In a volatile cryptocurrency market, it is important to spot trades and avoid potential risks, which are often overvalued and overpriced tokens with impressive profit histories.
Even as the cryptocurrency market recovers from the 2022 crash, some currencies will still face challenges. Many pump and dump schemes are still common and investors should be cautious. Of course, many high value tokens will continue to do well, but smaller tokens may struggle in a volatile and uncertain environment. With that in mind, let's look at three cryptocurrencies that I believe fall into the most speculative category to buy now or ever.
Dogecoin (DOGE-USD)
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Dogecoin (DOGE-USD) is one of the first and most popular tokens in the cryptocurrency space. Dogecoin was created as a joke and its value is skyrocketing. This made many investors and speculators rich during the recent bull run. Dogecoin rose in value during the 2017 ICO bubble, then briefly fell 10x. In January 2021, due in part to Elon Musk's tweets, it rebounded to an all-time high of $73.4 billion.
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Of course, since Dogecoin's value is largely based on the strength of memes and its community, investors expect natural risks when investing in DOGE. These risks are exacerbated by the fact that roughly 95 wallet addresses hold nearly two-thirds of all DOGE tokens. If some accounts start selling their shares in large quantities, the majority of investors, representing the remaining 33% of the offering, may struggle.
Overall, Dogecoin is a project with a certain growth rate, which may prompt investors to consider this token as an investment. In my opinion, Dogecoin remains a speculative way to make a bet in the digital asset space. No thanks.
Climax
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ApeX (APEX-USD) is the native token of ApeX, a high-risk cryptocurrency exchange . As described by Coinmarketcap , the ApeX protocol is a decentralized, non-custodial, permissionless, censorship-resistant perpetual derivative protocol that enables the launch of a perpetual trading market for any token pair.
This sounds great because the project focuses on Web3 and decentralized finance ( DeFi ) business pairs. Anyone looking for a decentralized exchange to trade digital assets might want a solution like this. However, projects that are less popular than the competition carry risks; Many experts point out the dangers of addiction.
ApeX allows you to trade a limited range of cryptocurrencies with low fees while providing high profit options. The platform is powered by TradingView, just like its competitors. No approval is required to start a business. It's as simple as linking your crypto wallet like Metamask to your ApeX account. There are no educational resources, so users must already have some business knowledge or look elsewhere.
In my opinion, there are too many red flags with this project to consider. This is something I can continue to monitor to see how much it goes down. But, in my opinion, this is a project not worth investing in.
Shiba Inu (SHIB-USD)
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Before investing in Shiba Inu (SHIB-USD) , consider its origin as a joke (similar to Dogecoin). However, unlike Dogecoin, I believe that Shiba Inu lacks many of the utilities that Dogecoin has built over the years. This makes the first meme symbol king the youngest (and most speculative/risky).
Note that the volatility of Shiba Inu prices should worry investors. SHIB shares have fallen more than 40 percent in the past six months. Elon Musk's tweets about his dog appear to be the main driver of SHIB's price. At a fraction of a cent, its value is difficult to estimate. Of course, I wouldn't want to invest in a company whose resources are tied to the whims of an assertive and delusional CEO.
The launch of the Shiba Inu Shibarium on August 16 did not live up to expectations , and the price of SHIB fell. This happened despite months of anticipation and the introduction of a new consensus mechanism called Proof of Stake (PoP). The effect of Shibarium on the SHIB chart after one day was minimal. Therefore, even Shiba Inu's last attempt to create value failed.
If long-term investors want to preserve their capital, you should stay away from this project.
At the time of publication, Chris MacDonald has no position, directly or indirectly, in any of the securities mentioned in this article. The opinions expressed in this article are those of the author in accordance with InvestorPlace.com's publication guidelines.
Chris MacDonald's passion for investing has led him to earn an MBA in Finance and hold various leadership positions in corporate finance and venture capital over the past 15 years. His previous experience as a financial analyst, combined with his enthusiasm for undervalued growth opportunities, help create a sound long-term investment perspective.
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