Despite being a highly volatile asset, Dan Schatt and Domenic Carosa—the co-founders of DeFi startup Earnity—believe cryptocurrency can help investors build wealth if they invest in digital coins over time. It’s a portfolio play that has gained traction in recent months and is catching up to stock trading as a source of wealth growth for Americans.

As part of a more extensive financial portfolio and strategy

To be sure, investing in crypto should come second to having a solid financial plan that includes emergency savings and solid retirement planning. However, once that is in place, it may make sense for investors to consider crypto as a critical component of their long-term portfolio.

Because of the volatile nature of cryptocurrency, financial experts generally recommend it for tech-savvy investors committed to learning about the asset and have plenty of time to ride the ups and downs. Some of the same rules in the stock market apply, such as not making emotional decisions or selling on a downswing.


Financial experts generally advise only putting money into cryptocurrencies that you can afford to lose. In other words, it shouldn’t be your entire nest egg.

A safe rule of thumb is to invest 5% of your portfolio in a high-risk asset such as bitcoin — or other coins. However, it may make sense to invest even more in cryptocurrency for some investors.

Earnity’s Dan Schatt and Domenic Carosa want the same level of security you have with crypto as stocks. Such as dollar-cost averaging. For example, it is best to regularly put in small amounts of money rather than once, mitigating price volatility.

Attempt to attract younger, more diverse investors

Another advantage of cryptocurrency is that it appeals to a broader range of investors, including women, people of color, and those who earn less, who have traditionally struggled to build long-term wealth.