All Cryptocurrencies Are a Good Investment… Or Are They? What to Avoid?
Nowadays, no matter where you go, you may encounter people who talk about the hottest trends or news in the cryptocurrency world. It makes sense as millions of people and businesses worldwide are in this industry – both newbies and advanced. With high hopes of earning from this field, traders and investors worldwide are not threatened by the market’s unstable behaviour, which could affect their hard-earned funds. Well, you can’t blame them. Given the long list of crypto billionaires, it’s only natural that people flock to this field to earn passive income. Currently, there are over 20,000 thousands of cryptocurrencies for traders and investors to choose from. While most of these cryptos are suitable investments, there are some that you should avoid for different reasons. Read on to learn more about these cryptocurrencies.
Before we dive into the cryptocurrencies you should avoid, let’s briefly discuss cryptos in general for beginners in crypto. You have probably heard of Bitcoin and cryptocurrency in the news or read it somewhere. Bitcoin is so popular because it’s the first cryptocurrency ever to be developed. Established by Satoshi Nakamoto in 2009, Bitcoin paved the way for thousands of other cryptocurrencies to be known.
If you’re a newbie in crypto looking for your first crypto to purchase, the most important tip that you should know is to choose your cryptos wisely. All cryptos suffer from the market’s volatility, but they have advantages that can help your career. While some platforms promise high profits, the Bitcoin Profit app seems to take it seriously by increasing the chances of earning while handling volatility well. In addition, this platform connects you with trusted brokers who have access to high-end tools for a smooth trading experience.
Cryptocurrency has promising benefits and various ways and opportunities to make some funds, so it’s no surprise why millions are instantly hooked on this field. Over the years, its popularity has reached worldwide, and now, more countries are slowly accepting cryptocurrencies as payment methods. It’s also safe to point out that its unpredictable status and volatility can hinder reaching your crypto goals.
List of Cryptocurrencies to Avoid
As mentioned, cryptocurrencies have advantages that benefit your career – only if you choose the right ones. There are different reasons why you must avoid specific cryptos; it can be because experts predict some cryptocurrencies may lose their value in the following months or years and that you should steer clear of them. Perhaps, they are near bankruptcy, and you should not take that risk. Check out the list of cryptocurrencies that you must avoid investing in.
1. Shiba Inu
Shiba Inu is a type of dogecoin that instantly became popular after gaining support from Elon Musk through a tweet. Last year, this coin delivered a historic increase in its value, reaching 121,000,000% in less than a year. Experts believe its growth was driven by the acceptance of many platforms for this coin and the hype social media gave. However, this coin has three fundamental flaws, which are enough reasons for you to avoid it.
First, Shiba Inu has no competitive advantages compared to other cryptos – it’s just an ERC-20 token built on the Ethereum blockchain. Second, even though Shiba constantly being part of the most prominent digital currencies by market cap, it lacks real-world utility as it doesn’t have merchants willing to accept it. Lastly, research and history show that life-altering increases would lead to a considerable fall.
2. Bitcoin Cash
Bitcoin’s hard fork in 2017 gave birth to Bitcoin Cash – a crypto to solve some of Bitcoin’s drawbacks, such as high fees and slow speeds. However, due to the innovations in blockchain technology. Bitcoin Cash has become obsolete. Block size is one of the main differences between this crypto and Bitcoin. Bitcoin Cash’s block sizes are 32 times bigger than Bitcoin’s.
You might think Bitcoin Cash has an advantage, but it’s not. New technology developed in the past years allowed Bitcoin to improve and be as efficient as Bitcoin Cash without putting any security or decentralisation at risk. With Bitcoin’s Lightning Network, Bitcoin can now fulfil faster and cheaper.
For a crypto coin that’s not even part of the top 200 coins in the market cap, Hex is undoubtedly gaining a lot of social media attention. Thanks to its charismatic founder and extensive advertising strategies that promise investors can make profits by holding this crypto coin, Hex has caught traders’ and investors’ attention. The Hex website claimed that it’s like Bitcoin but better.
Hex traders send Ethereum to a wallet address and receive Hex tokens, promising an average return of 38% yearly. However, the Hex tokens you receive may just be created by the platform whenever they want and are inflationary, allotting a fraction on utility or revenue generation.
Despite rising more than 10% of its value recently, Dogecoin’s price is still below its highest point of $0.74 last May 2021. Dogecoin was created as a fun and casual competitor to the largest crypto by market cap, Bitcoin. However, while Bitcoin is slowly becoming accepted as a legitimate form of value and has the most extended operating history with the growing number of financial firms supporting it, Dogecoin’s primary use has been as a tipping mechanism on sites like Twitter and Reddit.
Among more than 20,000 cryptos in the market, Dogecoin does not possess any natural competitive edge. In addition to why you should avoid this, DOGE is meant to be an inflating digital asset, which means there’s no cap on the supply of tokens. It seems that Dogecoin’s increase in value is only caused by two of its most prominent supporter, Elon Musk and Mark Cuban.
Learning about the thousands of cryptocurrencies you can invest in can be overwhelming. But, as hassle as it can be, it’s essential that you research the top cryptocurrencies to buy and which ones to avoid. Understanding why you should avoid specific cryptocurrencies can save your digital assets and, ultimately, your career. As the first step before entering the market and performing transactions, it’s crucial to allot time to know which cryptocurrencies have potential and which ones don’t.Follow us on social media