Did you know 98% of altcoins are incapable of growing? Investing 10,000 USD in $AXS in November 2021 would leave you with only 382.5 USD today. Here's a guide on how to avoid risky tokens and invest smarter.
Key factors to analyze before investing:
- Market capitalization (MC)
- Fully diluted pricing (FDV)
- Unlock the future
- Token demand
- Field (Narration)
Understanding these aspects can help identify promising tokens and avoid financial losses.
Altcoins to avoid:
1. Outdated and overpriced projects: These projects often lack real technology and lose value over time.
2. Projects tied to past stories: High FDV, low market capitalization, and constant selling pressure make these token investments ineffective.
3. Tokens with artificially inflated prices: Controlled by groups or VCs, leading to manipulated valuations.
Top 8 risky tokens to avoid:
1. XMR (Monero): Known for its anonymity but stagnant since 2022 and facing potential bans.
2. FLOW: Initially promising for Web3 and NFTs, but interest has waned.
3. XRP (Ripple): Excessive, unnecessary BTC fork with inflated valuation.
4. ADA (Cardano): Loyal community but lacks significant progress.
5. AXS (Axie Infinity): The hype around the play-to-earn token has faded.
6. DYDX: Under constant selling pressure due to token unlock.
7. WLD (Worldcoin): Controlled supply and insider offloading make it risky.
8. BCH (Bitcoin Cash): Basically a backup fork of Bitcoin.
To protect your investment, distinguish between junk and gems, and avoid these tokens at risk of failure. This is just my personal opinion, so always do your own research.
