When you are thinking of investing in crypto coins should you just go ahead with any crypto asset that catches your fancy? You definitely should not because many of these cryptocurrencies are high-risk crypto assets. It is important to do a lot of research on the type of project you are going to invest in as making an incorrect choice will burn a hole in your pocket.
Investors were optimistic about earning good profits from the smaller crypto coins but, for many, this dream died as many of the coins vanished. This was a rude shock and made investors realize the importance of researching market trends before jumping into the deeper side. While taking risks is part of crypto trading, it is prudent to avoid the high-risk crypto assets. However, the invention of automated trading bots such as bitcoin trader app has brought in profits to even small time investors and novice. Some of the high-risk cryptocurrencies are as follows:
- Dragonchain is one of the riskiest crypto assets currently. Although it experienced major highs earlier the crypto asset fell almost 80% within a couple of weeks and since then has continued to be low. It is a product of Disney and has a low market cap with scope to expand in the future. So, one can be optimistic that the coin may bounce back soon.
- Tether has been one of the coins like the Dragonchain and Nano that keeps going low whenever downtrends hit them. These coins are victims of unstable markets and are likely to be avoided. They cannot survive in the bearish market and users have therefore not adopted these. This lack of adoption has been the biggest roadblock in their growth. Both Nano and Tether have lost out heavily amongst the new cryptocurrencies. Since there are many controversies centering on Tether’s legitimacy, people are keener to invest money into popular crypto coins, even if these have not been doing that well. This trend has made other coins stagnate and these are therefore likely to be high-risk investments.
- Binance Coin has started off very well making it an excellent option for the crypto investors. However, this was followed by a chain of new events in its ecosystem and prices began to be affected by transactional mining. This means token burning in order to support demand growth. Moreover, Binance’s announcement to ban US customers from Binance Coin trading has not gone down well and led to its price fall.
- EOS had been one of the leading performers in 2019 but this crypto asset underwent much negative coverage in recent times.
- Tron has many potential investors even though it allegedly copied Ethereum’s whitepaper. Its ecosystem is far inferior to that of the Ethereum and the coin is in a nascent stage; so predicting future price movements may be hard. It depends on whether the Tron CEO can keep up his promises.
- IOTA had given impressive returns to its investors but this is bet for long-term growth.
These are some of the crypto coins that you should be wary of; it is better to stay away from these high-risk investments when you starting off or you are not keen to invest in coins that do not have a history of stability and reliability.