SoFi Blog

Finance is changing. Digital assets are moving into the mainstream, reshaping how we think about money, and bringing their features – speed, lower costs, and greater independence – to anyone with an internet connection.

Digital assets can operate outside traditional systems, giving users more direct control over their money – and by extension, their overall financial portfolio.

What Sets Crypto Apart

To think about how digital assets may fit with your broader financial goals, let’s consider what sets them apart.

•  Cryptocurrency exists entirely online and generally operates independently of a central bank or government. This can theoretically insulate it from monetary policy, interest rate changes, and inflation that affect the value of traditional currencies like the U.S. dollar.

•  The crypto market is highly speculative, largely unregulated and extremely volatile. Crypto prices are driven mainly by supply, demand, and investor sentiment, while stock prices tend to reflect company earnings, the economy, and business fundamentals. Digital assets also trade 24/7, while the New York Stock Exchange is open only six and a half hours on weekdays.

•  Crypto prices have historically shown relatively low correlation with traditional financial markets such as stocks (meaning they don’t tend to move in lockstep with the stock market), though the link has strengthened as crypto has moved further into the mainstream.

How to Think About Your Finances, Crypto and Stablecoin

Diversification is already a key investing principle: In short, it means avoiding putting all your eggs in one basket. The same idea applies when deciding whether crypto or stablecoins belong in your financial life. Rather than thinking of crypto as “all or nothing,” the real question is how much, if any, exposure makes sense for your goals and risk tolerance.

Your financial portfolio includes everything you own: Your checking and savings accounts, cash, credit cards, retirement savings, and investment accounts as well as physical assets like your car and home. If you add crypto, it becomes one more bucket.

But crypto comes with specific risks and considerations: Regulations are still evolving, much of the market remains unregulated, and price swings can be extreme. In October 2025, for example, Bitcoin, the most prominent digital currency, fell about 7% in a single day as markets reacted to news about tariffs and a government shutdown. (The S&P 500 declined far less – 2.7%.) The sharp drop triggered forced liquidations of leveraged trades, wiping out $20 billion in value.

For newcomers, this level of volatility means one thing: Start by deciding how much risk you’re willing to take, and limit your initial allocation to an amount that won’t derail your broader financial plan. Crypto may be more suitable for those who can afford to lose the allocated money in its entirety.

The high degree of volatility has also given rise to stablecoins – digital currencies pegged to traditional currencies like the U.S. dollar. Their potential for stability makes them useful for digital payments, cross-border transfers, and potential protection against local currency inflation or banking limits. For international payments and remittances, stablecoins may reduce costs and accelerate transfers. And for people in high-inflation economies, a stablecoin linked to a stronger currency may offer an alternative to local banking systems.

For U.S.-based consumers, the actionable takeaway is simpler: Stablecoins can provide a less volatile way to explore digital assets or to move money more efficiently. But they’re still part of the broader crypto ecosystem and should fit into your strategy – not replace it.

Getting Started

Getting started with digital assets can feel overwhelming, but a few rules of thumb can help:

•  Start small – you can always add to your allocation over time or set up regular purchases.

•  Research each asset carefully, considering reputation, real-world use cases, market performance, and supply.

•  Know your risk tolerance – market volatility can be a challenge for even the most seasoned investor.

•  Use a regulated, reputable platform to buy and sell. (SoFi is the only national chartered bank where retail customers can buy, sell, and hold over 25 cryptocurrencies.)

•  And always remember, the value of digital assets is not guaranteed, and they are not insured by the Federal Deposit Insurance Corporation, meaning your crypto is not protected from losses.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

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