I want to know did you buy any Bitcoin or Ethereum or Dogecoin or any of the many different cryptocurrencies out there over the past couple of years? No shame at all if you did because you were definitely not alone.
The prices of many cryptocurrencies skyrocketed during 2020 as billions and billions of dollars flowed into the crypto world. But with the collapse of crypto exchanges like FDX, prices have begun to plummet with Bitcoin falling from well over sixty thousand dollars in November of 2021 to under 17 000 just a year later.
Some see this drop in the price of cryptocurrencies as an opportunity to buy low and get rich once the prices return to their old highs or maybe even new highs that we haven't even seen before. But is this a realistic strategy or is this just setting crypto hopefuls up for even bigger losses?
The very unsatisfying answer to this question is, no one really knows. Many experts believe that the crypto market could look bleak for at least the next couple of years. If investors continue to pull their money out of crypto, over fears of even bigger collapses like FDX, we could see prices fall even further.
All investing inherently comes with risk, but the reality is that crypto markets are extremely volatile and lack some of the regulations needed to make investors feel secure. So even though prices are at lows we haven't seen in years, there's still room for prices to fall even further. So, invest at your own risk.