Investors should not be put off by the price volatility for cryptocurrencies like bitcoin and ethereum because these digital assets are still very new and offer nearly unparalleled returns, experts told CNBC.
On Tuesday, ethereum's price fell below $200 for the first time since May 30; the cryptocurrency has fallen more than 50 percent since hitting an all-time high of over $400 in early June. Meanwhile in May, a price correction for bitcoin wiped off nearly $4 billion in its market value.
Bobby Lee, CEO of Chinese bitcoin exchange BTCC, told CNBC the gyration in prices was normal as the true value for these assets have yet to be discovered.
"It's not a problem," he said on the sidelines of the Rise conference in Hong Kong. "If you think about it, the volatility is natural for an asset class that is so new. There's no price discovery for it (yet)."
He explained as people have yet to discover the true value of an asset like bitcoin, they tend to trade them at a certain, discounted level before the market realizes it could be worth more and then the price jumps.
Cryptocurrencies are partly becoming more popular because countries and companies are taking a closer look at the technology that underpins them: blockchain. Japan, for example, approved bitcoin as a legal payment method in April.
"We're now sort of at ... a tipping point, where people are now considering bitcoin or ethereum or digital assets as more mainstream," Dave Chapman, managing director of Hong Kong-based commodities and digital assets trading house Octagon Strategy, told CNBC. "A lot of the people that we service are actually very comfortable with having 1 percent of their net worth into bitcoin or ethereum."