Not every glittering object is gold. When it comes to a new-age investment like cryptocurrency, investors need to be cautious in choosing digital holdings to avoid loss. Since not every crypto coin has the same features and uses, some digital currencies are near extinction. This post includes some crypto to avoid buying or that may not be worth being a part of your crypto investment portfolio.
7 Crypto to Avoid Buying
Monero
Like the first cryptocurrency, privacy coins like Monero make one of the most raving topics for investors these days. Digital currency aims to help users make their trading anonymous and keep them completely secret. Monero also aims to go wholly decentralized. It enables users to complete transactions without trusting any user on the Monero network. However, Monero is one of the most frequently used privacy coins to commit crimes like money laundering. It tops our list of crypto to avoid buying. It is wise for investors with a clean image to steer clear of this digital currency that has been criminals’ first choice.
Ethereum Classic
This cryptocurrency comprises several legitimate functions. The Ethereum Classic network has decentralized applications that allow users to employ bridges to transfer crypto holdings to other chains, use coins in real-world instances, and validate transactions efficiently.
However, Ethereum Classic took five years to grow but still could not make it. While ETH is topping the crypto market, Ethereum Classic is nothing more than a pump-and-dump product. The present scenario does not make a perfect match for your cryptocurrency investment portfolio.
BitTorrent
While BitTorrent entered the crypto market with all the features, it soon lost its relevance after Tron introduced a faster and easier process for file sharing. The instance of acquisition of the BitTorrent by the Tron Foundation is also well known. BitTorrent obtained a blockchain content-sharing platform known as DLive, which allows creators to monetize content. They can do it without the need to share it with the other computers on the network. As cryptocurrency users go with other platforms with more convenient and robust features, BitTorrent may experience a decline in the number of users. It will lead to fewer transactions, which may de-incentivize BitTorrent staking and make its primary function obsolete.
Shiba Inu
The meme tokens emerged with a promise to deliver a new sphere of DeFi fame, but the bark of Shiba Inu has stopped all the giggles of its holders. Shiba Inu is a component of a robust token ecosystem, although there is nothing much to do with those tokens. You can use Shiba Inu coins for farming, staking, and voting, but you cannot find it with an end goal to increase value. Cryptocurrency experts believe that investors need to take a step to take whatever gains they own and run away from this virtual coin before it wholly disappears from the crypto market.
Bitcoin Gold
Bitcoin Gold developers attempted to spawn a digital coin to make BTC uses and trading a more user-friendly experience for everyone. They have promised that the digital currency would serve as a network to experiment and allow users to create products by working with a protocol similar to BTC’s.
The crashing instances of Ethereum and Bitcoin also led to the tank of these so-called discount plays. While both cryptocurrencies have returned to their momentum, Bitcoin Gold is not seemingly getting off the ground and creating its identity. Therefore, cryptocurrency investors need to think twice before investing in Bitcoin Gold this year.
Stellar Lumens
The cryptocurrency and blockchain of Stellar Lumens have a remarkable case. The blockchain allows cryptocurrency users to send funds anywhere anytime. The digital currency has the same goal as Ripple which is six times more successful than Stellar Lumens and easier to use. Stellar targets unbanked users, while XRP prefers to work with worldwide banks for money transfers among customers at affordable rates. While Stellar is likely to have a bright future, it may not be a choice for Day Traders.
Safemoon
Like Shiba Inu, Safemoon is a meme coin, though it couldn’t meet its promises. It best exemplifies the idea of how getting a product first matters. Several individuals believed in the promises of Safemoon and invested in the token, although it is now plummeting. The present scenario can be an eye-opener for investors who do not want to fall for grandiosity.