Savings and Investments: Why Include Cryptocurrencies in Your Portfolio

Savings and investment are topics often overlooked by many. Between lack of knowledge, misconceptions, and apparent complexity, many people give up on optimizing their financial wealth. Yet understanding the basics allows you to take control of your economic future.

In this comprehensive guide, we’ll clarify essential concepts — wealth, savings, investment — and explain why cryptocurrencies deserve a place in a diversified wealth strategy.

Understanding Savings: The Foundation of Your Financial Security

Wealth, Savings, and Investment: The Definitions

Wealth represents all your assets and holdings: real estate, savings, investments, and anything with monetary value.

Savings refers to the portion of your income set aside each month, rather than spent immediately. It divides into two categories:

• Emergency savings: a safety net immediately available for unexpected situations (savings accounts). Recommended target: 3-6 months’ salary.
• Investment savings: more profitable long-term investments, with some risk and sometimes reduced liquidity.

The Impossible Triptych of Finance

Before investing, it’s crucial to understand a fundamental rule: no financial product can simultaneously offer high returns, total security, and perfect liquidity. This is the “impossible triptych.”

A savings account offers security and liquidity, but low returns. Real estate offers security and returns, but limited liquidity. Cryptocurrencies offer returns and liquidity, but with capital loss risk.

Beware of anyone promising all three at once — it’s probably a scam.

The Savings and Investment Pyramid

A sound wealth strategy is built like a pyramid, from bottom to top:

1. Base: Emergency fund — Savings accounts. 3-6 months’ salary, immediately available.
2. Level 2: Bonds & Fixed income — Capital preservation, moderate returns (2-4%).
3. Level 3: Real estate — Primary residence, REITs. Stability and rental income.
4. Level 4: Stocks and ETFs — Long-term growth, moderate volatility.
5. Summit: Crypto assets — High potential, high risk. Maximum 1-10% of wealth.

Golden rule: only move to the next level when the lower level is secured. Never invest in crypto with money you might need.

Why Include Cryptocurrencies in Your Portfolio?

Diversification According to Markowitz

The phrase “don’t put all your eggs in one basket” isn’t just a popular saying — it’s a fundamental principle of modern finance, formalized by economist Harry Markowitz with Modern Portfolio Theory.

This theory demonstrates that by combining assets whose prices move differently (uncorrelated assets), you can reduce overall risk while maintaining return potential. Cryptocurrencies, whose behavior differs from traditional stocks and bonds, constitute a relevant diversification building block.

The Return Potential of Digital Assets

Blockchain technologies and their applications are developing across many sectors: finance, logistics, legal services, healthcare… This innovation attracts investors and capital.

Bitcoin, with its supply limited to 21 million units, is the best-performing asset since its creation in 2009. Some see it as “digital gold” capable of protecting against monetary inflation.

It’s unwise to invest exclusively in Bitcoin, but it would be even more regrettable not to hold any at all.

The 3 Fibo Categories: Matching Risk to Your Profile

Fibo has developed a unique segmentation of the digital asset market into three categories, allowing you to adapt your risk exposure:

1. Stable Assets (low risk)

Stablecoins (USDC, USDT, EURC) track the price of a currency like the dollar or euro. They reduce portfolio volatility while potentially generating yield through lending protocols.

2. Essential Assets (moderate risk)

Bitcoin and Ethereum are the pillars of the crypto market, with solid track records and growing institutional adoption. Volatile but with demonstrated long-term growth potential.

3. Opportunity Assets (high risk)

Emerging projects, new tokens, DeFi protocols… These assets offer exceptional return potential but with significant loss risk. Reserved for experienced investors.

Defining Your Investor Profile

Your investment choices should be personalized according to several criteria:

• Your age: The younger you are, the longer your investment horizon, allowing you to accept more volatility. A young profile could devote 5-15% of their wealth to crypto, while a conservative profile would limit it to 1-5%.
• Your financial situation: Stable income allows better investment planning and regular investing (DCA method).
• Your goals: Home purchase in 5 years? Retirement in 30 years? Different horizons call for different strategies.

The DCA Method: Investing Serenely

DCA (Dollar Cost Averaging) involves investing a fixed amount at regular intervals, regardless of market price. This approach:

• Smooths out average purchase cost
• Eliminates stress about the “right time” to invest
• Transforms investing into a regular habit

With Fibo, you can schedule automatic purchases to implement your DCA strategy effortlessly.

Addressing Common Concerns

“Crypto is too volatile”

That’s true — but it’s precisely this volatility that generates return potential. Stablecoins help reduce this volatility while staying in the ecosystem. And over the long term, volatile investments are generally more rewarding.

Tip: if your investments keep you up at night, reduce the amounts. Your mental health comes first.

“Crypto platforms aren’t reliable (cf. FTX)”

Fibo is a French company, registered as a DASP (Digital Asset Service Provider) with the AMF. We use Fireblocks’ MPC technology, the global leader in crypto security.

“I don’t know anything about it and it scares me”

That’s normal! At Fibo, we’ve designed a simple and educational experience: clear explanations, ergonomic mobile app, personalized support. You don’t need to be an expert to get started.