Ethereum Reaches Highest Price In 5 Months — What Investors Should Know
Ethereum hit a 5-month high above $4,200 this week, the highest the cryptocurrency has been since May when it saw a record price of $4,379, according to Coindesk’s Ethereum price tracker.
The cryptocurrency came within $10 of the all-time high on Thursday, with a push up to $4,370. The jump followed a new Bitcoin all-time high of $66,974 on Wednesday.
[READ MORE:] Ethereum: What You Should Know Before You Invest
The surge in crypto prices the last few days follows the debut of the New York Stock Exchange’s first Bitcoin ETF on Tuesday morning. Both Bitcoin and Ethereum — the two cryptos experts recommend investors stick with over smaller coins — have both seen price surges following the ETF launch.
Despite the jumps in the price of Bitcoin and Ethereum, experts’ advice for investors remains the same.
What Should Ethereum Investors Do?
As with any long-term investment, experts advise to ignore the ups and downs. The latest high price doesn’t mean Ethereum’s volatility has gone away.
“The real question is, owning these coins, are they going to continue to experience compound, exponential growth? Nothing in the fundamentals of cryptocurrency tells me that answer is yes,” says Jeremy Schnieder, the investing expert behind Personal Finance Club.
Because there’s no guarantee that any crypto’s value will increase, experts advise to never invest more than 5% of your portfolio in cryptocurrency. Never invest at the risk of not meeting other financial goals like paying off high-interest debt or saving for retirement.
If you’ve met all of those benchmarks, the best thing you can do is ignore the hype around new record highs or lows. Like with traditional, long-term investing, the best thing you can do is “set it and forget it,” Humphrey Yang, the personal finance expert behind Humphrey Talks, previously told NextAdvisor.