What to consider before making crypto part of your financial plan

Cryptoassets may not be regulated financial products, so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.

Crypto is slowly becoming more mainstream, but it remains a high-risk investment. While you might view cryptoassets as outside of your regular financial plan, considering them alongside other assets and decisions could be beneficial.

According to an Aviva survey (26 August 2025), around 1 in 5 people have already invested some money in crypto. What’s more, 27% are considering doing so as part of their retirement plan. Yet, many also had concerns, including value volatility, losing out on pension benefits, and the lack of regulation.

If you invest in crypto, you should consider making it part of your financial plan

As it’s relatively new and uncommon compared to other assets, it’s easy to see crypto as something separate from your wider financial plan.

However, simply buying crypto without considering other aspects of your finances could mean you make a decision that’s not right for you. By reviewing how crypto would align with your financial circumstances, goals, and attitude to investment risk, you can understand if it’s suitable and if other areas of your plan would benefit from adjustments if you decide to invest.

These questions could offer a good starting point to consider how crypto might form part of your long-term financial plan before meeting with your financial planner. 

Why are you interested in crypto investments?

Understanding why you want to invest in crypto could help assess whether it’s right for you. Are you attracted by the headlines that suggests you could potentially receive high returns? Or are you looking for a way to diversify your investment portfolio?

You should also consider what your overall investment goals and time frame are, and whether crypto would support them.

Are you comfortable with the level of risk presented by cryptoassets?

Cryptoassets are high risk, and the value of your assets could rise as well as fall. You may not get back all the money you invest, so it’s important to consider your capacity for financial loss.

An investment losing money is frustrating, but if doing so could place your long-term financial security at risk, it may be wise to avoid investing.

You should note that cryptoassets are highly volatile, with their values regularly moving sharply. So, it’s useful to consider your emotional tolerance for market movements: how likely are you to make knee-jerk decisions during a period of volatility?

How much money do you want to invest in crypto?

Your investment strategy will usually involve investing in a range of assets, sectors, and geographical locations. This is known as “diversifying” and aims to reduce the volatility of your portfolio, as losses in one area could be offset by gains in another.

So, setting out how much you’d like to invest in cryptoassets could help you see how it might fit into your overall portfolio. Would adding cryptoassets create an imbalance or mean you’re taking too much investment risk overall?

What are the tax implications of investing in crypto?

Finally, transactions involving cryptoassets may have tax implications. Depending on your circumstances, the gains you make on cryptoassets could be liable to Capital Gains Tax and income from these assets may also be subject to Income Tax.

As a result, it’s important to consider the tax implications of a decision to invest. You could find that changing your current financial plan to invest in crypto means your tax liability could increase.

We could help you assess how crypto might fit into your financial plan

If you’re interested in investing in crypto, please contact us. We could help you understand whether it is appropriate for your circumstances, goals, and wider financial plan.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax planning.