A lot of cryptocurrencies are completely worthless because they are created as a joke; they do not have any funding, scams, very low trading volumes.
If a blockchain protocol supported by a cryptocurrency has value or utility, people would obviously invest in it. However, when there is no utility, people would not buy it. Thus, getting a listing in an exchange can become a problem, and eventually, the coin would trend out of use due to low volume and low funding and nobody willing to use it.
Good liquidity is important to improve cryptocurrency trading volumes. Cryptocurrencies without liquidity and trader interest will be abandoned very soon. Developers will lose interest due to a lack of income, and they will abandon their support.
There are several projects which start without a concrete plan. They sometimes get more trader interest than they anticipated. And, they are not sure of why they are famous and for what. And, they eventually do not have a concrete purpose of sustaining the users they have acquired.
For any cryptocurrency project to be a success, it should have utility to bring income. The developers will have to see some money coming into their pockets. Also, the investors will need a lucrative profit margin.
Investors need to be clear that they are not investing their money in dead coin projects. Before, investing, it helps to watch the project and its activity on social media platforms. Good exchanges usually list good coins. If the token is not listed in some good exchange, it is not worth looking into the project.
However, there are some projects with a concrete plan, who are really doing well but are yet to be listed in the exchanges. If the plan is concrete, being an early bird investor only improves gains when the tokens gain value in the future.
Several projects sustain the illusion of being good projects in the eyes of the investors; however, in the long run, investors can perform some extensive background checks, profit statements, and availability on exchanges and trading volumes to decide if they are working with a worthy token. Due diligence is the process of identifying trustworthy projects that will help with regrets and frustration.
Making profits from cryptocurrency only happens when you invest in projects that stay alive and in the game. Perpetual activity is important for any project to be alive. So, when you invest in a token early when they are just beginning, identify the scope of usability and their scope for survival.
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