living expenses in cash to prepare for a rainy day. How those funds should be saved varies depending on who’s giving the advice, but one common theme is paying yourself first.Former U.S. President Barack Obama Obama at a Missouri home in 2010. “Kitchen table issues” is an American phrase that refers to taxes, investments, retirement and other everyday concerns. Source: Jewel Samad/AFP/Getty via The New Republic.Speaking to Cointelegraph, Bill Barhydt, CEO of cryptocurrency investment app Abra, echoed this sentiment saying retail investors “should always pay themselves first.” To him, however, paying themselves first “means keeping savings in crypto for the long term, especially Bitcoin and Ether.”Barhydt added he keeps the majority of his wealth in cryptocurrencies “along with some cash in high-yield interest accounts.” During market crashes, he allocates 10% to 25% of his savings to stocks, he said.To Barhydt, cryptocurrency investments should be a part of a retail investor’s portfolio, while he himself questions the “balanced portfolio concept.” He added that “balanced portfolios are for lazy people who don’t do research, understand markets or can’t stomach short-term losses.” Instead, Barhydt believes wealthy investors “know that concentrating investments based on their own convictions and homework, plus the ability to deal with losses, is their key to success.”Speaking to Cointelegraph, Stephen Stonberg, CEO of cryptocurrency exchange Bittrex Global, noted that for retail investors with small amounts to invest or limited access to portfolio strategies, “crypto investments may not make the most sense on a large scale — but that doesn’t mean they shouldn’t invest.”Stonberg said investing in crypto is being equated to investing in the internet in 1993 — ahead of the dot-com bubble — and, as such, the “best approach would be to look at making investments in more established coins such as Bitcoin and Ether” as these have strong use cases and established communities. He added:“Crypto should be a part of a more balanced portfolio and investors should be careful to do their own research. Diversification is a tried and trusted portfolio model and has shown to be defensive against waves of turmoil.”Caleb Silver, editor-in-chief of investing and finance website Investopedia, was more conservative, saying that cryptocurrencies are “highly volatile and speculative investments and should be handled as such.”To Silver, cryptocurrencies “should not be considered elements to balance a portfolio.” Given the performance of “many of the largest cryptocurrencies,” investors could consider limited exposure to the asset class but “should not depend on it to balance their portfolios.”Thomas Perfumo, head of business operations and strategy at cryptocurrency exchange Kraken, told Cointelegraph the exchange “cannot provide recommendations on what people should do with their money” but showed excitement over “the ability to earn rewards through staking.”As to how much should be allocated to a portfolio, most experts responded, “it depends,” with any actual figures always being below 10% of a portfolio.Crypto, funds or indexes?In early 2021, strategists at Wall Street banking giant JPMorgan suggested a 1% portfolio allocation to BTC could serve as a hedge against fluctuations in traditional asset classes such as stocks, bonds, and commodities. In January 2022, billionaire Ray Dalio recommended a 1–2% allocation for the flagship cryptocurrency as an inflation hedge.Speaking to Cointelegraph, Bittrex Global’s Stonberg advanced that a relatively “safe” allocation would be at 5%, enough to be considered low-risk while also allowing for “marginal return.” Silver echoed Stonberg’s figure, adding that investors should allocate the 5% with “complete awareness that they could lose it all quickly.”Silver said that cryptocurrency index funds, futures exchange-traded funds (ETFs) or other diversified investments could be less risky while also producing “far less upside than individual tokens.” He added an alternative would be companies and ETFs around the blockchain space.Stonberg, on the other hand, pointed out the “most economical choice is to purchase cryptocurrencies directly rather than hold an index,” as there is no reason to cover an index’s custody and marketing costs if investors can just pick cryptocurrencies directly.One-year Bitcoin price chart. Source: Cointelegraph.Johnny Lyu, CEO of cryptocurrency exchange KuCoin, did not specify any type of allocation. He, instead, noted that specific recommendations depend on several factors including investors’ financial and technical literacy, their goals, strategies and risk appetite.To Lyu, more crypto-savvy investors should allocate more to crypto than those who are just curious about the space. He added:“No matter how much you invest in crypto, it gives you some advantages in terms of personal, financial and career advancement if you just understand how digital money works.”Lyu also said that a golden rule for any investment is diversification. An ideal crypto portfolio consists of “coins of different categories such as top crypto assets, stablecoins, nonfungible tokens, decentralized finance instruments etc.” Such a portfolio, he said, should be part of a larger one with non-crypto assets.Investing only what investors can afford to lose is a typical disclaimer in the space, but what if investors aren’t able to stomach the losses that may come? In 2017, BTC rallied to a high near $20,000 before plunging. By late 2018, it was trading at little over $3,000, having shaken off thousands of investors.Crypto investing boils down to risk toleranceThose with the stomach to stick to their strategy likely benefited, as in late 2021 when Bitcoin hit a new high near $69,000. Those who didn’t, watched the rollercoaster unfold in disbelief. Stonberg offered a solution to the problem:“A good way to approach crypto is to first determine your risk tolerance: The amount of investment capital you have to work with and your ideal amount of exposure while factoring risk.”Even if some investors put in their hard-earned money while understanding that their investment may lose all of its value, it’s clear that cryptocurrencies and their innovations are here to stay. So much so that BTC is now being compared to a digital version of gold.Stonberg concluded by saying he is “convinced that crypto investing will become a regular point of conversation for a family in the next year or two” as cryptocurrencies become mainstream. Silver agreed, saying that the crypto space is “where finance, investing and payments are moving. The more we talk and learn about these themes, the smarter we will be as consumers and investors.”Barhydt suggested that cryptocurrency investments should be a secondary investment discussion to be had, with the first one being “how are families going to guarantee that they can pay themselves first.”At the end of the day, it’s important first to analyze the purpose of cryptocurrency investments. If investors are picking up BTC because of its resistance to censorship, they can easily stomach short-term price fluctuations. If their goal is to retire early and live on an island, bear markets may become a nightmare regardless of the chosen investment vehicle.The views and opinions expressed here do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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