Investing constitutes risks in any forms; whether in stocks, bonds, indexes and even for cryptocurrencies. Before investing into something quite relevant and will make us profitable we need to know the project itself. This is by means of doing some research, contacting the team, verifying their underlying projects, idenfying the extent of their proposed roadmaps and more. However, it is still not the safest way to know that a certain project has its capabilities to sustain further. Knowing that every investment has risks, we opt not to invest. As they said, great risk comes with great rewards. Indeed, but we need to put some threshold whether that amount had invested is something we can afford to lose.
Many of us were well known the Coinmarketcap from where we receive all cryptocurrency like coins and tokens details like on which exchange they listed, what is the 24-hour treading volume, or which platform they based on, etc.These days many new crypto coins and tokens was introducing and listing on many exchanges and It makes a very difficult decision for the investor to choose which coins or tokens should they invest to make some good profit.Many of the new cryptocurrency was makes a good pump in their stating days and after they dump in a very dramatic way.This cause a big loss to the investors and the trust in these types to new coins and tokens was finished.So, the main question is that Is it risky to invest in new crypto coins/tokens? or it is good for a very certain time of investment?
For some people who already have experience, investing in new coins or tokens is high risk because there have been many incidents of scam projects. If the new coins are listed on the exchanger and have a large daily transaction volume, I think the risk is getting smaller and can be used as an investment for short term because we don't know the real market cap value
Not really, this is what I meant of doing research... it didn`t based solely on one reference. Evaluate whether the volume stipulated in the exchange is not hype because most of them are making volumes out of thin air. That is why there are reports especially during Vaneck, ETF delayed approval from SEC, one question ask about market manipulation and how volume didn`t equate on the actual trading volumes. Of course this will show to the people to invest on their scam projects. So, the real thing is refrain from ponzi-like projects. And other lots I`ve mentioned above.