Crypto Trading: Wealth Builder or Wealth Destroyer?

Key Takeaways

• Crypto trading can deliver huge wins — but it’s just as likely to wipe you out.
• The difference between trading and investing matters: trading is speculation, not long-term wealth building.
• Use crypto like chilli in a curry: a little might add spice, but too much can burn you.
• Keep exposure tiny (1–5% max) and only after your core asset classes, such as stock market or real estate, are secure.
• Disciplined portfolio construction, diversification, and understanding market cycles are non-negotiable.

The Line Between Genius and Burnout Is One Trade Away

Crypto has made overnight millionaires.
It has also vaporised life savings.

So is crypto good?
Is it bad?
Or is that the wrong question to begin with?

In this piece, we’ll cut through the hype to get to the real issue: where (if anywhere) does crypto trading belong in a serious financial plan?

The Good: What Crypto Can Offer

Let’s be honest — crypto trading has some appeal, especially compared to established asset classes like shares, bonds, or mutual funds. Here’s why people get drawn in:

• Volatility: Big swings mean big opportunities for returns.
• 24/7 markets: Unlike the stock market, crypto never sleeps.
• Low barrier to entry: Anyone with a phone can start trading.
• Innovation: Decentralisation, smart contracts, tokenisation — the ARK Innovation ETF has even tried to capture this space.

When markets are rising, it feels like easy money. But market timing is fragile, bubbles always burst, and herd mentality can drag you under.

The Bad: What Crypto Traders Don’t Talk About

For every story of someone striking it rich, there are thousands who don’t. Why?

• Emotional swings: Crypto is like trading on Red Bull and fear.
• No fundamentals: Most coins aren’t backed by earnings, real estate assets, or productive businesses.
• Security risks: Hacks, rug pulls, and frauds are common.
• Tax headaches: Every trade can trigger a capital gains event under fiscal policy rules.
• Addictive platforms: Crypto apps gamify market participation, leading to compulsive behaviour.

Without discipline and diversification, you end up as someone else’s exit strategy.

Investing vs Trading: Know the Difference

• Investing: Long-term wealth mindset, researched decisions, fundamental backing across asset classes like stocks, bonds, developed markets, or even mutual funds.
• Trading: Fast moves, speculation, relying on short-term market cycles and market timing.

Crypto trading is closer to speculation than investing.

Before you dive in, ask yourself:

• Do I have a system?
• Can I emotionally handle losses?
• Would I treat this like a core component of my portfolio construction?

If you can’t tick all three, it’s not worth it.

The Mountway View: Should You Touch It?

Here’s how we see it:

• ✅ Crypto can belong in a financial plan — but it’s the chilli in the curry, not the whole meal.
• ✅ No more than 1–5% of your investable assets, and only after your core foundations like stock market, real estate, and mutual funds are solid.
• ✅ Only use money you can afford to lose.
• ✅ Don’t invest in something you don’t understand.
• ✅ Don’t confuse innovation with guaranteed returns.

Crypto may play a role in the financial landscape, just as central banks, monetary policy, and interest rates shape traditional markets. But your financial future doesn’t need to be staked on it.

Hype Doesn’t Equal Wealth

Crypto isn’t “good” or “bad.”
It’s a tool — and like any tool, it depends on how you use it.

At Mountway, we help Aussies build strategies around stable foundations — stock market, real estate, diversified asset classes — with crypto only as a side note. It’s about Wealth Building that lasts, not chasing the next dot-com boom.

Curious where crypto fits into your bigger plan? Let’s chat.