Answer · confidence: partial
How did crypto prices move, and did beginners who bought them win?
Research question: How have prices of major crypto assets moved since the early exchanges opened, and what did beginners who bought spot coins experience?
Bitcoin has repeatedly gone through rapid price rises followed by steep drops, including in 2011, 2013-2014, 2017-2018, and 2021-2022 3. Its price has swung widely since launch, bringing rapid gains and considerable losses for early buyers 12. Prices rose steeply in 2021, some observers called it a bubble, and steep drawdowns followed through 2022 67. Retail buyers of Bitcoin, Ethereum, and Dogecoin through six German brokers paid all-in costs of roughly 123 to 458 basis points, mostly from broker-embedded fees rather than market spreads 12. The newest facts are dated 2026, so they are recent relative to October 2026, but the records do not give specific price levels from the early exchanges through today 112.
Checked 2026-10-21. Only documented and supported facts are used.
Dig deeper on this questionSources
[1] supported
Retail investors buying Bitcoin, Ethereum, and Dogecoin through six German brokers paid average all-in execution costs of roughly 123 to 458 basis points, far above the 16 to 34 basis point exchange spreads.
"Average costs range from 123 to 458 basis points across brokers, far above quoted exchange spreads of 16–34 basis points."The Retail Costs of Cryptocurrency Trading (2026)
[2] supported
Most of the cost paid by these retail crypto traders came from fees embedded in the broker's pricing rather than from market spreads.
"Most costs therefore reflect embedded broker-implied fees rather than market spreads."The Retail Costs of Cryptocurrency Trading (2026)
[3] documented
Bitcoin has repeatedly gone through rapid price rises followed by steep drops, including in 2011, 2013-2014, 2017-2018, and again in 2021-2022.
"These episodes of rapid price appreciation followed by steep drawdowns have occurred multiple times throughout bitcoin’s history, including in 2011, 2013-2014, and 2017-2018, before repeating again in 2021-2022."497K PROSHARES TRUST (CIK 0001174610) 2024-04-10
[4] supported
Market volatility is the risk most widely recognized by Indian crypto investors, and the study reports it affects over 75% of them.
"Marketvolatilityremainsthemostcriticalrisk,affectingover75%ofinvestors."Risk Involvement in Cryptocurrency Trading: A Study on Indian Investors (2025)
[5] supported
Market conditions explained little of the variation in retail trading costs, and registration under the EU's MiCA framework was not associated with lower costs.
"Market conditions explain little variation, while MiCA registration is not associated with lower costs."The Retail Costs of Cryptocurrency Trading (2026)
[6] supported
Digital asset prices, including bitcoin, rose steeply during 2021, and some market observers called it a bubble.
"For instance, there were steep increases in the value of certain digital assets, including bitcoin over the course of 2021, and multiple market observers asserted that digital assets were experiencing a “bubble.”"497K PROSHARES TRUST (CIK 0001174610) 2024-04-10
[7] documented
The 2021 increases were followed by steep drawdowns in digital asset trading prices, including bitcoin, throughout 2022.
"These increases were followed by steep drawdowns throughout 2022 in digital asset trading prices, including for bitcoin."497K PROSHARES TRUST (CIK 0001174610) 2024-04-10
[8] supported
Bitcoin prices kept showing extreme volatility in 2023 and 2024, and that volatility is expected to persist.
"In 2023 and over the course of 2024, bitcoin prices have continued to exhibit extreme volatility. Such volatility is expected to persist."497K PROSHARES TRUST (CIK 0001174610) 2024-04-10
[9] supported
Bitcoin's periods of high investor disagreement were associated with negative subsequent returns, higher turnover growth, and higher volatility.
"High disagreement is associated with negative returns, high turnover growth, and high volatility, confirming the theory's predictions."Does Dispersed Sentiment Drive Returns, Turnover, and Volatility for Bitcoin? (2021)
[10] supported
At a monthly frequency, a one standard deviation rise in disagreement was followed by a cumulative return about 9.2 percentage points lower over the next eight months.
"at the monthly frequency, a one standard deviation increase in disagreement leads to a 9.2 percentage points lower cumulative return over the following eight months"Does Dispersed Sentiment Drive Returns, Turnover, and Volatility for Bitcoin? (2021)
[11] supported
The negative effect of disagreement on Bitcoin weakened significantly after shorting instruments were introduced at the end of 2017.
"As the theory predicts, the disagreement effect weakens significantly after shorting instruments were introduced at the end of 2017."Does Dispersed Sentiment Drive Returns, Turnover, and Volatility for Bitcoin? (2021)
[12] supported
Bitcoin's price has swung widely since its launch, bringing rapid gains and considerable losses for early buyers.
"Over the years, Bitcoin’s price volatility has led to rapid gains and also considerable losses."Bitcoin Price History (2009-2026)
[13] supported
Bitcoin's weekly mean return was 3.79 percent, with a standard deviation of 16.64 percent, showing very high volatility.
"For example, theweeklymeanreturnonBitcoinis3.79percentwithastandarddeviationof16.64percent."Risks and Returns of Cryptocurrency (2020)
[14] supported
Average daily Bitcoin trading volume in US dollars rose sharply after July 2017, with most exchanges seeing more than a tenfold increase compared with the first half of 2017.
"This is more than a tenfold increase in trading volume for most exchanges."Trading and Arbitrage in Cryptocurrency Markets (2018)
[15] supported
Crypto returns have a mean and standard deviation about ten times higher than those of traditional asset classes.
"We observe that the mean and the standard deviation of returns are an order of magnitude higher than those for the traditional asset classes."Risks and Returns of Cryptocurrency (2020)
[16] supported
On most exchanges the number of daily trades almost tripled between the first half of 2017 and the period from August 2017 to February 2018, with Coinbase rising from 28,000 to about 84,000 trades a day.
"On most exchanges the number of trades almost triples between the first half of 2017 and the period from August 2017 to February 2018."Trading and Arbitrage in Cryptocurrency Markets (2018)
[17] documented
A daily 20 percent drop in Bitcoin's price happens about 0.5 percent of the time, while a daily 20 percent gain happens almost 1 percent of the time.
"a “disaster” of the daily 20 percent negative return on Bitcoin happens with the probability of 0.5 percent while a “miracle” of the same size happens with the probability of almost 1 percent."Risks and Returns of Cryptocurrency (2020)
[18] supported
Bid-ask spreads on Bitcoin exchanges were tight, averaging about 10 basis points, and about 2-3 basis points on the most liquid exchanges.
"The bid-ask spread on average is about 10 basis points, and on the most liquid exchanges it is about 2-3 basis points."Trading and Arbitrage in Cryptocurrency Markets (2018)
[19] supported
Bitcoin has crashed nearly a dozen times, with notable crashes in June 2011, April 2013, and December 2017.
"Historically, Bitcoin has crashed nearly a dozen times, with some of the most notable crashes occurring in June 2011, April 2013, and December 2017."Bitcoin Price History (2009-2026)
[20] documented
Cryptocurrency returns have a high probability of extreme outcomes, both sharp crashes ("disasters") and sharp rallies ("miracles").
"Thereturnsexperiencehighprobabilitiesof“disasters”and“miracles”."Risks and Returns of Cryptocurrency (2020)
[21] supported
Crypto returns are positively skewed, and this skewness grows as the return frequency moves from daily to monthly.
"The returns have positive skewness increasing with the frequencies fromdailytomonthly."Risks and Returns of Cryptocurrency (2020)