Crypto can be part of portfolio, but only in small measure: Sanjay Kathuria

Sanjay Kathuria, Founder of Profits First, said investors should treat crypto as a long-term play rather than a way to make quick money. “Anytime is a great time to start investing in an asset class if you are looking at a long-term horizon,” he said, cautioning that people should avoid crypto if they are chasing “get rich quick” gains.

Kathuria compared crypto with gold, saying that limited supply supports value over time. He pointed out that central banks and large funds have been accumulating Bitcoin, which signals growing institutional interest.

Also Read | How to balance risk and returns in crypto investing

On portfolio allocation, he advised limiting exposure. “This crypto asset class is like gulab jamun on your thali… You can have one or two, but you can’t have the complete thali,” he explained, suggesting 5-10% of investments could go into crypto to boost overall returns.

Kathuria recommended sticking to the top five coins for passive investors, while avoiding memecoins. He also noted that wider adoption will determine the long-term value of crypto. “If adoption goes up, then obviously the value of that asset class has to go up,” he said, adding that regulatory clarity may come in the next 12-18 months.

For the full interview, watch the accompanying video

Catch all the latest updates from the stock market here