About half of current cryptocurrency investors have experienced “notable losses,” according to a recent survey of financial advisors. Until recently, advisors haven’t generally recommended crypto investments like bitcoin and ethereum. However, major firms, including Bank of America, are now encouraging clients to invest up to 4% in crypto.

Financial advisors and firms have historically avoided cryptocurrencies as investments, but the tide is turning. Changing regulatory and political climates, along with regulatory approval of bitcoin and ethereum ETFs, have shifted attitudes. Bitcoin has experienced significant value fluctuations, with major losses in past “bitcoin winters.”

Despite significant volatility, bitcoin and other cryptocurrencies have seen huge long-term gains in value, driving increased attention from the investment community. However, recent declines have raised concerns, highlighting the speculative nature of crypto investing. Morningstar recommends only small allocations for risk-aware clients due to the high-risk nature of cryptocurrencies.

The key word for crypto investing is “speculative.” Investors should be prepared for large swings in performance and be willing to hold on through significant declines. While many firms are cautiously recommending small allocations to cryptocurrencies, the risk remains high. It’s essential for investors to understand the speculative nature of these investments.

Read more at Yahoo Finance: ‘Be willing to hold on’