Those who have purchased these temperamental digital currencies but anxious about the volatility might be wondering: is it safer to cut the losses here, and sell them off?
Meanwhile, enthusiastic investors and the ‘crypto-curious’ may yet be seeing the recent dip as an opportunity to jump in, while prices are relatively low.
According to crypto exchange Amber CEO Aleksandar Svetski, this is exactly how you should see it.
“These dips are opportunities to accumulate more Bitcoin,” he told Yahoo Finance.
“All we saw (and validated by on-chain analytics) was Bitcoin moving from new people with little conviction to people that have been around for a few years with a higher degree of conviction.”
It’s true that Bitcoin has moved firmly into the mainstream; after Goldman Sachs said it was being considered as its own asset class, and hedge fund billionaire Ray Dalio admitting he had some Bitcoin and would “rather have Bitcoin than a bond”.
Non-aligned financial adviser and crypto adviser James Gerrard said the ship has sailed for mammoth returns ($10,000 in Bitcoin just 5 years ago would be worth over $1 million today), but added: “I still think the outlook is good.”
“I've started to dabble in it and have seen some decent returns thus far over the last few months,” he told Yahoo Finance.
Where should I buy cryptocurrencies?
More serious traders may favour Binance, BTC Markets or crypto.com, while Kraken is Finder’s top pick for those wanting to make large purchases.
Australia's cryptocurrency exchanges include Swyftx and Coinspot.
When it comes to the lowest fees, Binance and Robinhood, which made headlines when it temporarily froze trading for GameStop stocks came out on top.
But as the number of cryptocurrency scams rise, you should always do your research before providing your payment details anywhere. (Remember: If it’s too good to be true, it usually is.)
How much should I invest?
This is really up to you, says CoinSpot market analyst Ray Brown.
“A new user should start with an amount that they’re comfortable with investing. Each customer has different risk appetites and financial situations, so this should be considered when getting involved,” he told Yahoo Finance.
Many crypto platforms now let you buy cryptocurrency for as little as a dollar, meaning you can dabble without losing a significant chunk of your savings.
But experts don’t recommend that you invest if you can’t meet other essential financial needs first, like having an emergency fund, or paying off your debt or bills.
How do I choose which cryptocurrencies to buy?
Other well-known coins include Ethereum, Ripple, and the ‘meme’ crypto Dogecoin, championed by Elon Musk.
Gerrard revealed to Yahoo Finance what he’s invested in, and is buying more of:
Cardano (his biggest holding)
Various cryptocurrencies are associated with certain projects, he explained, and it’s worth looking at this when making an investment decision.
“The MANA coin is involved in the gaming and digital world space, that is, buying virtual real estate, and other coins have interesting real world projects such as Cardano, who have partnered with the Ethopean government to provide birth certificates, property rights and introduce basic banking to over 100 million people,” he said.
How do I keep my coins safe?
If you’ve quietly amassed a small fortune in cryptocurrency, think about taking your coins ‘offline’, Gerrard said.
“You do this by using a cold storage device which is a fancy term for a USB stick where you keep your cryptocurrency password, so it's out of the reach of online hackers,” he said.
“Just don’t lose the USB!”
But don’t keep it too safe, either – some unlucky souls who have millions of dollars locked away somewhere in the internet are just three passwords away from losing their digital treasure forever, which has led to the emergency of ‘Bitcoin bounty hunters’.
Disclaimer: The author has holdings in cryptocurrency.