Before I Buy Crypto, I Tell Myself This

This is my crypto-buying mantra. What's yours?

As someone who's been investing in stocks for over a decade, I'm no stranger to taking on some risk in my portfolio. Stock values can swing wildly, and market crashes are something any investor needs to gear up for.

But as risky as stocks are, I consider cryptocurrency to be way riskier. For one thing, crypto hasn't been around nearly as long. While Bitcoin came into play a little over a decade ago, there are stocks that have been around for more than a century. As such, it's hard to know if crypto is viable as a long-term investment. And it's hard for me to get comfortable with the idea of owning it.

Now I don't happen to own a lot of crypto. Right now, less than 1% of my total portfolio is invested in digital currencies. I do intend to ramp up on the crypto front. But as I do, I'll keep telling myself this one thing.

Prepare to lose money

Whenever I buy stocks, there's a part of me that acknowledges that I might take temporary losses in my portfolio as the value of those investments fluctuates. But ultimately, I approach my stock investments from a place of positivity and hope that over time, they'll end up making me money.

With crypto, I admittedly have a much more negative view. Because crypto hasn't been around that long and still falls outside my comfort zone, I have to tell myself that there's a good chance my entire digital currency investments will one day be worth nothing. Once I accept that, I can move forward with a crypto purchase.

Now you might wonder why I'd subject myself to buying crypto in the first place if I'm really so uneasy about it. And the answer boils down to FOMO.

I know a lot of people who have had great success with crypto. And some investors with tons of knowledge -- experts I respect a lot -- are advocates of it.

As such, I feel compelled to invest a small portion of my assets into crypto. I also acknowledge that it's a viable way to branch out within my portfolio. And diversifying is something every investor should do.

At the same time, I have to come to terms with the idea of losing money with crypto. Once I do, I can actually breathe more easily.

Is crypto right for you?

Clearly, I have some mixed feelings about crypto, and I have no plans to load up on it heavily. Rather, I figure I'll buy it on occasion when extra money comes my way to invest and I'm feeling bold.

If the idea of owning crypto doesn't sit well with you, then there's really no need to put money into it. There are plenty of other investments you can do quite well with over time.

On my end, I guess there's a small part of me that doesn't think I'll really lose money with crypto. Otherwise, I wouldn't buy it, because that would be throwing my money away. At the same time, if I set my expectations very low, I won't be disappointed if my crypto investments don't work out in my favor.