Hunting for the next cryptocurrency monarch

With bitcoin touching $58,000 and, the currency that was set up as a joke, dodgecoin rallying up to 12000% this year, individual investors are now looking to delve deeper into the crypto-mines.

A Wall Street Journal (WSJ) report stated that with rally in the aforementioned cryptocurrencies, investors are looking at newer digital assets such as DigiByte, VeChain, and SafeMoon as cheaper alternatives that could be the next big thing in the crypto-verse.

Often bets on stocks and cryptocurrencies, are fueled by rumors and speculation on online forums like Reddit. Experienced money managers have raised their concerns regarding this trend and warned that markets are overheating, which may hurt small investors when prices reverse course.

The interest has further been fired up by celebrities endorsing certain cryptocurrencies. Rapper Lil Yachty and YouTuber Jake Paul also promoted SafeMoon to his nearly four million followers.

SafeMoon has rallied more than 20,000% since its launch in March, trading as high as more than one hundred thousandths of a U.S. dollar for a market value of about $3.7 billion, reported WSJ.

The year 2017 saw “altcoins” like litecoin, Bitcoin Cash, PinkDog, MagicCoin, and BitSoar rally due to a boom in a new fundraising method called initial coin offerings, which was condemned by regulators. Many of the crypto alternatives have also failed to make money for their backers or collapsed entirely, reported the article.

WSJ report stated that investing in altcoins is particularly risky as cryptocurrencies are relatively new investment products that are harder to trade and don’t have the same level of oversight by U.S. regulators as stocks and bonds, providing a prime ground for fraud and theft.

Even as smaller cryptocurrencies are more volatile than bitcoin, for now, some traders see that as an opportunity to make money.

Picture Credits : TechStory