Connect with us

Cryto Mining

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

Published

on

Share
Mortgages
Credit Cards
Loans
Insurance
Banking
Financial Goals
Follow Us
Two Things Crypto Investors Should Know About the Infrastructure Bill President Biden Signed This Week
Crypto Scams Are on the Rise — Here’s How Investors Can Protect Their Coins
The Biden Administration Wants New Legislation to Regulate Stablecoins. Here’s What That Means for Investors
Ethereum Is Back Above $4,200. Here’s What Investors Should Do Next
Bitcoin Hits New All-Time High of $66,974. Here’s What Investors Should Do Now
New Bitcoin ETF Grows at Record Speed. Here’s What Investors Should Know
Blockchain ETFs Let Investors Expose Their Portfolio to Crypto Without Actually Buying Any. Here’s How They Work
How to Buy Crypto on PayPal, and What You Should Know Before You Do
Best Cryptocurrency Exchanges of November 2021
How to Decide on a Hot Wallet or Cold Wallet for Your Crypto, and Whether You Need One at All
Share
Bitcoin hit a new all-time high last Wednesday when it went above $68,000 for the first time.
While its price has dropped below $59,000 twice this week, Bitcoin’s 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 last week notched another new all-time high of its own above $4,800.
The surge in Bitcoin’s 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 we’ve talked to. Given the crypto’s history of volatility, this increase doesn’t guarantee a long-term reversal. Bitcoin’s 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 they’re something long-term crypto investors will have to continue dealing with.
If you’re investing in cryptocurrency, expect volatility to continue. That’s 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 don’t check on it. That’s the best thing you can do.” 
Just like you shouldn’t let a price drop influence your decision to buy crypto, don’t let a sudden price increase alter your long-term investment strategy. Even more importantly, don’t 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.
Bitcoin’s latest big jump also isn’t anything new. “While in the long-term Bitcoin’s 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 she’s 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 don’t think that’s a healthy way to approach it.”
RELATED: Top Crypto News This Week

Two Things Crypto Investors Should Know About the Infrastructure Bill President Biden Signed This Week
Mortgage Rates Dropped Again Last Week — Hitting 3.15%. Here’s Why Experts Expect Them to Go Back Up Soon
Best Cash Back Credit Cards With No Annual Fee
How to Maximize Credit Card Rewards with Online Shopping Portals
North American Savings Bank Review 2021: Options for Non-Traditional Homebuyer Profiles
Learn all about finances in next to no time with our weekly newsletter.
In your inbox every Tuesday
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Facebook
Twitter
Instagram
LinkedIn
YouTube
Tell us what you think
Did this article answer your questions?
Time is Up!
Let us know what questions you still have about this topic or any others.
Time is Up!
Thanks for your feedback!
Before you go, sign up for our newsletter to get NextAdvisor in your inbox.
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Investing
8 min read
Card Comparisons
5 min read
Credit Cards
6 min read
Cryptocurrency
10 min read
At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.
Subscribe to our newsletter
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Follow us
© 2021 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use, Privacy Policy (Your California Privacy Rights) and California Do Not Sell My Personal Information. NextAdvisor may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

source

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Cryto Mining

ETC Labs believes regulation is the key to preventing future 51% attacks – Cointelegraph

Published

on

source

Continue Reading

Cryto Mining

US banking regulators are looking to clarify crypto rules in 2022 – The Verge

Published

on

Filed under:
One of them is already working to make banks’ responsibilities clearer
The Federal Reserve, Federal Deposit Insurance Corporation (or FDIC), and Office of the Comptroller of the Currency (OCC) have issued a joint statement announcing a plan to clarify the rules and regulations around how banks can use cryptocurrencies over the next year (via Bloomberg).
The agencies say they’re focusing on setting expectations for what banks can do when it comes to holding crypto, allowing customers to obtain crypto, issuing their own stablecoins (or cryptocurrencies whose value is tied to a fiat currency like the US dollar), and taking crypto as collateral for loans and keeping it on their balance sheets. According to the letter, the goal is to make sure consumers are protected and that banks act responsibly. The regulators also say it’s an attempt to make sure the financial industry isn’t used to launder ill-gotten currency, something the Treasury Department has been focusing on recently.
The OCC has already made moves in this direction — on Tuesday, the acting comptroller released a letter clarifying decisions that the office had made throughout 2020 and early 2021. Now, the letter says, banks will have to ask permission from regional regulators before getting into certain crypto fields.
Previously, the Comptroller said banks were allowed to hold cryptocurrencies for customers as well as assets being used to back stablecoins. Banks were also told they could use stablecoins and act as nodes on blockchain networks. While financial institutions will still be able to carry out these activities, they’ll have to be able to prove to regulators that they can do so safely and responsibly.
These announcements come as some crypto companies have skirmished with regulators over what legal classifications their products fall under. Recently, Coinbase canceled its Lend program after a public feud with the Securities and Exchange Commission over whether what it was selling counted as securities (and would therefore fall under heavier legal scrutiny). The Treasury has also proposed that large cryptocurrency transfers be reported to the Internal Revenue Service, and has asked Congress to start regulating stablecoins.
Subscribe to get the best Verge-approved tech deals of the week.
Please confirm your subscription to Verge Deals via the verification email we just sent you.

source

Continue Reading

Cryto Mining

Altcoin Roundup: 3 signs that show crypto mass adoption is underway – Cointelegraph

Published

on

source

Continue Reading

Trending