3 signs to warn you about bad cryptocurrency
It is always difficult to make a choice whether you should or should not buy this specific digital currency. But still there are a few key points that can help you understand from the very start whether you should or should not invest in this cryptocurrency and save you tons of stress and worry. These key points can help you to spot the bad players instantly and that’s what I’m going to share in this article. Here are the 3 signs to warn you about bad cryptocurrency index.
#1. Low volume
Before you spend all your possessions on this or that rare coin, you should apply this method that will help you to find out whether this coin will shoot or not. This method works in 9 cases out of 10.
The website that can help you a lot is this one:
For example, let’s take a look at the CureCoin. It shows very huge growth in terms of the “% change” cryptocurrency index.
But the biggest mistake that you can ever make is to make your judgments basing only on this cryptocurrency index. Let’s take a closer look at this digital coin.
If you look for CureCoin at coinmarketcap.com, you will see that is has a very low capitalization rate, $11 mln. This is only a 2-digit million dollar cryptocurrency which is almost nothing in the crypto market.
To find the best cryptocurrency to invest in you should look at the average volume and how it changes during the time. The average low volume and such rare spikes are the sign that this is not a very good digital currency.
The winning cryptocurrency should have consistent volume. This index shows that the volume is solidified and that the price action it solidified as well.
#2. “Spend-me-on” coins
This is the name for the coins that are designed to be spent on some specific things, like food or insurance, or any other thing, even marijuana. There is only about a dozen of such coins in the market. And if you invest into such coins you may get into huge trouble, as they are absolute scams.
Let’s take a look at the PotCoin that is designed to support marijuana industry. It’s market capitalization is very low.
Their website claims that the coin is designed to support marijuana industry, and this is a sign of a bad coin.
Why should you buy this specific little-known coin to support the industry when you can buy Bitcoin for the same purposes for example? This is not a unique proposition.
If you see that a specific digital coin is used as some piece of technology to run the system, only then it would be wise to invest in it.
#3. Too small team
Also try to avoid digital currencies that have a very small team.
Let’s look at Veritaseum digital coin, for example. On their website you can see that they have a very small team, only 3 people.
Why should it be an issue?
These digital currencies talk about ambitious projects on their websites. And their developers might even be slowly moving towards their purposes, they may have clear missions. But most likely they are going to lose because they simply won’t have enough people to fulfill these purposes.
Veritaseum mission is to to completely change the finance sector. They want to implement the blockchain technology into the finance sector and thus get rid of the corruption. Let’s wish them good luck, it’s a very good idea, but it’s it’s impossible to reach with just one developer.
The Veritaseum price chart will confirm this assumption. As you can see, the price is slowly going down.
There may be a very good developer in any small team, there might even be a couple of experienced business developers who have already succeeded in other projects. But the size of the team should match the size of the goals they set. Keep it in mind, when you decide to purchase this or another digital currency.
Follow these 3 rules and they will help you to cut off 90% of the trash. Look for the signs and they will help you to find out real winners.
