Hey Taylor – I checked out of Crypto a while back but I’m wondering about it as a new investment option. I feel like I always hear about the market crashing and yet those coins are still worth so much. What gives? – Reggie

Hey Reggie – Cryptocurrency has certainly held its value in ways that surprise a lot of people. That said, it’s still an unpredictable market—arguably more so than most—which is why many approach it with both curiosity and caution. Right now, it’s especially volatile, so let’s take a look at what’s happening.

–1. Market parallels. Crypto doesn’t operate in a vacuum. It tends to have big swings without much warning and often catches analysts off guard. This latest downward trend has coincided with broader market concerns, including inflation and economic uncertainty, which impact investor sentiment across the board. While some see crypto as an alternative to traditional investments, that doesn’t necessarily make it a low-risk alternative. If anything, it may carry even greater risks.

–2. Lasting technology. Bitcoin has been around for nearly two decades now, and blockchain technology continues to evolve. Some might still view crypto as a passing trend, but others see it as a long-term innovation with significant potential. The challenge lies in separating established projects from speculative ones. Like any investment, taking the time to research and understand what you’re putting money into could make a big difference. Volatility is part of the package, so looking at crypto as a technological development rather than a quick-profit opportunity might help set expectations.

–3. Exercise caution. Crypto has created wealth for some, but its long-term trajectory remains uncertain. With trillions of dollars moving in and out of the space, price swings can be dramatic. Some investors choose to engage with it as part of a diversified approach, ensuring that no single market fluctuation jeopardizes their financial stability. Others may decide that the uncertainty outweighs the potential benefits.

Rather than viewing crypto as an all-or-nothing decision, some people choose to approach it as just one piece of a broader strategy that includes real estate, stocks, and retirement planning. If you’re interested, it might be worth considering how much risk you’re comfortable with before getting involved. Whatever you decide, staying informed and making intentional choices could go a long way. Best of luck!

TAYLOR J KOVAR
CHIEF EXECUTIVE OFFICER
CERTIFIED FINANCIAL PLANNER™