While cryptocurrencies have given many people a way to save and invest outside of the fiat monetary system over the past few months and years, many investors have also lost a lot of money. The risk is different for every crypto project. Let’s mention and talk about the top 3 risky cryptos.
Risky Cryptos: How to Spot them?
Since there are numerous elements that influence the dangers, it is difficult to identify which cryptocurrencies are the most harmful. For example, some of the elements to consider are:
The Cryptos we Considered “Risky”
Of course, there are many small projects, ICOs, meme coins, and other projects that can be considered extremely risky and dangerous. However, in this article, we focus on the top cryptocurrencies and list the projects that can be dangerous for your money.
Top 3 Risky Cryptos
Without further ado, let’s address the top 3 risky cryptos from the top 30 by market capitalization.
1. Ripple (XRP)
The XRP has many fans and the number of transactions over the network is much higher than the number of transactions in Bitcoin. Nevertheless, the legal dispute with the SEC is still ongoing. If Ripple loses the lawsuit, the XRP price could actually implode and Ripple Labs would face severe penalties. Confidence in the XRP coin could be massively damaged.
2.Solana (SOL)
The Solana network was notorious for multiple network outages during the 2021 bull market. These falls continued into the 2022 bear market, ensuring that the year’s losses were particularly large compared to other altcoins.
Then it became known that there were ties to FTX, which went bankrupt in November 2022. This caused another price implosion. That is why Solana is probably one of the dangerous cryptocurrencies.
3. Avalanche (AVAX)
Increasing scalability was a big topic on the crypto market in the 2021 bull market. In addition to Solana, Avalanche was a project that experienced great hype due to its high scalability.
In the last few days, the Avalanche Blockchain has had to deal with several network failures. Patterns similar to those of Solana can now be seen there as well. Dangerous cryptocurrencies such as Solana or Avalanche saw massive hype 1 to 2 years ago, but are now showing their weaknesses.
Should I still invest in dangerous cryptocurrencies?
Although these are risky cryptos, you should not necessarily keep your hands off them. These blockchains definitely have their technical unique selling points and can have a use. Nevertheless, you should see them as purely speculative investments and expect that you could lose a lot of money quickly. Strong price increases are not excluded, however.
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