If there’s one word that describes Bitcoin and cryptocurrency, it’s volatile. Crypto prices soar and then seem to crash almost as quickly, while rumors, sentiment and fundamental developments are quickly factored into the market. In just a four-day period in early June, Bitcoin fell from $30,500 to about $23,500 — a decline of nearly 23 percent. Over the same time, Ethereum plunged more than 31 percent, and seemingly the whole crypto market has been sinking this year.
That volatility attracts traders looking to make a profit — but it’s nerve-wracking, especially for new investors looking to get started. And traders can expect plenty more of this volatility in the future, as new cryptocurrencies emerge and others fall by the wayside.
With cryptocurrency so extremely volatile, what should investors be doing to manage their risk?
