The Risks of Trading These 3 Cryptocurrencies Today
The cryptocurrency market is known for its wild price swings and volatility, and while recent trends have shown an upward movement, it’s essential for investors to remain cautious. After all, the market remains highly volatile, and significant price fluctuations are common. With that in mind, there are some specific cryptocurrencies that investors may want to avoid trading today. Here are three cryptos that come with risks.
The Risk of Snowballing Declines
Investing in cryptocurrencies that have experienced significant price drops can be particularly risky. These tokens might continue to fall in a snowball effect, driven by market sentiment and panic selling. Given the recent market dynamics, investors need to be aware that some altcoins could see further declines due to the inherent volatility of cryptocurrencies.
1. Trust Wallet Token (TWT)
Trust Wallet Token (TWT) operates on the BNB Smart Chain platform with a circulating supply of approximately 416.65 million out of a total supply of 999.67 million. TWT’s recent price was around $1.26, marking a decrease of 5.97% in the last 24 hours. While it is traded actively across 195 markets, the inherent volatility of TWT, especially in the wake of market uncertainties, makes it a risky bet for the upcoming week.
2. PancakeSwap (CAKE)
PancakeSwap (CAKE) is another cryptocurrency to be cautious about. With a circulating supply of around 228.84 million out of a total supply of 387.07 million, CAKE’s price has recently been around $2.16, experiencing a 1.28% decrease. Despite being traded on over 1175 active markets, CAKE’s exposure to the volatile DeFi sector and recent market trends suggests that it could be susceptible to sudden price movements.
3. Neo (NEO)
NEO is a cryptocurrency with a focus on smart contracts and enterprise solutions. It has a circulating supply of about 70.54 million out of a total supply of 100 million, with a recent price of approximately $12.19, showing a decline of 3.56% in the last 24 hours. While it’s traded across 298 active markets, NEO’s current market position suggests potential risks in the short term.
In conclusion, while the cryptocurrency market holds the promise of significant gains, it’s also important to recognize and understand the risks involved. Before investing in any cryptocurrency, it’s crucial to conduct thorough research and consider the potential risks, especially in a volatile market environment. Remember, every investment comes with its unique set of risks, and it’s essential to be mindful of these when considering trades in the cryptocurrency market.
### News source: cryptoticker.io