Dallas Mavericks owner and particularly DOGE enthusiast, Mark Cuban believes investing in alternative cryptocurrencies is like injecting money into stocks, bonds and private companies. He shared this information while advising investors who want to get on their toes in the altcoin market. However, Cuban pointed out that although he believes cryptocurrencies like DOGE could potentially turn into a viable currency, investing in altcoins carries more risk as they are volatile and speculative.
Cuban advises investors
According to him, treating altcoins as other investment vehicles means that people should not blindly copy what other individuals in space are doing. Explaining why it is not a reasonable choice to follow the investments of his gluttons, Cuban shared that he invested in a DeFi token called Titan, and this fell to zero on June 16. Cryptocoin. com, while some suggested that Titan’s collapse was a rug pull, the project behind it, Iron Finance token, said that it fell due to the sale of the coin.
While altcoins rarely bottom, Cuban highlighted his failed investment in Titan, showing how dangerous altcoin investments are and why investors should do due diligence before entering the crypto market.
Experts agree with DOGE fan
Many industry experts, reflecting Cuban’s feelings, pointed out that it is valuable to do extensive research before investing. Another investment rule they accept is to spend as much as you can afford to lose. On top of that, experts believe that altcoin investors should consider completing three steps to avoid unnecessary risks.
The first step is to check the prestige of a project to make sure it is in good standing and its founders are intact. After that, it’s vital to price an altcoin’s market reach to determine if it’s market readiness. If an altcoin exists simply through a dubious upstream channel, experts recommend further investigation. Also, if ways to buy are missing, it’s best to avoid the altcoin altogether, considering it could be a scam.
The final step is to assess the technical risk, which includes checking the quality of the code behind the altcoin. However, given that the codes vary from altcoin to altcoin, this is a complex task. To reduce the chance of missing out on any potential weakness that could make an altcoin less trustworthy, it is recommended to hire a reputable third party to audit the altcoin code you want to invest in.