### Beware of Risky Altcoins: Protect Your Investments
Did you know that 98% of altcoins are unlikely to see significant growth? For instance, if you had invested $10,000 in $AXS in November 2021, it would now be worth just $382.5. Here’s a guide to help you avoid risky tokens and make smarter investments.
#### Key Factors to Analyze 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 **Outdated and Overvalued Projects:** These lack real technology and tend to lose value over time.
2. **Projects Tied to Past Narratives:** High FDV, low market cap, and constant selling pressure make these 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 declined.
3. **XRP (Ripple):** Overhyped and an unnecessary fork of BTC with an inflated valuation.
4. **ADA (Cardano):** Has a loyal community but lacks significant progress.
5. **AXS (Axie Infinity):** The play-to-earn token hype has faded.
6. **DYDX:** Experiences constant selling pressure due to token unlocks.
7. **WLD (Worldcoin):** Controlled supply and insider sell-offs make it risky.
8. **BCH (Bitcoin Cash):** Essentially a redundant fork of Bitcoin.
