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Crypto has been gaining popularity because of the decentralized nature of the blockchain.
However, before you purchase the first coin you come across, its important to conduct thorough due diligence.
There are dozens of different types of crypto to choose from.
But just remember, this isnt financial advice always consult with your financial advisor if you have any questions.
Dogecoin (DOGE)
Dogecoin started as a meme back in 2013, said Patrick.
The rapid popularity of Dogecoin attracted social media attention and investments by high-profile individuals like Elon Musk.
Despite its popularity, Dogecoin seems to fall short in a few areas.
For one, Dogecoin lacks a competitive advantage when compared to the nearly 20,000 of other offerings.
Additionally, the never-ending supply of Dogecoin could undermine the appreciation potential.
Similarly, Dogecoin is primarily used in tipping culture, not to facilitate large transactions.
So far, this has not been the case.
The process of purchasing Hex is also more complex than other crypto investments, Patrick explained.
First, you should probably purchase Ethereum.
Then, you better exchange the Ethereum for Hex tokens.
Withno clear utility or revenue generation, this crypto is filled with red flags.
FTX Token (FTT)
FTX was a token created by Sam Bankman-Fried.
However, back in 2022, FTX filed for bankruptcy following a multi-billion-dollar fraud scheme by Bankman-Fried.
In total, FTX customers lost around $8 billion, while equity investors lost another $1.7 billion.
Despite an $11 billion forfeiture order to repay victims, you might see some FTX tokens floating around.
Thecollapse and bankruptcy filingof FTX makes FTX tokens worthless and volatile, Patrick said.
Any coins that appear to be heading for a downward decline or bankruptcy should be avoided.
If you come across an FTX token, avoid the investment.
Shiba Inu (SHIB)
Have you ever heard of Shiba Inu?
In addition, Shiba Inu does not have a competitive advantage or differentiation.
The primary use of Shiba Inu is for payments, said Patrick.
The lack of value proposition doesnt support along-term appreciation playfor investors looking for large gains.
If youre looking for an appreciating coin, look elsewhere.
A rally or rebound never seems to materialize for it.
The Bottom Line
So, are you ready to make your first crypto investment?
If so, be sure you fully evaluate the coin before making an investment.
Look for companies with full transparency in development and operations.
Additionally, companies need adequate security and a real-world purpose to make solid long-term investments.
With over 20,000 coins on the market, you have options when it comes to investing.
Take the time to evaluate all of them.
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