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Bitcoin Hit Another New All-Time High Last Month. Crypto Investors Should Ignore the Ups and Downs

Bitcoin Hit Another New All-Time High Last Month. Crypto Investors Should Ignore the Ups and Downs
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Bitcoin reached a new all-time high when it crossed $68,000 for the first time on November 10.

While the bitcoin price has seen several drops since then, the latest new record and current price is an impressive feat considering that just a year ago the coin was hovering around $15,000 per coin. Ethereum – the second most popular cryptocurrency – hit a new all-time high when it surged above $4,800 in November.

Although both Bitcoin and Ethereum have seen their ups and downs below their all-time highs since then, many experts are still predicting that the Bitcoin price will cross $100,000 at some point.

Despite the new record high, Bitcoin is still a very volatile and speculative investment. In fact, the last time crypto hit a record high in mid-April, it suddenly lost more than half its value and dropped to around $30,000 by mid-July.

So what should cryptocurrency investors do in light of this recent increase and subsequent decline? None, according to the experts we spoke to. Given the history of cryptocurrency volatility, this increase does not guarantee a long-term reversal. Bitcoin price is likely to fall again as the rally continues. The future of the cryptocurrency is sure to have a lot of volatility, and experts say this is something long-term crypto investors will have to continue to deal with.

What investors should know

If you are investing in cryptocurrency, expect the volatility to continue. That’s why experts recommend keeping your crypto investment at less than 5% of your total portfolio.

“I know these things are very volatile, like some days it can go down 80%,” Humphrey Yang, the personal financial expert behind Humphrey Talks, told NextAdvisor. “But if you believe in the long-term potential of [Bitcoin], just don’t check it out. It’s the best thing you can do.”

Just as you shouldn’t let a price drop affect your decision to buy cryptocurrencies, don’t let a sudden price increase change your long-term investment strategy. And most importantly, do not start buying more cryptocurrencies just because the price is going up. Always make sure you cover your financial bases – from your retirement accounts to emergency savings – before putting any extra cash into a speculative asset like Bitcoin.

Bitcoin’s recent big jump is nothing new. “While the long-term price of bitcoin has generally gone up, we are seeing a lot of volatility along the way,” says Kiana Daniel, founder of Invest Diva.

Read More: How Much to Invest in Cryptocurrency, According to 5 Experts

Investors should continue to hold on and not worry about volatility, like Danielle, who says she “doesn’t jump on the hype.”

Regardless of whether the encryption goes up or down, the best thing you can do is not look at it. Set it and forget it as you would any traditional long-term investment account. “If you let your emotions get in too much, you could sell at the wrong time, or you might make the wrong decision,” Yang says. “You stress about it, and I don’t think that’s a healthy way to deal with it.”

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