Beware of Risky Altcoins: Safeguard Your Investments Now 🫂
Did you know that 98% of altcoins are unlikely to experience significant growth? For instance, an investment of $10,000 in $AXS in November 2021 would now be worth only $382.5. Here’s a guide to help you avoid risky tokens and make smarter investment choices.
✔️Key Factors to Consider Before Investing:
- Market Cap (MC)
- Fully Diluted Valuation (FDV)
- Future Unlocks
- Token Demand
- Sector (Narrative)
Understanding these factors can help you identify promising tokens and avoid financial losses.
✅️Types of Altcoins to Avoid:
1. Outdated and Overvalued Projects: These often lack real technology and lose value over time.
2. Projects Tied to Past Narratives: High FDV, low market cap, and constant selling pressure make these tokens poor investments.
3. Tokens with Artificially Inflated Prices: Often controlled by teams or VCs, leading to manipulated valuations.
🚨 Top 8 Risky Tokens to Avoid:
1. XMR (Monero): Known for anonymity but has been stagnant since 2022 and faces potential bans.
2. FLOW: Initially promising for Web3 and NFTs, but interest has waned.
3. XRP (Ripple): Overhyped, unnecessary fork of BTC with an inflated valuation.
4. ADA (Cardano): Despite a loyal community, it lacks substantial progress.
5. AXS (Axie Infinity): The hype around play-to-earn tokens has faded.
6. DYDX: Suffering from constant selling pressure due to token unlocks.
7. WLD (Worldcoin): Controlled supply with insiders offloading it, making it risky.
8. BCH (Bitcoin Cash): Essentially a redundant fork of Bitcoin.
To protect your investments, learn to distinguish between junk and gems, and avoid these tokens that are likely to fail. This is just my personal opinion, so always do your own research.
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