Even some bulls say to start small if you're interested in investing in cryptocurrency.

Billionaire Mike Novogratz, founder and CEO of Galaxy Digital, a digital asset and blockchain company, recommended starting with 2% to 5% of your overall portfolio during CNBC's Financial Advisor Summit on Wednesday. You could even aim for around 1%, he said.

If you want to learn about crypto, you should at least "get off zero," Novogratz said, because doing so will get you engaged.

"Once you have a little bit of an allocation, you start following the story," he said. "You learn about things by putting a little money on the line. Then you pay attention to the article, you pay attention to the interview."

As an industry insider, it makes sense for Novogratz to encourage as many people as possible to learn more about and invest in crypto.

That said, other financial experts recommend similar parameters.

"I'd say 1% on the more conservative side, and no more than 5% of your total portfolio if you're a growth-focused investor," Brian Vendig, president of MJP Wealth Advisors in Westport, Connecticut, previously told CNBC Make It. 

What to know before investing in crypto

Bitcoin remains the largest cryptocurrency by market cap, and its price steadily increased throughout 2023, rising even higher this year. It has generally held between $60,000 and $70,000 since March, a steep increase from its closing price of around $27,000 on May 24, 2023, according to Coin Metrics data.

Although bitcoin is currenting performing well, investing in crypto doesn't make sense for everyone. In fact, financial advisors generally advise against making it a significant part of your portfolio. 

That's because unlike stocks and bonds, cryptocurrencies don't derive their value from underlying assets. Their prices are highly volatile and only worth as much as investors are willing to pay for them on any given day. In general, you should only invest as much in crypto as you're willing to lose.

Importantly, you should know why you're investing in crypto. Ask yourself: How can it help me achieve my financial goals? 

"If an investor can answer that appropriately, then you can actually figure out the sizing you should have," Vendig says. "Do you want to dip your toe into this asset class? Or is that asset class not even rational for you as an investor?"

Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C., previously told CNBC that allocating around 2% or 3% of your portfolio to crypto is "more than enough."

"The more volatile an asset class is, the less of it that you need," he said.

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