As 2025 progresses, Bitcoin and Ethereum continue to dominate the market, holding the majority of crypto capital and global interest.
But should you only invest in Bitcoin and Ethereum in 2025, or should you diversify your portfolio more?
📢 Disclaimer: This content is for educational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
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What It Means to Invest Exclusively in BTC and ETH Today
As of mid-2025, Bitcoin (BTC) and Ethereum (ETH) remain the dominant cryptocurrencies in the market, holding the most value.
Did You Know ❓
Bitcoin and Ethereum control a significant portion of the total market capitalization.
BTC: Around 64% of the market. Approximately $1.7 trillion in market cap.
ETH: Around 8.8% of the market. Approximately $319 billion in market cap.
Why These Two Assets Hold Most of the Crypto Capital
Bitcoin
- Often called “digital gold,” Bitcoin’s large appeal comes from its limited supply and decentralization
- It has a cap of 21 million coins
- No central governing body
- Recent institutional adoption
- Approval of Bitcoin ETFs in 2024
Ethereum
- Ethereum’s strength comes from its smart contract functionality, creating decentralized applications (dApps) and decentralized finance (DeFi) platforms
- Holds over 53% of the total value locked in DeFi
- Ongoing upgrades, such as the “Pectra” update, are enhancing scalability and efficiency
- Unlimited use cases are possible within its blockchain
If you exclusively invest in BTC and ETH, you are buying into the most established cryptocurrencies.
In traditional finance, these would be considered the “blue chips” of crypto.
While buying Bitcoin and Ethereum is a great idea, there are alternative cryptocurrencies and crypto investments to help you diversify within the market.
Risks of Limiting Your Portfolio to Just Bitcoin and Ethereum
While Bitcoin and Ethereum are two of the best cryptocurrencies to buy and hold, only focusing on them doesn’t eliminate risk.
Here are some factors to take into consideration when buying BTC, ETH, and any other crypto.
Volatility
BTC and ETH are still highly volatile.
Historically, their price swings can be immense and scare any investor.
Macroeconomic Risks
High Inflation➡️Central banks might raise interest rates to control prices. This makes investors sell risky assets like crypto to hold what they think are “safer” investments.
Government Regulations➡️New laws or actions (like SEC lawsuits, bans on staking, or higher taxes) usually mean that crypto prices drop quickly.
Global Conflicts➡️Wars, sanctions, or political tensions can make investors more nervous.
Concentration of Crypto Assets
Concentration risk means your portfolio is dependent on the success of just one or two assets, like BTC and ETH.
If something unexpected affects either Bitcoin or Ethereum, your entire investment could be at risk.
Crypto Alternatives: ETFs and Index Funds for Easy Diversification
If you want exposure to other cryptocurrencies but don’t feel comfortable picking individual altcoins, crypto ETFs and index funds are great options.
These products bundle multiple cryptocurrencies into one investment.
It allows it to grow within the whole crypto sector while still limiting big risk by buying individual tokens that might fail.
Crypto ETFs usually focus on one or a few specific cryptocurrencies.
For example, an Ethereum ETF gives you exposure only to Ethereum, while a Bitcoin ETF focuses just on BTC.
Crypto index funds give broader exposure to a mix of cryptocurrencies.
They include a “basket” of top-performing assets like Bitcoin, Ethereum, Solana, Avalanche, and Polygon.
This crypto investing method allows you to spread risk across multiple projects without having to pick individual coins/tokens.
What Are the Advantages of Focusing Only on BTC and ETH?
Exclusively investing in Bitcoin and Ethereum does offer certain advantages as well, especially when it comes to long-term HODLing.
Institutional Trust
The amount of major financial institutions buying into BTC and ETH can’t be ignored.
According to a 2025 survey about institutional investors within digital assets, 59% of institutional investors plan to allocate over 5% of their assets under management to cryptocurrencies, with their main focus on BTC and ETH.
Another new announcement also has indicated that Trump Media (which President Donald Trump holds top shares in) is allocating over $2.5 billion to buy BTC.
@cbsmornings Trump Media and Technology Group on Tuesday said it’s struck a deal to raise $2.5 billion that will be tapped to buy Bitcoin, creating a reserve of the cryptocurrency. President Trump is the largest shareholder in Trump Media. #trump #crypto ♬ original sound – CBS Mornings
Global Adoption
From government agencies to online shops, the world has caught on to the value of crypto and how to utilize it.
The largest benefit of holding Bitcoin or Ethereum is that you can use it globally, without its value changing.
1 BTC = 1 BTC everywhere and anywhere.
Long-Term Performance
Historically, BTC and ETH have outperformed many other cryptocurrencies.
Since 2011, Bitcoin has had an average annualized return of about 143%.
Ethereum, which launched in 2015, has also shown impressive returns, with a compound annual growth rate (CAGR) of 24% over the past seven years.
No other cryptocurrency can compare to the growth and return value of BTC and ETH.
Secure Your Crypto with Material Bitcoin & Material Ether
Investing is only one part of the journey; protecting your crypto is just as important.
Material Bitcoin and Material Ether offer air-gapped, tamper-proof cold storage for true long-term security.
How Do They Compare to the Rest of the Crypto Market?
While Bitcoin and Ethereum are the core holdings for most investors, many are diversifying into newer projects in 2025.
Other coins like Solana, Cardano, and newer AI projects are good options if you want exposure to emerging technologies.
Keep in mind, these might come with a higher risk.
Still, whether you stick to BTC and ETH or explore newer projects, your crypto investing strategy should always align with your personal risk tolerance and long-term goals.
Factors to Guide Your Crypto Investment Strategy
1️⃣ Risk Tolerance and Time Horizon
Before investing, it’s important to know how much risk you’re comfortable taking and how long you plan to hold your crypto investment.
If you want lower risk and plan to invest for many years, focusing on BTC and ETH might make more sense.
However, if you’re willing to take on more risk for the chance of higher returns, you might include some smaller, newer projects.
2️⃣ Diversification vs. Concentration
Most experts recommend some level of diversification to reduce the chance of big losses if one coin performs badly.
Even with crypto, spreading your investment across a few strong assets can balance your safety and growth potential.
However, too much diversification into risky altcoins can also increase the chance of losses.
Is Investing Only in Bitcoin and Ethereum a Smart Move?
For most, focusing on Bitcoin and Ethereum is a solid strategy in 2025.
They are strong, institutionally backed, and have proven long-term performance.
While adding a few smaller projects can increase your growth potential, it also introduces more risk and relies on your time dedication and knowledge to track the market.
So, should you only invest in Bitcoin and Ethereum in 2025?
The answer is up to you and your comfort level.
But what you can’t question is protecting your crypto.
For long-term holders of BTC and ETH, using a reliable cold storage solution like Material Wallets guarantees that your assets stay safe, offline, and fully under your control.
FAQs
Is it safe to only invest in Bitcoin and Ethereum?
- It’s generally safer than investing in smaller altcoins, but both BTC and ETH are still volatile. Diversifying within crypto or combining it with other assets (ETFs and index funds) can help reduce risk.
Can Bitcoin or Ethereum still grow in 2025?
- Yes. Institutional adoption, ETF approvals, and global use cases continue to support its long-term growth.
Is a cold wallet necessary for BTC and ETH?
- Yes, especially for long-term holders. Cold wallets like Material Bitcoin keep your crypto safe from hacks, exchange failures, and online threats.
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