3 Cryptocurrencies that Pose Risks to Your Portfolio
Cryptocurrencies have seen a resurgence in 2021, with Bitcoin and Ethereum experiencing significant price increases. Investor sentiment has improved as risk appetite has grown and the US Federal Reserve is expected to end interest rate hikes soon. The prospect of spot Bitcoin exchange-traded funds (ETFs) has also generated excitement, potentially transforming the crypto market. Amidst this positive backdrop, investors are not considering which cryptos to sell.
However, not all cryptocurrencies are equal, and there are some that investors should avoid. The article highlights three cryptocurrencies that should be sold to protect portfolios: Dogecoin, Pepe Coin, and Bitcoin Gold.
Dogecoin, originally created as a joke and lacking any functional purpose, continues to attract investors despite its flaws. The cryptocurrency has periodically spiked to high levels but has ultimately collapsed. Its instability makes it an unsuitable investment.
Pepe Coin, another meme token featuring a cartoon frog, has experienced extreme volatility. It has seen significant price movements and has risen nearly 2,650% in the past year. However, its current value is only fractions of a cent, and its unpredictable nature makes it a risky investment.
Bitcoin Gold, intended to be a store of value like gold, has failed to gain traction among investors. The preference for real gold during economic difficulties, coupled with the perception of cryptocurrencies as a risky asset class, has led to the decline in Bitcoin Gold’s price. The cryptocurrency has also suffered network attacks, which have raised concerns about its security and stability.
In conclusion, while the crypto market is experiencing positive momentum, investors should be cautious and avoid investing in cryptocurrencies with inherent flaws, fraudulent characteristics, or lacking real value. Selling Dogecoin, Pepe Coin, and Bitcoin Gold may protect portfolios from potential losses.