When we need to review a cryptocurrency if it’s legit or scam, we need to make sure to do a proper research. Like for every investment, we need to check it frequently and evaluate how to proceed. It is similar for Altcoins and very important.
Crypto currencies are a very fast evolving field of investment because of crypto technology.
Innovation is changing opportunities quickly and we need to select good Crypto coins for it.
Crypto is not regulated
Unfortunately, crypto coins are not regulated yet and we will see many fraud coins to be available for buy and we should avoid it. Due to a lack of regulation, we need to do a research ourselves and find out if a coin is legit or scam. Until coins are fully regulated, we need to do a research ourselves.
We should always review coins to prevent a loss. When a coin is reviewed badly by experts, like Tron and EOS have received bad reviews by experts, it is time to sell quickly.
But it’s even more important right now to sell all outdated Altcoin bags like Tron and EOS.
Why can unregulated Altcoins fail?
Altcoins are very volatile and many Altcoins have failed so far. Many ppl have lost money by holding failed coins. Altcoins are not regulated yet and it poses a big danger for us.
But how can we make sure to avoid such failing Altcoins?
We should have a very close look to such Altcoins and try to find out about very important details:
- Is it a promising coin where new technology is used? For example, Litecoin and Nano are using a very old technology.
- Are developers very experienced and professional to set up a good Code?
- Is it a coin involved in fraud (like BSV, Ripple or BCH)
- Is it a coin where security has been good or weak (avoid hacked coins)
Because if coins are not interesting, have not good tech or people are not interested in it, such coins will fail. Many coins are fraud, where we can’t trust owners.
When we have done our research, we can know why some coins will fail and how to avoid it.
Many coins have been started when Cryptocurrencies were less developed and much less innovative.
And here it is a big problem for many Altcoins: using outdated Blockchain technology.
A good example for such an issue is Tron.
Tron was developed from Justin Sun to compete against Ethereum 1.0.
But Tron was such a badly coded coin, it couldn't even compete against Ethereum and lost many marketcap against Ethereum.
Now, since Ethereum 2.0 is launched, Tron is completely embarrassed because of it's old tech.
Tron is based on an old technology where more innovative coins are outperforming Tron massively.
Tron is losing relevance very quickly compared to such new and more modern coins like Ethereum 2.0, Avalanche or Algorand.
One more old coin is EOS. It could not meet expectations and was even place 5 in market cap until it is now very irrelevant. People still holding EOS are having a big loss.
Lucky, who got out timely, to prevent a loss.
Conclusion
A lack of regulation is usually very bad for us because it enables fraud. Instead of an institution, where we can rely on, we have to do a research ourselves, which coins are fraud, outdated or just not good enough.
We should sell such outdated coins like Tron because such coins will become more and more obsolete over time.
You are right. Cryptocurrencies are not controlled by the government. Because the basic principle of cryptocurrency is decentralized. But does reality work as we think? Is it true that there is no government interference in cryptocurrency?
My answer can be yes. Currently, there are many countries where the government has introduced regulations on crypto exchanges. Before trading, they have to inform the government about who is trading through KYC. Again, in some countries, the government has also made arrangements to collect taxes on crypto income. There are also some other cases, which look like the government can keep an eye on us. Because if a currency is forged, the government can take action against it. If someone does something illegal, the government can take all measures against him, if necessary, seize accounts or funds.
After seeing all this, should we say that the government cannot control us. But yes, the government cannot control cryptocurrency 100%. So we should examine ourselves to keep our investments safe. We can never completely trust others when it comes to investments.
