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Since its most recent all-time high, Bitcoin has been up and down. It Is Something That Investors Should Ignore


Since its most recent all-time high, Bitcoin has been up and down. as it soared beyond $68,000 for the first time on Nov. 10.


While Bitcoin’s price has witnessed numerous major declines since then, its recent new record and current price is an astounding performance given only a year ago the currency hovered around $15,000 per coin. Ethereum, the second most popular cryptocurrency, surpassed $4,800 in November, setting a new all-time high..


Despite the fact that Bitcoin and Ethereum have both had ups and downs since then, many analysts still believe Bitcoin will hit $100,000 at some point.


Despite the new record high, Bitcoin is still a highly volatile and risky investment. In fact, the last time the crypto hit a record high in mid-April, it unexpectedly lost almost half of its value and dropped to under $30,000 by mid-July.


So what should crypto investors do in light of this new surge, and the accompanying drops? Nothing, according to the specialists we’ve spoken to. Given the crypto’s history of volatility, this surge doesn’t ensure a long-term reversal. Bitcoin’s price is just as likely to plummet back down as it is to continue increasing. The future of cryptocurrency is set to feature much more volatility, and experts believe that’s something long-term crypto investors will have to continue dealing with.



What Investors Should Know

If you’re investing in cryptocurrencies, expect volatility to continue. That’s why experts advocate restricting your crypto assets to less than 5 percent of your whole portfolio.


“I know these things are highly unpredictable, like some days they may go down 80 percent ,” Humphrey Yang, the personal financial guru at Humphrey Talks, recently told NextAdvisor. "However, if you believe in [Bitcoin's] long-term potential, ignore it." That’s the finest thing you can do.”


Just as you shouldn’t allow a price reduction affect your choice to acquire crypto, don’t let a quick price surge impact your long-term investing plan. Even more critical, don’t start purchasing additional crypto simply because the price is increasing.

 Always make sure your financial bases are covered — from your retirement accounts to emergency reserves — before placing any additional cash into a risky asset like Bitcoin.



Bitcoin’s current large surge also isn’t anything new. "While Bitcoin's price has generally increased over time, we have seen a lot of volatility along the road," says Kiana Danial, founder of Invest Diva.

Like Danial, who says she's not "jumping on the hype," investors should continue to hold and not be concerned about the volatility.


No matter whether crypto is going up or down, the smartest thing you can do is to not look at it. Set it and forget it as you would any regular long-term investing account. If you allow your emotions to get the best of you, you may sell at the wrong time or make the wrong judgment," Yang says.. "I don't believe that's a good way to deal with it since you're stressed about it."

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