Why Penny Cryptos are LETHAL for TradersCryptocurrencies are often likened to the Wild West.
They are untamed, unregulated, and packed with potential riches.
However, they are also fraught with hidden dangers and potential pitfalls.
One such peril lies in the world of penny cryptos.
They’re cheap, super volatile, and they attract the minds of those who want a quick fortune.
This is similar to a gambling mentality. And You don’t want to go down this rabbit hole.
Once you get in, you find every reason to hold.
You build so much trust, prospects and hope with them.
You might as well marry them and expect the inevitable divorce which will rob you of your money.
Anyways, penny cryptos are lethal, and here’s why.
#1: Huge Volatility with Major Fluctuations
Imagine being on a roller coaster that has extreme highs and drastic lows.
One moment, you’re at the peak, enjoying a scenic view.
The next you’re plunging into a scary abyss.
That’s the world of penny cryptos.
Penny Cryptos are definitely like the wild wild west. They swing drastically in value. This is because of the low value of the currency.
#2: Issued by Small Companies with Little Experience and Knowledge
If the financial world was an ocean, penny cryptos would be the tiny, uncharted islands you might stumble upon.
The kind of islands that do not inhabit life and have erratic waves completely wash over it on a sporadic basis.
Well, in the deep ocean of crypto currencies, Penny Cryptos are these tiny pebbles.
Most times they’re issued by small, relatively unknown companies.
Sometimes they are issued by children in their parents basements.
Sometimes they are issued by gamers who don’t want to work for a living.
Sometimes they are issued by Only Fans sexy girls who flaunt their bits and believe their
currency will go up in value (amongst other things).
Anyways, Penny Cryptos (unlike Penny Stocks) lack the experience, credibility, intangible asset value and knowledge to navigate the tumultuous shitty penny cryptos.
In fact, they call many of these Penny Cryptos Shit Coins – No joke!
Such companies often struggle with regulatory hurdles, lack of funding, and poor management, making their cryptocurrencies extremely risky ventures.
#3: High Target of Scams and Fraud and Even Ponzi Schemes
Penny cryptos can sometimes be the financial equivalent of snake oil salesmen.
Their low cost and relative anonymity make them the perfect target for scams, fraud, and even Ponzi schemes.
And you know how messed up the world is and what kind of trash people there are.
And so, they are Penny Crypto con artists who try to sell their shitty coins only to lead to either a pump-and-dump scheme.
Or to fake an ICOs Initial Coin Offering) gather a whole bunch of money from investors, then make a run for it.
Please don’t fall for these scams!
#4: Illiquid and Low Volume Which Will be Difficult to Get in and Out
One of the most lethal attributes of penny cryptos is their lack of liquidity.
Liquidity, in the financial sense, is like the exit doors in a movie theater.
The more doors there are, the easier it is for people to leave when the movie is over.
In the world of penny cryptos, these exit doors are often few and far between.
Due to their low volume, buying and selling penny cryptos can be incredibly difficult.
If you’ve invested in a penny crypto and its value begins to plummet, you may find yourself trapped, unable to sell and cut your losses.
And you’ll just be stuck in your trade for years on end, while it gathers digital dust.
#5: More Likely to Hit 0 as They are Less Trusted by the Public
Trust is like the foundation of a house.
If it’s strong and solid, the house stands tall.
If it’s weak or non-existent, the house collapses.
Given the factors I mentioned above, should be enough to make you realise.
Any one of these weaknesses with a coin, can lead to a crash down to 0.
And believe you me, most of the millions of Penny Cryptos that are around today – will be nothing more than a remnant of a memory in the future.
