We’ve never seen so many cryptocurrencies like today. Census platforms are crumbling with requests for validation, while 2,000 of them have joined official lists since the beginning of the year. But between the scams and those that will disappear quickly, it’s best to be careful with them.
2021 will be without a doubt the year of cryptocurrencies. We can no longer stop the emergence of this new payment method that is increasingly attracting businesses. It must be said that Bitcoin experienced an impressive increase that it didn’t seem to want to end for several months, reaching the $64,000 Last April. So, several brands like Tesla and PayPal now advertised accepting payments in cryptocurrencies, which largely contributed to their popularization.
Necessarily, this historic boom attracts the greed of many developers who also want to take your piece of cake. CoinPaprika cryptocurrency research platform has revealed that it has added about 2,000 coins to its catalog since January 2021. In turn, CoinMarketCap has added 2,655, to count today a total of 10,810.
Be careful not to invest in cryptocurrencies
The sudden interest of companies and investors in cryptocurrencies may therefore explain this explosion in the number of currencies, but not only that. In fact, they’re a lot for don’t trust your own blockchain, as is the case, for example, with Bitcoin, but an existing one. We can notably mention the token – the name given to these cryptocurrencies that borrow another’s blockchain – Shiba Inu, which is based on the Ethereum blockchain. This method greatly simplifies the development of cryptocurrencies, thus giving another reason for their overabundance.
However, we must not lose sight of the risks this represents. Among the thousands of new coins, many of them can be scams, as the creator of Dogecoin likes to think. Also, even though some are perfectly legitimate, they are drowned in a steady stream of newcomers, which makes it so much more difficult and uncertain your success. Rather than investing rashly, it is wiser to wait and see how this growing market develops.
Source: CoinDesk