Bitcoin, the largest cryptocurrency by market value, reached a new record of over $68,000 on Tuesday. It’s now trading at around $67,419, according to Coin Metrics.

In addition, ether, the second-largest cryptocurrency, which is native to the Ethereum blockchain, also hit an all-time high of over $4,857. It’s now trading at around $4,769.

Overall, the cryptocurrency market is now worth over $3 trillion, which is an exciting milestone for the sector.

With all the hype, investors may feel tempted to buy in on the fear of missing out. But financial experts warn that cryptocurrencies are volatile, risky investments, and that you should only invest what you can afford to lose.

“In order to determine how much one can place into a riskier asset class, it is important to first assess your own financial health and make sure you are funding your required buckets first,” Anjali Jariwala, certified financial planner, certified public accountant and founder of Fit Advisors, tells CNBC Make It.

You should only consider investing in a riskier asset class, like cryptocurrency, once there are “no other buckets to fund and you still have excess cash flow,” she says.

Though the specific amount you can afford to put into cryptocurrency will differ from person to person, Jariwala recommends budgeting for a few key items first.

High interest debt

Your first priority should be paying off high interest debt, like credit cards and personal loans, Jariwala says. If left unpaid, the debt will compound and
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