How to prevent the next "Hawk Tuah" in cryptocurrency investments

How to prevent the next “Hawk Tuah” in cryptocurrency investments When people talk about cryptocurrencies, Bitcoin usually makes the news, but there are dozens of different kinds of digital currencies. In actuality, cryptocurrency that isn’t Bitcoin is typically seen as a “also-ran”; these are known as “altcoins,” or substitutes for Bitcoin.

Although Bitcoin may have been the first significant cryptocurrency to appear on the market, having made its debut in 2009, other others have gained significant traction, albeit not to the same extent as the original.

These are the biggest cryptocurrencies based on their market capitalization, or market cap, which is the total dollar value of all the coins in circulation. (As of December 20, 2024, CoinMarketCap.com provided the data. How to prevent the next “Hawk Tuah” in cryptocurrency investments

Top cryptocurrencies in terms of market capitalization

Bitcoin

Cost: $96,596.95

Cap of the market: $1.91 trillion

Bitcoin is still the coin that most people think of when discussing digital currency because it was the forerunner of the cryptocurrency era. The currency has been on a wild ride ever since its enigmatic creator, purportedly Satoshi Nakamoto, established it in 2009. But it wasn’t until 2017 that the cryptocurrency became well known. Investors now have an easier way to wager on Bitcoin thanks to the Securities and Exchange Commission’s (SEC) approval of the trading of exchange-traded funds (ETFs) that invest directly in the cryptocurrency in 2024. How to prevent the next “Hawk Tuah” in cryptocurrency investments

Ethereum

Cost: $3,379.59

Cap of the market: $406.95 billion

The second most recognizable name in the cryptocurrency world is Ethereum, which is the name of the platform. Ethereum’s smart contract feature contributes to its popularity, but the system enables users to use the currency for a variety of purposes.

USDT, or Tether

Cost: $1.00

Cap of the market: $140.72 billion

The price of Tether is fixed at $1 per coin. This is due to the fact that it is a stablecoin. The value of a certain asset, in Tether’s instance the US dollar, determines the value of stablecoins. Tether frequently serves as a bridge for traders switching between cryptocurrencies. They use Tether instead of switching back to dollars. However, some worry that Tether uses a short-term type of unsecured debt rather than being securely backed by dollars held in reserve. How to prevent the next “Hawk Tuah” in cryptocurrency investments

XRP (XRP)

Cost: $2.22

Cap of the market: $127.12 billion

Created in 2012 and formerly known as Ripple, XRP provides a means of making payments in a wide variety of real-world currencies. Ripple facilitates payments through a trustless mechanism and can be helpful in cross-border transactions. How to prevent the next “Hawk Tuah” in cryptocurrency investments

BNB (BNB)

Cost: $666.48

Market capitalization: $95.98 billion

One of the biggest cryptocurrency exchanges in the world, Binance, is the one that issues BNB. Binance Coin was initially developed as a token to pay for discounted transactions, but it may also be used to pay for a variety of goods and services.

Solana (SOL)

Cost: $190.20

Market capitalization: $91.15 billion

Solana is a more recent cryptocurrency that was introduced in March 2020. It boasts about how quickly transactions can be completed and how reliable its “web-scale” network is overall. The amount of SOL, the currency, that can be issued is limited to 480 million coins.

Dogecoin (DOGE)

Cost: $0.3075

Cap of the market: $45.28 billion

Dogecoin, which was first developed as a joke following the rise of Bitcoin, gets its name from a Shiba Inu dog internet meme. Dogecoin has limitless issuance, in contrast to many other digital currencies that have a cap on the total amount of coins in circulation. It can be used to send money or make payments. How to prevent the next “Hawk Tuah” in cryptocurrency investments

The USD Coin (USDC)

Cost: $0.9999

Market value: $42.2 billion

Similar to Tether, USD Coin is a stablecoin that is based on the dollar, therefore its value shouldn’t change. The currency’s creators claim that completely reserved or “equivalent fair value” assets, which are kept in accounts with regulated U.S. institutions, serve as its backing. How to prevent the next “Hawk Tuah” in cryptocurrency investments

Cardano (ADA)

Cost: $0.8778

Value of the market: $30.83 billion

The cryptocurrency platform that created ada, the name of the currency, is called Cardano. Cardano, which was developed by the Ethereum co-founder, also makes use of smart contracts to facilitate identity management. How to prevent the next “Hawk Tuah” in cryptocurrency investments

TRX, or TRON

Cost: $0.2437

Cap of the market: $21.01 billion

Founded in 2017, TRON is a decentralized blockchain for application development. TRX is the name of its native token. The Tron Foundation purchased BitTorrent, a popular peer-to-peer network, in 2018. How to prevent the next “Hawk Tuah” in cryptocurrency investments

Cost of Avalanche (AVAX): $38.12

Market capitalization: $15.67 billion Avalanche is a cryptocurrency that was introduced in 2020 and is renowned for its quick transactions and affordable prices. Another noteworthy feature of the Avalanche blockchain is the development of subnets, which are unique blockchains with their own set of rules and applications that let developers adapt to various technological requirements however they see fit. How to prevent the next “Hawk Tuah” in cryptocurrency investments

Chainlink (LINK)

Cost: $22.57

Cap of the market: $14.15 billion

DeFi apps require Chainlink, a cryptocurrency that drives the Chainlink network and is used to compensate operators for tying smart contracts to actual data.

The bottom line

Those who speculate in cryptocurrencies should not risk more than they can afford to lose because the market is a wild west. It’s also critical to remember that individual investors frequently compete with extremely experienced players, making it a risky situation for newcomers.

Frequently Asked Question

What is the "Hawk Tuah" scenario in cryptocurrency investing?

The “Hawk Tuah” scenario refers to incidents where investors face massive losses due to fraudulent schemes, lack of due diligence, or speculative behavior in the volatile cryptocurrency market. It emphasizes the importance of cautious and informed decision-making in crypto investments.

How can I identify potential scams in the cryptocurrency market?

Look out for red flags such as:

Promises of guaranteed high returns.
Lack of a transparent whitepaper or roadmap.
Anonymity of project developers.

Aggressive marketing tactics with limited technical details.
Conduct thorough research before investing in any cryptocurrency.

What are the safest strategies for cryptocurrency investments?

Diversify your investments across multiple cryptocurrencies.
Focus on established coins with strong market capitalization like Bitcoin or Ethereum.
Use reputable exchanges and wallets.
Consider long-term holding instead of frequent trading to mitigate risks.

What role does regulation play in preventing cryptocurrency scams?

Regulation can help establish clear guidelines for crypto projects, ensuring transparency and accountability. Regulatory frameworks often protect investors by requiring disclosures, reducing fraud, and encouraging trustworthy practices in the market.

Are stablecoins like Tether (USDT) or USD Coin (USDC) less risky than other cryptocurrencies?

Stablecoins are pegged to traditional assets like the US dollar, reducing price volatility compared to other cryptocurrencies. However, risks still exist, such as concerns about the transparency of reserves and regulatory scrutiny. Always verify the legitimacy and backing of stablecoins before investing.

Viral Topic

The Altcoin season is yet to begin since everyone has focused only on the punchline || cryptocurrency scam boiler rooms exposed, $12.1 million fraud suspect captured with a “new face”: Asia Express

You can also read about cryptocurrency from our website.

myselfcrypto || insightbitmarket || truthofcrypto || buybitmarket || defidiary || tweetcrypto || cryptocosmosworld