The difference between junk coins and high-quality coins, avoid pitfalls on the investment road! ! ! !
So, what is a junk coin, and which altcoins can be called excellent?
Characteristics of junk coins:
1. Coins with continuous inflation and additional issuance: For example, Dogecoin (DOGE) is a representative of this type. Due to the continuous increase in issuance, the value of this type of coin is continuously diluted, and it is difficult for investors to obtain long-term benefits from it.
2. Coins with large issuance but small circulation: Some coins have an issuance volume of billions or even tens of billions, but the actual circulation volume is far less than this number. This means that there are still a large number of coins waiting to be released in the "reservoir", which may have a further dilution effect on the coin price. For example, arb, dym, portal, manta, sei, sui and other coins have such problems.
Characteristics of high-quality altcoins:
1. Deflation coins: such as bnb, floki, shib, etc. The total amount of such coins is limited and may even decrease over time, which helps to maintain the stability or growth of the currency value.
2. Fully circulated coins: such as pepe, bome, people, not, wif, etc. The issuance volume of these coins is similar to the circulation volume, and the market supply and demand relationship is more real, reducing the potential risk of price dilution.
Ranking of the quality level of altcoins:
1. Deflation coins: ranked first, because their total amount is limited and may even decrease, which helps to maintain the currency value. Fully circulated coins: second, the market supply and demand relationship is real, and the price is relatively stable.
2. Reservoir coins: higher risk, because a large number of uncirculated coins may dilute the price. Inflation coins: the riskiest, continuous issuance leads to continuous dilution of the currency value.
However, the investment market is always full of variables. Even high-quality coins may be affected by market fluctuations, policy changes and other factors. Therefore, when making decisions, investors need to consider multiple factors and act cautiously.
