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Four ways to protect yourself against the next crypto crash.
Key points
- Severe price crashes are a normal part of crypto investing, so it’s important to be ready.
- Only invest money you can afford to lose and make sure your emergency fund is topped up before you get into crypto.
The cryptocurrency market is notoriously volatile. That can mean drops of more than 50% in a matter of months as well as rapid price gains. After a price spike in November 2021, prices have trended downwards in recent months. It isn’t yet clear whether this is part of a bigger crypto market crash. But it’s certainly a healthy reminder that crypto prices can go down and investors need to be ready.
As a crypto investor, there are several ways to prepare for a market crash. Here are four of them:
