Crypto has been making a comeback recently, with prices of major cryptocurrencies like Bitcoin (BTC -0.44%) and Ethereum (ETH 0.63%) soaring. After experiencing a long crypto winter, many investors are relieved to see positive momentum in the market.

But others are skeptical that this comeback will last. Famous for its volatility, the crypto sector has proven that it can crash just as quickly as it can climb.

As prices continue to surge, it can be a tempting time to buy. But is it really safe to invest right now? Here's what you need to know.

The future looks promising -- for now

There are countless reasons why crypto is climbing right now.

Part of this growth may be related to the fact that Ethereum recently set a date for its latest update, "The Merge," which will help move it from a proof of work (PoW) protocol to proof of stake (PoS). This is promising news for investors, as a PoS protocol will result in significantly faster transactions, lower costs, and a more energy-efficient network.

Cardano (ADA -5.64%) is also working on its own upgrade, the Vasil hard fork, which will bring a number of improvements to the blockchain. Its release is currently slated for the end of July, and the excitement surrounding the upgrade could help fuel investor optimism -- and result in higher crypto prices.

However, that doesn't necessarily mean the worst is over. Many Americans are bracing themselves for a recession, and tough economic times can sometimes spell trouble for riskier assets like crypto. If stock prices take a turn for the worse, crypto could be hit hard as well.

Also, as a generally volatile investment, it's safe to say that crypto will experience more turbulence in the future. When a downturn will happen or how severe it might be is anyone's guess, but volatility is a normal occurrence when it comes to crypto.

Is it safe to invest right now?

Whether prices are surging or falling, there's not necessarily a bad time to invest in crypto.

It can be intimidating to invest when prices are lower, but it's also the perfect opportunity to invest at a discount. Crypto is an expensive investment, and buying during a downturn can save you a lot of money. If you buy when prices are climbing, it will cost you more, but it can also be less nerve-wracking than investing during a slump.

The best way to gauge whether it's the right time to invest is to consider your financial situation and tolerance for risk.

Money is tight right now for many investors, and not everyone can afford to invest in something as risky as crypto. If you don't have any emergency savings, it's best to focus on that goal first. It's also wise to double-check that the rest of your portfolio is properly diversified, just in case your crypto investments don't pan out.

Next, think about how much risk you can tolerate. Crypto is still speculative right now, and this recent price surge doesn't necessarily mean it will succeed over time. We'll likely see more volatility in the future, and it's wise to only invest in crypto if you're comfortable with high levels of risk.

Crypto prices may be on the rise, but it's still important to invest carefully. It's not the right investment for everyone, and by considering your overall tolerance for risk and volatility, it will be easier to determine whether it's a good fit for you.