Then China began cracking down on cryptocurrency mining, resulting in crypto prices plummeting even further.
Cryptocurrencies are also volatile, simply because they’re highly speculative and many investors are still on the fence about them.
Although this most recent crash can be intimidating, the good news is that this is nothing new for cryptocurrencies.
While past performance doesn’t predict future returns, history has shown that the biggest names in the crypto space — namely Bitcoin and Ethereum — have been able to withstand volatility.
As with any investment, the key to building wealth is to hold your investments for the long term.
The best reason to invest in cryptocurrency is if you truly believe in its long-term potential.
If you do invest in cryptocurrency, it’s important to make sure you’re investing wisely.
Even if you can afford to invest thousands of dollars, for example, if you know you’d lose sleep over losing that much money, you may want to scale back your investments.
But if you believe in its potential and are willing to hold your investments for years or even decades, it could pay off down the road.