As Crypto Prices Seesaw, Every New Investor Should Ask These 5 Questions

This story is part of Power Money Moves, CNET’s coverage of smart money decisions for today’s changing world.

Cryptocurrency hit new highs in late 2021, but this year hasn’t had the same luck. Bitcoin dipped below $20,000 for the first time since 2020 on Saturday, and continued to drop to a low of $17,786 Sunday. Although the popular cryptocurrency has since managed to rebound above the $20,000 mark, it remains far from its November peak of more than $67,000. Bitcoin isn’t the only cryptocurrency to experience a recent dip, the price of ethereum has similarly torpedoed this month. As such, crypto investors are navigating a whole new landscape. 

What hasn’t changed is that cryptocurrency remains controversial, risky and wildly volatile. That was made especially evident in May, when the crypto market plummeted by more than $200 billion on one day, spurred by the collapse of the important stablecoin TerraUSD.

Of course, highs and lows are nothing new in the crypto markets, and skeptics have long been characterizing crypto as an empty bubble destined to burst. Critics have called bitcoinstablecoins and NFTs

Read more…

Leave a Reply

Your email address will not be published.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