Here's what cryptocurrency experts have to say about the ups and downs of your digital assets.
This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.
“It is very interesting that every time that bitcoin goes up, it gains all the hype, people get excited,” says Kiana Danial, author of “Cryptocurrency Investing For Dummies.” But Danial adds that the last person who buys when the price is at the top “is the person who’s going to panic when the price inevitably drops.”So, what do you do when your digital assets like bitcoin crash? We asked several cryptocurrency experts to get their thoughts.
“For example, even though bitcoin was down 50% in April through May of this year, it is up 25% from those lows and still up 100% from Thanksgiving last year.” “Any asset has ups and downs — cryptocurrency has more ups and downs because of the amount of hype and FOMO involved,” Danial adds, alluding to a fear of missing out, “and the fact that people actually don’t know what it is. They buy it because they heard somebody talk about it … they are taking unmeasured risks.