Your own real-life savings, cash flow, and defensive assets must be in a certain ratio with your crypto assets. If I have 5 million in crypto, then my real-life cash, bonds, stocks, and insurance must be at least 5 million, not counting real estate. Your real-life money is your life reserve. Even if your crypto money is really stolen, your contract blows up, your phone is robbed when you go out drinking, you are a big whale and someone has targeted you, or you go deep-sea fishing, then you still have real fiat currency to keep as a backup, at least your quality of life will not drop sharply, and you have backup savings, so you will not fall back into poverty overnight.