The cryptocurrency market in 2024 has experienced a resurgence, with Bitcoin exceeding $70,000 and Ethereum reaching a two-year high. However, not all cryptocurrencies have performed well; several major altcoins have declined despite the generally positive market conditions.
Investors should be cautious and conduct thorough research before investing in cryptocurrencies. Key warning signs to watch for include a lack of clear purpose, unrealistic promises, unclear team backgrounds, poor security measures, and overly complex tokenomics.
Among the worst-performing cryptocurrencies in the first half of 2024 are MultiversX (EGLD), Bitcoin SV (BSV), and Optimism (OP), all of which have seen significant declines. Investors can better navigate the dynamic cryptocurrency market by identifying these potential red flags and avoiding underperforming projects.
However, let’s delve into the risks associated with investing in crypto and talk about the worst cryptocurrency in 2024 you should avoid if you want to avoid getting burned on your investment.
Key Risks of Investing in Cryptocurrencies
Investing in cryptocurrencies offers the potential for high returns but also carries significant risks that investors should consider, which include the following:
- Market Volatility: Cryptocurrency prices can go up and down very quickly. This means they can be a risky investment because prices can change a lot in a short time.
- Unclear Value: Unlike stocks, it’s hard to know what a cryptocurrency is worth. Prices are often based more on what people think rather than actual value.
- Security Risks: Cryptocurrencies can be targets for hackers, scams, and theft. If you lose your cryptocurrency this way, it’s usually impossible to get it back. Also, keeping cryptocurrencies on exchanges (websites where you can buy and sell them) can be risky if the exchange gets hacked.
- Regulatory Uncertainty: The rules about cryptocurrencies aren’t clear in many countries. New laws or regulations could suddenly change how cryptocurrencies work or affect their prices.
- Technical Complexity: Using and storing cryptocurrencies can be tricky and requires some technical know-how. Mistakes, like sending cryptocurrency to the wrong address, can be costly.
How to Reduce Cryptocurrency Risks
To be safer when investing in cryptocurrencies, consider these tips:
- Do Your Homework: Research any cryptocurrency you’re thinking about investing in. Look out for warning signs, like unclear goals or unknown team members.
- Invest Only What You Can Afford to Lose: Since cryptocurrencies are risky, don’t invest more money than you can afford to lose.
- Use Secure Wallets: Store your cryptocurrencies in secure, non-custodial wallets (wallets that you control like TrustWallet, Metamask, etc.), instead of leaving them on exchanges.
- Be Cautious of Scams: Be wary of emails or messages asking for your private information or offering deals that seem too good to be true.
- Keep Up with Regulations: Stay informed about any new rules or laws that might affect cryptocurrencies. Hipo Finance review – Earn Passive Income up to $1000 with Toncoin On Hipo app
By understanding these risks and taking steps to protect yourself, you can invest in cryptocurrencies more safely. However, always remember that this type of investment can be very unpredictable.
Criteria for Identifying Worst-Performing Cryptocurrencies
When trying to identify the worst-performing cryptocurrencies, it’s important to consider several key factors, which include the following:
- Price Performance: Look at the historical and current price trends of the cryptocurrency. A significant drop in price over time might indicate underlying problems with the cryptocurrency.
- Market Capitalization: This is the total value of a cryptocurrency. A low market cap compared to similar cryptocurrencies might suggest that the currency is more prone to price manipulation and volatility.
- Trading Volume: The amount of trading activity can reveal how much interest and liquidity there is in the cryptocurrency. Low trading volumes might indicate a lack of investor confidence and potential stagnation.
- Team Experience and Transparency: The experience and openness of the development team are crucial. Teams with experienced members and clear communication about their projects are generally more trustworthy.
- Project Fundamentals and Roadmap: A well-defined purpose and a realistic plan for the future are important for a project’s long-term success. Cryptocurrencies that don’t have clear objectives or timelines may have trouble becoming successful.
- Community Sentiment and Engagement: The feelings and activity levels within the cryptocurrency community can provide insights into its potential. A strong, active community often supports a project’s success, while negative sentiment can be a warning sign.
Potential 5 Worst Cryptocurrency Investments in 2024
Since January 2024, most crypto has been seriously down to 90%, and the growth of some of this project is nothing to write home about. However, I’m going to list some of the potential worst cryptos in 2024.
MultiversX
The first on my list is MultiversX, a blockchain protocol designed to achieve significant scalability through the implementation of sharding across network, transaction, and state functionalities. Positioned as a technology ecosystem for the evolving internet landscape, it encompasses decentralized finance, real-world assets, and the Metaverse. The protocol boasts a smart contracts execution platform that can reportedly handle up to 100,000 transactions per second, with a latency of 6 seconds and a transaction cost of $0.002.
According to the chart, MultiversX has been down to 90%. This crypto hit an all-time high of $552 on November 23, 2021 (3 years ago), and it is currently trading at $32 at the time of writing this article. Do you think MultiversX will move to its all-time high this coming bull run? Let me know in the comment section.
