What is the recommended allocation for Bitcoin in a diversified portfolio?

Determining the ideal Bitcoin allocation in your portfolio depends on your personal factors. Consider your risk tolerance, your investment goals, and your time horizon. At StashAway, we suggest a maximum allocation of 5% of your net worth to Bitcoin. This aligns with research indicating that exceeding this threshold can significantly increase the volatility of a balanced portfolio. If you're new to Bitcoin, it's wise to start with a smaller allocation and gradually increase it as you become more comfortable with its volatility.