Bitcoin has gone over $100,000 this year, and some analysts are predicting even bigger gains next year. With this, many financial advisors are recommending at least some caution, while investing in cryptocurrencies and making sure only a small portion of your overall portfolio is being used for investment. Bitcoin prices have fallen, but have recovered quickly after the Federal Reserve signaled it might cut rates less frequently next year, but they have more than doubled. Asset manager Blackrock recommends a 1-2% allocation to bitcoin in a portfolio that otherwise consists of a traditional stock/bond allocation due to bitcoin’s volatility. Experts like Malcolm Ethridge and David Rosenstrock weigh in on the risks and rewards of investing in bitcoin, emphasizing that it’s important to know why you want to invest. Buying bitcoin directly, investing in an ETF, or buying shares in companies that trade bitcoin each involve a number of different considerations. New investors should consider ETFs as a beginner-friendly option, but experienced investors like Douglas Boneparth prefer to hold bitcoin directly, for more control and security.