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Top 3 Risky Coins to Avoid Investing in 2019

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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.

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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.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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