The United States is making a bold bid to become the global leader in cryptocurrency, with President Donald Trump declaring his intention to position the country as the world’s “crypto capital.” However, financial experts continue to caution that digital assets remain speculative and highly volatile, emphasizing that regulated markets offer the safest path for investors.
Trump’s Crypto Ambitions
President Trump has moved swiftly to integrate cryptocurrency into the U.S. financial system, appointing a cryptocurrency czar and issuing executive orders aimed at promoting the country’s dominance in digital assets and financial technology. Among his initiatives is the creation of a strategic bitcoin reserve, signaling an effort to further legitimize cryptocurrency as a mainstream financial instrument.
The enthusiasm surrounding these developments has fueled interest in cryptocurrency investments, particularly among younger investors. A survey by market research firm YouGov Dot Com Ltd. revealed that 42% of Generation Z investors in the U.S. held cryptocurrency in 2024, compared to 36% of millennials, 24% of Generation X, and just 8% of baby boomers.
However, despite this growing interest, experts continue to stress the risks associated with digital assets.
Canada’s Regulatory Edge
While the U.S. is working to develop a regulatory framework for cryptocurrencies, Canada has been ahead of the curve, having established a structured environment in 2018. This regulatory clarity has helped mitigate some of the issues seen in the U.S. crypto space, according to Amber D. Scott, co-founder and chairperson of Outlier Solutions Inc.
“We haven’t necessarily had all the issues the U.S. has had, partly because we’ve had that regulatory clarity,” she said.
Alex Tapscott, managing director of the digital assets group at investment firm Ninepoint Partners LP, noted that Canada’s proactive stance has allowed it to remain a leader in crypto investment vehicles.
“In general, our regulators have been open-minded to new asset classes,” he said. “We were the first country to approve bitcoin funds and bitcoin ETFs.”
While Canada currently holds an advantage in capital markets, Tapscott warned that the U.S. could close the gap if it develops a more open regulatory environment for digital assets.
Navigating Crypto Investments
Financial planners suggest that young investors have a greater ability to absorb losses and recover over time. “If you lose a lot of money, you have a longer runway,” said Andrew Dobson, a certified financial planner at Objective Financial Partners Inc.
However, experts emphasize the importance of a measured approach. “When I think about high-risk investable assets, I think about all of my money in a giant pile. If it starts to catch fire, at the point when I start to cry — I need to invest less than that,” Scott advised.
Dobson likened cryptocurrency’s volatility to foreign currency exchange rates, noting that its price fluctuations should be factored into any investment decision. “If you look at your chart in three years and it looks up and down like this, are you going to be happy?” he asked.
Protecting Against Crypto Scams
Experts caution that investors should remain wary of high-pressure sales tactics and fraudulent schemes. Scott advised that Canadians can check the legitimacy of investment firms through regulatory bodies such as the Canadian Securities Administrators.
“There are securities administrators bodies for each province,” she said. “I would want to see that they’re registered appropriately. That shows some credential process they’ve been through.”
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) also maintains a list of investment scams and companies cited for violations, providing further resources for investors to verify the legitimacy of potential opportunities.
“If you’re feeling high-pressure sales tactics from a crypto offering, pump the brakes,” Scott warned. “Go look at these websites and see if it’s a potential scam.”
Balancing Risk and Reward
Tapscott drew comparisons between today’s crypto landscape and the early internet era of the late 1990s. “Many people launched websites and products, and the vast majority are no longer around — but a few became (Amazon.com Inc.) and Facebook (now Meta Platforms Inc.),” he said. “Like any new industry, many new things will not work out. … That’s a risk for investors, but it’s not an indictment of the tech itself.”
To mitigate risks, financial advisors recommend diversification. Cryptocurrency should represent only a fraction of an investor’s portfolio, balanced with traditional stocks and fixed-income holdings.
“To be safe, stick to what’s in the regulated market,” Tapscott advised, pointing to investment options such as bitcoin and ethereum exchange-traded funds (ETFs) as safer alternatives to speculative digital assets.
Scott also urged investors to resist the temptation of investing based on hype. “Humans aren’t great at understanding risk tolerance,” she said. “When something’s going up, they think it’s always going up — everyone thinks they’re a genius in a bull market.”
Instead, she suggested taking a long-term approach. “Think about crypto as a ‘get-rich-slow scheme’ and you’ll make better choices,” she said. “FOMO, or fear of missing out, is something fraudsters capitalize on.”
A Cautious Approach is Key
As the U.S. moves aggressively to establish itself as a global leader in cryptocurrency, investors face both opportunity and uncertainty. While Trump’s policies signal increasing government acceptance of digital assets, experts continue to advocate for careful, well-researched investment decisions. For those looking to enter the crypto space, regulated markets and a diversified portfolio remain the safest bet.
