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It's been a tough time for cryptocurrency but, despite volatility, you still need to know how the technology works, said Douglas Boneparth, a certified financial planner based in New York.

The digital currency market dropped by nearly $1.4 trillion in 2022, following a cascade of bankruptcies and liquidity issues, including the high-profile collapse of crypto exchange FTX. In March, crypto-focused Silvergate Capital announced plans to wind down operations and regulators shut down crypto lender Signature Bank.

Although the crypto market rallied at the start of 2023, assets recently tumbled again, with bitcoin falling below $20,000 on Friday, triggered by a stock market sell-off in the U.S. But bitcoin surged by 10% on Monday, following the news of U.S. regulators' plans to safeguard depositors and financial institutions associated with Silicon Valley Bank.

Here are more FA Council perspectives on how to navigate this economy while building wealth.

Boneparth, who is president of Bone Fide Wealth and a member of CNBC's Financial Advisor Council, said the recent events and crypto market volatility have made him even more "bullish" on learning about the technology.

"Clearly, the decentralized financial world is interconnected to the traditional financial world more so now than ever before," he said.

An early adopter of digital currency since 2013, mostly in bitcoin, Boneparth said there's plenty to learn about the technology we'll inevitably see more from in the future.

"This doesn't necessarily mean you should be allocating your money there," he said. But he believes you should be investing your time and energy to see where the technology may be heading.

"I've learned a lot in my journey without having to take an exorbitant amount of risk," Boneparth said.

When it comes to cryptocurrency, he said the "best thing you can do" is learn about the technology and how decentralized finance works. "A little bit would go a long way," he added.

Ive learned a lot in my journey without having to take an exorbitant amount of risk.

Douglas Boneparth

President of Bone Fide Wealth

"That's powerful stuff," Boneparth said. "It's not always putting your money into the latest craze of crypto; it's learning what it's all about."

While many advisors won't recommend clients buy or sell digital currency, Boneparth said investors may come to his practice looking for guidance on existing crypto allocations.

"Some people have amassed quite a bit of money in cryptocurrency," he said. "And it's my job to show them what the risks are, how that concentration and that asset can impact their long-term goals and their portfolio."

Boneparth said it's important to know how owning any particular type of asset may affect your financial goals, especially "volatile assets" like cryptocurrency.

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Despite market volatility, advisor says he's 'bullish' on crypto education. Here's why - CNBC