Start by deciding how much of your money can go into crypto, and only use money you can afford to lose entirely. Coin Bureau's beginner guide (updated March 31, 2026) says to choose a share of your overall portfolio and "stay inside that line." A Diamond Pigs guide (May 11, 2026) gives a figure: 1 to 5% of total investable assets. After that, both guides suggest a regular buying routine and keeping most of it in Bitcoin and Ethereum. Then come safe storage and tax records. In the US, the IRS now receives broker reports with cost basis for many sales made from January 1, 2026.
Step 1: Set the cap before you pick a coin
Coin Bureau tells beginners to decide "what share of your overall portfolio you are comfortable putting into crypto." It does not give a percentage. It says the split "will vary from person to person."
Diamond Pigs gives a range: "The most widely cited guidance from financial advisers is to keep crypto to between 1 and 5% of your total investable assets." The article names no adviser, study or survey behind that wording, so treat the range as the publisher's own summary. Diamond Pigs also sells automated investment strategies, so its guide is partly promotional. Its main rule is "never invest money you cannot afford to lose entirely."
The range is simple arithmetic on your own figure:
| Total investable assets | 1% | 5% |
|---|---|---|
| 10,000 | 100 | 500 |
| 50,000 | 500 | 2,500 |
Neither guide says which point in the range, if any, suits a particular person.
What not to fund with crypto
Coin Bureau says crypto "is usually a poor fit for people saving for short-term goals" and "is not a sensible place for emergency funds." Money you need within a set time, or for emergencies, belongs outside your cap.
Step 2: Choose a buying routine, and know its limits
Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals, whatever the price. FINRA defines it as investing "in equal portions, at regular intervals, regardless of current market conditions."
The sources disagree on how much DCA helps:
- Diamond Pigs calls it "the simplest and most proven automated approach." It says that over several years DCA "smooths out the impact of volatility and removes the impossible task of timing the market."
- Coin Bureau is more cautious. It says DCA "does not guarantee better returns, and it does not make losses disappear."
- FINRA says the approach "can help you limit your losses in the event of significant market declines." It does not promise a profit.
In practice, DCA changes when your money goes in. It does not change how much of your money is at risk once it is in. Your cap from Step 1 is still what limits your downside.
Step 3: Keep the core simple
Coin Bureau advises keeping "the bulk of your crypto exposure in Bitcoin and Ethereum" and treating "anything beyond that as optional." It warns that meme coins "can move fast and grab attention, but that is not the same thing as having a durable investment case."
The large coins are still volatile
Coin Bureau calls volatility "the headline risk for a reason." Bitcoin and Ethereum are more established than smaller tokens, but the guide says they can still swing hard over short periods. Choosing the biggest coins lowers some risks, such as a project disappearing. It does not remove price risk.
Diamond Pigs' 1% to 5% range on your own amount
Enter your total investable assets and a share from 1% to 5% to see the amount that share represents.
| Your total investable assets | Share in crypto (Diamond Pigs range) | Amount that share represents |
|---|---|---|
| 10,000 your currency | 1 % | 100 your currency |
| 10,000 your currency | 5 % | 500 your currency |
| 50,000 your currency | 1 % | 500 your currency |
| 50,000 your currency | 5 % | 2,500 your currency |
- The total investable assets figure is your own assumption.
- The 1% to 5% range is Diamond Pigs' stated guidance, not a recommendation for any individual.
This applies one publisher's stated range as arithmetic and cannot tell you which share, if any, suits your finances.
Step 4: Protect access to your coins
Coin Bureau says hardware wallets "keep your private keys offline," which leaves attackers fewer ways in than browser or mobile wallets. For the trade-offs, see how a cold wallet compares with a hot wallet.
Scams are the bigger threat for most beginners
The FBI's 2025 IC3 Annual Report says cryptocurrency investment fraud was the highest source of financial losses to Americans in 2025, with $7.2 billion in reported losses. The US Federal Trade Commission lists these warning signs:
- "Only scammers demand payment in cryptocurrency."
- "Only scammers will guarantee profits or big returns."
- "Never mix online dating and investment advice."
- "Cryptocurrency payments typically are not reversible," and they "do not come with legal protections" in the way credit card payments do.
The FBI tells victims to stop sending money and to file a report at ic3.gov, with transaction hashes and wallet addresses where they have them.
Step 5: Keep tax records from your first purchase
Coin Bureau says crypto "can trigger tax obligations when you sell it, swap it, or spend it" in many jurisdictions. US rules, according to the IRS:
- Taxable: selling a digital asset for dollars or other currency, exchanging one digital asset for another, trading it for property, goods or services, and receiving it as payment or as a reward.
- Generally not a taxable sale: buying with dollars, or moving assets between wallets you control. Paying a transfer fee in digital assets is an exception.
- Form 1040 asks every filer a yes-or-no question about digital asset activity during the year.
- Form 1099-DA: brokers must report gross proceeds for transactions on or after January 1, 2025. They must report cost basis for certain transactions on or after January 1, 2026.
Rules elsewhere differ, so check your own tax authority. Wherever you live, keep a record of every buy, sell, swap and spend, with dates and amounts.
What the sources agree on
- Limit your crypto exposure in advance, and only use money you can lose entirely.
- Keep short-term savings and emergency funds out of crypto.
- A buying schedule does not remove losses.
- No guide offers a price forecast, and neither do we.
Once you have a cap, the next question is how to split it. See how to size and diversify a crypto portfolio.
Limitations: this article draws on two publishers' beginner guides, US regulators' rules and data, and no personal circumstances; it is not investment, tax or legal advice.
