Factors to Consider Before Trading on High Volatile Altcoins

The number of cryptocurrencies that failed their investors is on the rise. One recent example was the market implosion of Terra’s native token (LUNA) and stablecoin TerraUSD (UST). This calls for caution for investors who are buying such high volatile altcoins or tokens. Despite the usual direction to Do Your Own Research (DYOR), some investors are always eager to jump into the market and purchase such tokens. This is not advisable. Some of the factors that must be considered before trading such high volatile altcoins include: The team The exchanges that list the tokens The liquidity level The real-life application The Team The team is as important as the token itself. Some projects are launched by fake teams. They aim to get added to top cryptocurrency monitoring platforms, such as CoinMarketCap, CoinGecko, and Nomics. Consequently, these unverified teams pump liquidity into them. After the token has liquidity, you must check the profiles of the listed team members and advisors on professional platforms like LinkedIn. If the listed team members have not posted about the project on their profiles or job histories, the project could be a scam. It is wise to check recommendations from other users with whom they have worked. You should also keep an eye on the date because a new account may have been registered since the last time you checked. The career histories of team members show that they are capable of solving any unsolvabl...