You definitely need to be careful, do your research and have conviction when choosing to invest with anything. As you see plastered all over brokerages these days - past performance may not be an indicator of future results. If you own index funds then a recover is pretty much guaranteed, however if you own individual company shares - like buying into Gamestop during it's recent peak, you might end up waiting forever to make your money back and you need to hope they don't go bankrupt in the meantime. You quoted Warren Buffett who was primarily talking about the stock market and crypto may not be a similar comparison. Companies produce products or services which they sell to produce an income, with cryptocurrency you're just hoping to sell it at a higher price than you bought in to make any profit. "Parabolic" is also an overly emotive term and trying to make money too quickly is where lots of people go wrong. Aim for a slow and steady approach to wealth generation, if you make money too fast it is very possible that you'll lose it all with the same speed.