Before Trading On High Volatility Altcoins, Take These Into Account
A growing number of altcoins have disappointed their investors. The market collapse of Terra’s native token (LUNA) and stablecoin TerraUSD is one recent instance (UST). Investors who purchase such highly volatile altcoins or tokens should proceed with caution.
Even though it’s generally advised to “Do Your Own Research” some investors are always quick to enter the market and buy these tokens. This is not suggested.
The group
As significant as the token itself is the team. A few projects are started by phony teams. They seek inclusion on prominent cryptocurrency monitoring websites like CoinCu, CoinMarketCap, CoinGecko, and Nomics. As a result, these unreliable teams inject money into them. You must review the mentioned team members’ and advisers’ profiles on business networking sites like LinkedIn once the token has liquidity.
The project might be a hoax if the listed team members haven’t mentioned it on their profiles or work histories. Verify endorsements from clients they have previously worked with. Additionally, pay attention to the date because after your last check, a new account might have been created. The career histories of team members show that they are capable of solving any unsolvable challenges.
The exchanges that list altcoins
Tokens with falsified prices and transaction volumes are occasionally listed on exchanges. It is essential to avoid purchasing such tokens if such exchanges have a history of causing investors to lose money on highly volatile projects. The risk is minimized if the token is listed on reputable exchanges with a history of supporting user security, like Binance or WazirX in India.
Level of liquidity
Trading cryptocurrencies with significant volatility that are listed on decentralized exchanges might not be a good idea. Low liquidity characterizes these cryptocurrencies. The developers or token creators might encrypt user cash in such a way that, after reaping substantial profits from investors, they would stop allowing sales. Only purchase orders will be accepted. Trading low-liquidity projects might not be a good idea, especially if the project’s volatility is significant.
Application in real life
It is not appropriate to generate and list tokens on the market just for the sake of listing. Due to cryptocurrency’s issues with volatility, some governments have outlawed it. Despite dips, real-world application tokens will eventually climb.
Despite multiple corrections, investors remain optimistic about bitcoin because it can be used as a store of value and permits peer-to-peer transactions. High volatility altcoins need a strategy for breaking into the mainstream in order to gain more adoption. This decision will lessen turbulence.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
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Before Trading On High Volatility Altcoins, Take These Into Account
A growing number of altcoins have disappointed their investors. The market collapse of Terra’s native token (LUNA) and stablecoin TerraUSD is one recent instance (UST). Investors who purchase such highly volatile altcoins or tokens should proceed with caution.
Even though it’s generally advised to “Do Your Own Research” some investors are always quick to enter the market and buy these tokens. This is not suggested.
The group
As significant as the token itself is the team. A few projects are started by phony teams. They seek inclusion on prominent cryptocurrency monitoring websites like CoinCu, CoinMarketCap, CoinGecko, and Nomics. As a result, these unreliable teams inject money into them. You must review the mentioned team members’ and advisers’ profiles on business networking sites like LinkedIn once the token has liquidity.
The project might be a hoax if the listed team members haven’t mentioned it on their profiles or work histories. Verify endorsements from clients they have previously worked with. Additionally, pay attention to the date because after your last check, a new account might have been created. The career histories of team members show that they are capable of solving any unsolvable challenges.
The exchanges that list altcoins
Tokens with falsified prices and transaction volumes are occasionally listed on exchanges. It is essential to avoid purchasing such tokens if such exchanges have a history of causing investors to lose money on highly volatile projects. The risk is minimized if the token is listed on reputable exchanges with a history of supporting user security, like Binance or WazirX in India.
Level of liquidity
Trading cryptocurrencies with significant volatility that are listed on decentralized exchanges might not be a good idea. Low liquidity characterizes these cryptocurrencies. The developers or token creators might encrypt user cash in such a way that, after reaping substantial profits from investors, they would stop allowing sales. Only purchase orders will be accepted. Trading low-liquidity projects might not be a good idea, especially if the project’s volatility is significant.
Application in real life
It is not appropriate to generate and list tokens on the market just for the sake of listing. Due to cryptocurrency’s issues with volatility, some governments have outlawed it. Despite dips, real-world application tokens will eventually climb.
Despite multiple corrections, investors remain optimistic about bitcoin because it can be used as a store of value and permits peer-to-peer transactions. High volatility altcoins need a strategy for breaking into the mainstream in order to gain more adoption. This decision will lessen turbulence.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
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