If you are an investor in cryptocurrency, then you need to do a thorough research in the market before deciding the type of project to invest, since making the wrong decision can cost you a fortune. It is quite surprising that in the cryptographic market, the riskiest currency is the one that becomes wild in the middle of a bull market.
Explicitly, investors expected to make fortunes with smaller coins when they offered the opportunity to buy a huge amount, but that dream has been extinguished with some of the tokens. This taught a lesson on how to understand the market trend before you even consider it.
It is good to take risks, but it is also very prudent to stay away from high-risk cryptocurrencies.
Let’s look at three high-risk cryptocurrencies for this 2019:
Tether (USDT), Dragonchain (DRGN), Nano (NANO)
It is quite difficult to give a price prediction for the three cryptocurrencies because their trends are not clear. Among the three, Dragonchain presents the greatest risk. With a great success and a big gain in January of last year, the cryptocurrency fell by 80% just after a week or two and remained quite low until the end of 2018.
However, being the idea of the Disney giant and seeing it compared to a relatively small market capitalization that gives it more room to grow, the cryptocurrency can recover, and a great year if 2019 offers the market a positive rebound.
In addition, the three previous cryptocurrencies, like other tokens in the market, continue to deteriorate for a long time when a bearish trend hits them. Sooner or later they become victims of an unstable market with the greatest risk of being left out of the world of cryptographic payments.
The inability to survive the bear market and remain a bit stable is reduced to the lack of users and the adoption rate, which is the key driver of growth.
This is particular for Tether and Nano, which are among the 50 best cryptocurrencies but have lost a lot of traction. Tether has been fighting so many controversies over its legitimacy. Many people would like to put their money or look for popular cryptocurrency services, even if they are not the most effective in that period.
This eventually placed the other cryptocurrencies in a state of stagnation. I think it is advisable to be careful with these three cryptocurrencies because their potential plays at a very high risk.