Investing in cryptocurrencies is still a risky way to handle your money. Despite all the progress that cryptos were able to make since they exploded in mid-2017, they remain just as volatile as ever. The bear market of 2018 damaged a lot of investors who joined the trend lately and were forced to buy the coins at higher prices.
However, if your intention is to HODL and waits for the more prosperous times, then cryptocurrencies are probably the best way to go about it.
With that being said, there is still one important issue, which revolves around which coins you are going to invest in. Obviously, not every coin is the same, and even if all cryptocurrencies are risky, some of them are much riskier investments than others. The risk you are taking is somewhat softened if you choose one of the top coins. That way, you will at least have a confirmation that those are real coins, and not scams or dying projects.
However, even then, you must be careful as some high-risk projects managed to find their way up and join the proper ones. Here are three such ricksy coins, which you might want to avoid if your goal is to make a good investment.
1. Tether (USDT)
Tether emerged as the ‘savior’ of investors when the crypto winter first struck, and investors had no choice but to watch their funds decline. The stablecoin has been around for a while at that point, but stablecoins were not nearly as popular or accepted as they are today.
Tether came as a stable investment due to its connection to USD, with each coin being backed by $1. That also allowed it to keep its price stable, and bypass the volatility that has affected nearly all other coins. However, Tether found itself in quite a controversy after it refused to provide insight into its bank account. This has led many to believe that the coin doesn’t have enough USD to cover all of its circulating supply.
Tether has been finding ways to avoid audits since it came under the spotlight, and the uncertainty makes it a very risky investment. If these fears turn out to be true, investors who buy USDT might find themselves in possession of worthless coins.
2. Verge (XVG)
Verge was a popular privacy coin that seemed to be on the right path to be one of the top cryptocurrencies. However, the coin suffered a massive blow around a year ago when hackers discovered flaws in its mining code. This has led to a number of attacks on Verge’s blockchain, the abuse of its mining system, and theft of massive amounts of coins.
Verge suffered four attacks in total, and after each one, its developers claimed they fixed the issue, only for another attack to prove them wrong. Since then, many have decided to abandon it in favor of Monero, Zcash, and other privacy coins. Lately, Verge developers started considering shifting towards PoS, but there is no guarantee that the coin will ever awaken the interest again, or regain the same quality it was once thought to have. As a very risky investment, we recommend skipping this one.
3. Dogecoin (DOGE)
The last coin we would recommend avoiding is Dogecoin (DOGE). DOGE came to be as a meme back in 2013, but against all odds, it got the interest of many investors. Even to this day, DOGE sits higher than anyone would have expected, currently ranked as 28th largest cryptocurrency by market cap. So, why should you avoid investing in DOGE?
The answer is simple — the coin has no total market cap. In other words, it can be mined infinitely. The coin’s circulating supply already exceeds $118.8 billion tokens, and the supply is only going to get bigger, and bigger. More transactions mean more blocks, and the more blocks, the more mined coins, and this infinite loop will prevent DOGE from ever reaching high prices and gaining any large value.
Even if the project starts burning its coins, it would have to hold massive token burns all the time in order to be able to cope. And, since its creator decided to distance himself from the project, there was a large lack of any true leadership. DOGE continues to live on, but only as a meme that refuses to die. It is a popular and interesting coin, but it is highly unlikely that it has a future.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Should Crypto Projects Devote Resources to Community Growth and Marketing?
2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for. While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory. When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion. But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.
I mention both of the above projects as they have each taken slightly different paths to achieve greatness. Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion. Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special. Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.
Cryptocurrency vs. Blockchain Technology
It’s important to make a distinction between blockchain technology and cryptocurrency. Although they are often used interchangeably, they are different. Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…
XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.
As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021.
“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.
He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”
Mr. Yamagata has been…