Bitcoin SV
Bitcoin SV (BSV) was created in 2018 after a hard fork from the Bitcoin Cash (BCH) blockchain, which itself had split from the original Bitcoin (BTC) blockchain in 2017. The purpose of Bitcoin SV is to align with the original vision of Bitcoin, as outlined in Satoshi Nakamoto’s white paper. It focuses on providing scalability and stability, adhering to the concept of Bitcoin as a peer-to-peer electronic cash system. Additionally, Bitcoin SV aims to offer a distributed data network capable of supporting advanced blockchain applications at an enterprise level.
At the time of writing this article, Bitcoin SV is currently trading at $52 with a market cap of $1 billion. Moreover, Bitcoin SV hit an all-time high of $489. Those who bought Bitcoin SV at it ATH are 90% down from their investment. what do you think about Bitcoin SV, is it still a good investment? let me know in the comment section below
Optimism (OP)
The OP token acts as the governance token for the Optimism Collective, which manages the Optimism Layer 2 (L2) blockchain. The Optimism Collective is an innovative experiment in digital democratic governance, designed to promote rapid and sustainable growth within a decentralized ecosystem. This initiative is managed by the newly established Optimism Foundation.
The OP token is essential for governing protocol upgrades and network parameters. It also provides a continuous incentive system for projects and users within the Optimism ecosystem. In the next six months, 5.4% of the total OP token supply will be distributed to various projects on Optimism through a governance process.
Developers and teams within the Ethereum ecosystem can apply for grants to support their projects, encouraging collaboration and innovation within the community.
At the time of writing this article, optimism is trading at $1.69 with a market cap of $1.8 billion. Optimism reached an ATH of $4.84 in March 2024, and it is almost 66% down from its all-time high. Those who invested 5 months ago are 66% down. Is this still a good buy? Will optimism claim its previous all-time high? What’s your opinion?
Polkadot
Polkadot is a Layer-0 open-source blockchain platform designed to connect and operate multiple blockchains within a unified ecosystem. It allows various protocols and blockchains to share unique features while benefiting from shared security, making it a scalable and diverse multi-chain technology.
The term “heterogeneous” highlights Polkadot’s flexibility, as it does not impose any specific requirements on the nature or structure of the chains in its network. This means even non-blockchain systems can become parachains if they meet certain criteria.
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Polkadot functions as a collection of independent chains, like Ethereum and Bitcoin, but with notable enhancements: it provides shared security and enables trust-free interchain transactions. This innovative design allows developers to secure their blockchains from the outset, improving overall network security and interoperability.
In summary, Polkadot’s architecture supports a wide range of blockchains, fostering collaboration and innovation while addressing the limitations of traditional blockchain systems.
Polkadot is trading at $5.59 with a market cap of $7.7 billion at the time of writing. Moreover, Polkadot reached an ATH of $54.98 on Nov 4, 2021 (over 2 years), according to Coingecko. While Polkadot launched at $2.70 and has done just 100% since Aug 20, 2020 (almost 4 years),. Those who invested in Polkadot at its ATH are 90% down. Do you believe Polkadot will reach its previous ATH? Let me know in the comment section below.
Cardano (ADA)
Cardano is a proof-of-stake blockchain network that supports decentralized applications (dApps) through a multi-asset ledger and smart contracts. Unlike many other blockchains, Cardano does not base its technology on Bitcoin or other existing platforms. Instead, it collaborates with leading academics to research and develop innovative solutions, which undergo rigorous academic peer review and are presented at major international conferences. This approach allows the team to create prototypes that address real-world technical and functional challenges, leading to well-defined technical specifications before formal development begins.
On September 22, 2022, Cardano implemented the Vasil hard fork, a significant upgrade aimed at enhancing smart contract capabilities, increasing the network’s throughput, and reducing transaction costs. The Vasil upgrade introduced several improvements, including diffusion pipelining, which optimizes block propagation and enhances transaction processing efficiency. It also enhanced Cardano’s smart contract programming language, Plutus, making it more robust for developers.
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This upgrade is crucial for Cardano’s ecosystem, as it not only increases the scalability of dApps but also improves overall network performance, positioning Cardano as a competitive player in the blockchain space.
Cardano is trading at $0.4 with a market cap of $14.2 billion and those who invested in Cardano at it ATH of $3.09 Sep 02, 2021 (almost 3 years) are 87% down from their investment. Do you think Cardano will hit its previous ATH?
Conclusions
As the crypto market is very volatile, it is very important to invest what you can afford to lose as an investor. Don’t invest blindly, or else your investment might move to zero just like most coins are 90% down since their previous ATH, and the attendance of it moving to its previous ATH is very slim.
so kindly research the project you want to invest in and follow up on their socials such as X( formally Twitter), Facebook, telegram, and more.
Do you think most of those coins listed with 80-90% down will get back to their all-time high?