Bitcoin Hit Another New All-Time High This Month. Why Crypto Investors Should Ignore the Ups and Downs – NextAdvisor

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Bitcoin hit another new all-time high when it went above $68,000 for the first time on Nov. 10.

While its price has dropped as low as $56,000 since then, Bitcoins latest new record and current price is an impressive feat considering just a year ago the currency hovered around $15,000 per coin. Ethereum the next most popular crypto has seen a recent surge as well, and this month notched another new all-time high of its own above $4,800.

The surge in Bitcoins value in recent weeks follows the much anticipated first Bitcoin ETF debuting on the New York Stock Exchange, and a record-breaking October for the stock market in general.

Despite the new record high, Bitcoin is still a highly volatile and speculative investment. In fact, the last time the crypto saw a record high in mid-April, it abruptly lost over half of its value and plunged to around $30,000 by mid-July.

So what should crypto investors do in light of this latest increase? Nothing, according to the experts weve talked to. Given the cryptos history of volatility, this increase doesnt guarantee a long-term reversal. Bitcoins price is just as likely to fall back down as it is to continue climbing. The price swings are going to keep happening, and experts say theyre something long-term crypto investors will have to continue dealing with.

If youre investing in cryptocurrency, expect volatility to continue. Thats why experts recommend keeping your crypto investments to less than 5% of your total portfolio.

I know these things are super volatile, like some days they can go down 80%, Humphrey Yang, the personal finance expert behind Humphrey Talks, previously told NextAdvisor. But if you believe in the long-term potential of [Bitcoin], just dont check on it. Thats the best thing you can do.

Just like you shouldnt let a price drop influence your decision to buy crypto, dont let a sudden price increase alter your long-term investment strategy. Even more importantly, dont start buying more crypto just because the price is rising. Always make sure your financial bases are covered from your retirement accounts to emergency savings before putting any extra cash into a speculative asset like Bitcoin.

Bitcoins latest big jump also isnt anything new. While in the long-term Bitcoins price has generally gone up, we experience a lot of volatility along the way, says Kiana Danial, founder of Invest Diva.

READ MORE: How Much to Invest in Cryptocurrency, According to 5 Experts

Investors should continue to hold and not worry about the fluctuations, like Danial, who says shes not jumping on the hype.

No matter if crypto is going up or down, the best thing you can do is to not look at it. Set it and forget it like you would any traditional long-term investment account. If you let your emotions get too much into it then you could sell at the wrong time, or you might make the wrong decision, says Yang. You stress out about it, and I dont think thats a healthy way to approach it.

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

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