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According to billionaire Warren Buffett, the first rule of investing is “don’t lose money”. In this sense, knowing what not to invest in is as or more important than choosing the best investments.
Four cryptocurrencies not to invest for the long term
However, choosing where not to invest can be difficult in a scenario where shares of failed companies and dog cryptocurrencies have experienced strong appreciation. But even in these cases, the risk of losses is still much greater.
For analyst Mike Ermolaev, head of PR at ChangeNOW, the market’s future in the short term is very uncertain. That’s why he points out four cryptocurrencies that are currently cheap, but that are not good opportunities for the long term.
Glitzkoin aims to create a global exchange to unite cryptocurrencies and diamond trading, while GTN is the token that powers this ecosystem.
Since then, the price of GTN has dropped precipitously and hit 80% low. The token shows no signs of recovery. The team’s lack of punctuality in project delivery and high volatility are risk factors.
‘The founders of the project claimed that they would launch the trading platform from the inception, but this has not happened until now. The launch is slated for 2022, according to the website. Time will tell if the deadline will be met or postponed again. Because their price swings are extreme, even for cryptocurrencies, like 1000% highs and lows in a few hours, I would recommend staying away from that.”
Victoria VR (VR)
It is undeniable that Metaverse tokens have emerged as one of the most profitable markets of 2021, but not all that glitters in this market is gold. In fact, some projects sound more like fools’ gold – which is the case with VR.
Its price has dropped more than 80% since its all-time high. Unlike GNT, Ermolaev shows a little more confidence in this project. However, the project has yet to prove itself as viable.
“All in all, it still appears to be a promising token and the drop is caused by severe market conditions in general and not its failure as a project. But it still needs to show if it’s just a hype or if it really has value”, he said.
This network was founded in 2018 and provides decentralized databases, file storage, computing, and a decentralized identity framework (DID).
Furthermore, it provides support for big blockchains like ETH, Polkadot, Cosmos and others. The ALEPH token, in turn, is used to staking or paid as a reward to network users.
The project has a growing community on Twitter, where it has 53,180 followers, so the project is gaining popularity. However, Ermolaev believes that this may not be the best time to buy the token.
The last project on the list is BLOCKv, a protocol focused on developers working with blockchain. Its token, VEE, reached highs in November, but had a sharp drop.
That is, there was a loss of more than 90% in four months, indicating a strong downtrend. This is precisely the factor that led the analyst to recommend that investors stay out of this token.
“Although the project seems to have potential, the token is in a huge downward spiral, which represents a market alert”, he concludes.