How Much of Your Income Should Go Into Crypto?

Ask a Nigerian crypto group chat how much of your salary to put into crypto, and someone will reply within seconds: only what you can afford to lose. That's true. It's also not much help when you're looking at your salary alert and trying to settle on an actual number.

So here's a framework that gets you to one. It can't tell you what's right for you, because that depends on things only you know. It will make sure you answer the questions in the right order.

First: what kind of crypto?

"Putting money into crypto" can mean very different things:

• Holding USDT or another stablecoin to keep dollar value is closer to saving in dollars. It has its own risks, but it isn't designed to swing.
• Buying Bitcoin, Ethereum or other coins is investing in assets whose prices can halve or double.
• Being paid in crypto for your work is income, not an investment decision. If that's you, our guide to budgeting when you earn in crypto is the better starting point.

This post is mostly about the second kind: money you choose to put into coins that move.

The order that protects you

Work through these steps in order. Skipping ahead is how people end up selling at the worst possible moment.

1. Cover this month's needs

Rent, food, transport, school fees, data, fuel for the generator and the money you send to family. All of that comes off the top. Crypto is never paid for out of bill money.

2. Build an emergency fund

A common rule of thumb is three to six months of essential expenses, kept in naira or somewhere stable you can reach within a day. The car breaks down, a relative ends up in hospital, a contract finishes early. Without an emergency fund, your crypto becomes your emergency fund, and emergencies have a habit of arriving when prices are down.

3. Clear expensive debt

If you owe a loan app or anyone else charging high interest, paying it off is a guaranteed return that no coin can promise. And never borrow to buy crypto. Losses on borrowed money hurt twice.

4. Ring-fence your near-term goals

Next year's rent, a wedding, a master's abroad, Detty December plans: money you'll need within a year or two shouldn't sit in coins that can fall by half in a few months.

5. Then choose your crypto share

Now you're deciding with money that's genuinely spare. This is where percentages come in.

The bands people use

These are rough bands people commonly talk about, not recommendations. They're a share of what you save or invest each month after steps 1 to 4, not a share of your whole salary.

Approach	Share of monthly savings	Who it tends to fit
Cautious	1–5%	New to crypto, dependants to support, irregular income
Moderate	5–10%	Emergency fund in place, steady income, plans to hold for years
Adventurous	Above 10%	Long timeline, other savings already built, can stomach big falls

Here's how that looks with made-up numbers. Kemi takes home ₦400,000 a month. After rent, food, transport and family support, ₦100,000 is left to save. The emergency fund is already built and there's no debt. At 5%, that's ₦5,000 a month into crypto; at 10%, ₦10,000. The rest goes into other savings.

₦5,000 or ₦10,000 might sound small. That's the point. A share that size lets you learn how crypto behaves without putting your rent at risk, and you can raise it as your knowledge, income and savings grow. Our guide to starting crypto with ₦10,000 shows what a small start looks like.

Four questions that matter more than the percentage

1. Could you watch this amount halve and leave it alone? If the honest answer is no, the amount is too high.
2. Does anyone depend on this money? Children, parents, a business. If so, lean towards caution.
3. Do you understand what you're buying? If you can't explain why you hold a coin, start smaller.
4. Will you still sleep at night? If you'd be checking prices at 2am, scale back.

Keeping it in proportion over time

• Buy in regular amounts. Spreading purchases out is calmer than one big buy; see dollar-cost averaging with naira.
• Rebalance now and then. If crypto grows into a much bigger share than you planned, selling some back to naira restores your plan. On KWIQ, selling crypto for naira is free.
• Revisit when life changes. A new job, a baby, a business or a move abroad is a reason to look at your number again.

Our guide to protecting your money when prices swing has more on staying steady when the market isn't.

Money that should never go into crypto

• Rent, school fees and bill money.
• Loans of any kind, including loan apps and salary advances.
• Your business's working capital.
• Money you're holding for someone else, such as an ajo pot or family contributions.

And anything that promises fixed daily or weekly profit isn't crypto investing at all. Check the Ponzi red flags before you hand over a single kobo.

This is general information to help you think it through, not personal financial advice. If your situation is complicated, a qualified financial adviser can help.

Pick your number this payday

Write your number down before your next salary lands, and stick with it for six months before you change it. When you're ready to buy, or want to turn some crypto back into naira, download the KWIQ app and check the rate before you confirm. If storage is tight, you can create a free account on the web instead. To see what any amount is worth today, try the crypto to naira calculator.