Hello family!
So I have been seeing a lot of noise around meme coins and projects that do not really serve any purpose.
Some coins go up like nobody’s business, while others fall back to zero. It is therefore important to keep calm and understand what is happening.
Lets break it down together:
Meme coins are often quite catchy in terms of names, and always have vibrant communities.
Nevertheless, beneath the surface, most of these coins are found to be without any real value or usefulness(utility).
Of course, they might get short-term pumps driven by speculative buying. However, these may retreat into oblivion with time.
The same holds true for projects that appear out of nowhere promising moon but delivering nothing substantial.
It’s hard not to get caught up in it though when you see other people making quick money off such investments.
However after several unsatisfying experiences, I realized that running after those momentary opportunities mostly ends up in non-sustainable gains, which disappear after few moments.
Now don't get me wrong:
They are awesome, if you believe in their utility. If you're not able to determine that, then it's simply hype. That's just my humble opinion.
Alternatively,
I’ve found it more advantageous to pay attention to cryptocurrencies that have good use and strong fundamentals.
For example, Ethereum. It has remained a force to reckon with because of its smart contract abilities as well as its thriving ecosystem of decentralized apps (dApps).
I chose Ethereum over Bitcoin for several reasons, one of which is ease of access.
Bitcoin’s price that is well above $70,000 currently may discourage some potential investors from joining the market(to expensive).
On the other hand, Ethereum has a much affordable entry point (over $4000 currently) for people who want to invest in cryptocurrencies.
Moreover, there are many uses for Ethereum besides being a digital store of value.
Its smart contracts allow dApps companies to develop or facilitate complex transactions, thereby making it an adaptable platform for creativity.
In addition, Ethereum’s vibrant developer community as well as active ecosystem contribute towards its potential growth and adoption in the long run.
Ethereum’s performance can indicate sentiments of the market in general. If Ethereum goes on a bull run, then it may mean that people have started to take an interest in cryptocurrencies again.
This usually happens because many projects are built upon the Ethereum blockchain and when it does well, the whole ecosystem is raised.
But dear friends, we should still be careful and do thoroughly research personally. Although social media influencers and online forums might be helpful sources of information, one should check its sources and develop his or her own opinion based on their analysis, plus understanding the basic technology underpinning these projects as well as their long-term value.
Yet!
I am not against taking calculated risks. The crypto market after all is volatile in nature and one can always expect high returns. However, I balance risk with reward and hold a portfolio that is diversified to mitigate any losses that may occur.
In summary, dealing with the cryptocurrency market requires being diligent, being patient and ready to learn. They could be making headlines for meme coins or hype driven projects, but actual utility of cryptocurrencies and their fundamentals are the key elements that make them survive the test of time.
Henceforth as the market morphs forward into new offerings, I will be here watching cautiously and abiding by my investment principles. Again, in the domain of digital money, it is not about making quick money, rather its more about planting pillars for success in future.
Thank you for your precious time spent reading my blog.♥️
Disclaimer:
These are just my humble opinions and should not be considered as financial advice.