Top 4 Reasons More Americans Are Investing in Crypto, According to Schwab
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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More Americans are embracing cryptocurrency as a part of their investment strategy. According to Schwab’s 2025 Modern Wealth Survey, 41% now view crypto as a good investment — and 65% of current holders plan to increase their allocations.
What’s driving this surge in optimism? Here are the top four reasons investors are turning to crypto.
1. Long-Term Growth Potential
The top reason Americans are investing in crypto is its “strong long-term growth potential,” with 53% of survey respondents stating that this is why they own cryptocurrency or are interested in owning it.
“Blockchain technology — the foundation of cryptocurrencies — continues to evolve, and some investors view this as a transformative force that could reshape areas of finance, supply chain and digital ownership,” said Jim Ferraioli, director and cryptocurrency strategist at the Schwab Center for Financial Research.
However, he emphasized that long-term growth is not guaranteed.
“Long-term investors should remain diversified across traditional asset classes while acknowledging that crypto’s path will likely be uneven,” Ferraioli said. “The focus should stay on maintaining a disciplined plan, not speculating on near-term price movements.”
2. Diversification
Roughly half of Americans (48%) said they want to invest in crypto to diversify their investment portfolios.
“For investors who already hold a balanced portfolio, a small crypto allocation can offer diversification benefits, as digital assets sometimes behave differently than stocks or bonds,” Ferraioli said. “However, correlation patterns change, and crypto’s volatility can amplify overall risk rather than reduce it.”
Ideally, each asset class in a diversified portfolio plays a clear and deliberate role.
“Before adding crypto, it’s important to understand how it fits into your overall plan,” Ferraioli said.
3. An Interest in Blockchain
Forty-two percent of survey respondents own cryptocurrency or want to own it because they are interested in blockchain technology.
“Blockchain technology is central to the appeal of cryptocurrencies,” Ferraioli said. “It offers transparency, security and the ability to transact without intermediaries. Many investors are intrigued not just by the potential of crypto itself, but by the broader promise of blockchain applications, such as faster settlements or new forms of asset ownership.”
However, the use of blockchain in and of itself does not make crypto a wise investment for everyone.
4. Downside Protection
Just over one-third (35%) of Americans view crypto investing as a way to protect themselves from the effects of inflation and economic uncertainty.
“Crypto should not be viewed as a reliable hedge or form of downside protection,” Ferraioli said. “Over a multi-year period, cryptocurrencies show little correlation to other asset classes; however, prices have often moved in tandem with high-risk assets, especially during market volatility.”
Cryptocurrencies have an inverse relationship with traditional measures of risk, such as credit spreads, which reinforces that this is a risk-on asset class.
“Traditional diversifiers such as bonds, cash equivalents or certain alternatives remain more dependable tools for managing downside risk,” Ferraioli said.
When Crypto May Not Be the Right Fit
While many investors are optimistic about cryptocurrency, it’s not a suitable investment for everyone.
“Crypto may not be a good fit for investors who are risk-averse, have short-term financial goals, or lack the time or interest to follow a fast-evolving market,” Ferraioli said.
Digital assets are highly volatile and speculative, with values that can swing dramatically. That’s why it’s essential to understand your financial goals, risk tolerance and experience level before investing.
“If you have a well-constructed plan that already covers your core investing needs and you’re comfortable with the added volatility, allocating a modest portion of your portfolio to crypto may make sense,” Ferraioli said. “However, crypto should never replace traditional investments like stocks, bonds or cash.”
Ultimately, crypto should be part of a long-term strategy, not a shortcut to quick returns. Investors should approach it with discipline, research and a clear plan.
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