Should you buy established coins and get stable but smaller returns or go for solid projects and ICOs like Toon Finance whose token price has doubled?
When it comes to investing in cryptocurrency, there are a couple different approaches you can take. For example, you can be a long term investor or a short term trader. Which ever of the two you pick, you can either buy established tokens like Bitcoin and Ethereum, or invest in smaller projects with a higher chance of seeing great returns.
So which option is the better investment? Will it be the big, established names like Bitcoin BTC, Ethereum ETH, Dogecoin DOGE, Binance BNB, or something smaller with a chance of doing exponential returns?
Let’s take a look at the pros and cons of each approach to see which one makes more sense for you.
Established tokens vs smaller projects
Cryptocurrency has come a long way since its beginnings, with established tokens such as Bitcoin and Ethereum leading the charge and becoming household names. Surprisingly enough, Dogecoin suddenly boomed into its current value that frankly, we can all believe no one expected.
But small projects are looking to change up the crypto landscape and enter the market with something new and exciting. People often forget that Ethereum was once considered a small project. These small projects work hard to be innovative and give something new to investors, but face the challenging hurdle of competing against tokens that have been successful for many years.
Despite their adversities, these small projects offer amazing potential for growth, diversification, and opportunities not easily accessible from well-established tokens. After all, while everyone expects Bitcoin to still go to at least $100,000, no one expects it to go x1000 from its current price. x1000 is a big number, but it’s not that uncommon with smaller projects.
While it can be intimidating to enter a market flooded by established tokens, confidence is high amongst small projects who believe in their vision of bringing cryptocurrency into a new era.
Benefits of investing in Ethereum and Bitcoin
Investment in established tokens like bitcoin and ethereum can be very beneficial in the long-term. These types of tokens come with a level of security that newer tokens may not have, as they have been around longer have proven their reliability. Apart from this, there is also the obvious factor of time being on their side. The longer the project has been around, the more time it had to build. Build networks, infrastructure, build skills, and build reputation.
Additionally, because of their wide acceptance these digital assets are easy to exchange for fiat currency when necessary. Liquidity is incredibly important for both investors and traders so this is definitely a huge plus. Apart from this, established tokens are also more accepted as token pairs for a lot if not all other tokens.
Investing in established tokens provides stability and makes them an attractive option both for those just starting out and more experienced investors looking to diversify their portfolios. Stability is incredibly important for any investment since stability means predictability. Of course, that doesn’t paint the whole picture and not to mention the fact that crypto is hardly stable even on the best of days and even with the best of coins.
Discuss the potential risks and rewards involved with investing in small projects
Investing in small projects can be a risky endeavor, as many of the projects lack the resources of larger investments or may have inferior management teams. That’s why DYOR or do your own research is incredibly important in crypto. For example, can the team produce results or is it just a bunch of speculation that a token price might go up?
In Toon Finance’s case, it has already produced billboards and launched its decentralized exchange DEX Toon Swap ahead of schedule, December 2022.
Projects when scaled down to a smaller size, it becomes increasingly difficult to track turnover and capital expenditure, making it harder for investors to get an accurate measure on return on investment.
It’s always best to pick projects that have actual results prior to launching. If the project has something to show then it is normal for you, and others, to look. And with more people looking, you can be more confident in knowing that the project will be popular and the tokens will have high demand.
Lastly, it’s important to note that the single most compelling reason for an investor to invest in a smaller project is due to its potential. No one really believed in Dogecoin DOGE’s potential, until it made people into millionaires left and right!
Which investment is right for you?
Investing can be a great way to grow your money, but it’s important to make the right decisions when selecting investments. The best advice is to thoroughly research the investment before committing any capital.
Consider the different types of investments available such as stocks and bonds, their potential returns, and associated risks. Speak to friends and family who are experienced in investing; read articles online; meet with a professional financial advisor or accountant; or attend an educational seminar or workshop. With so many options to choose from, it can be daunting, but depending on your goals and risk tolerance there will likely be one that’s right for you.
Just always remember the two types of traders, long term and short term traders. Long term investors buy both established coins and new coins. This is because the established coins will still rise in value while also providing some semblance of stability while newer coins like Toon Finance Tokens have incredibly high performance compared to established coins. For example, Ethereum ETH actually dropped in value while Toon Finance Tokens doubled.
Pros and cons of investing in established coins vs Toon Finance token
When making a decision, it is important to weigh the pros and cons of each option to determine which path forward is best. It can be helpful to make a list of both the advantages and disadvantages of each alternative before making a choice. This allows you to evaluate whether the potential benefits outweigh any potential negatives.
For example, if you can wait out the bear market and you only have an option of investing in one token, then established tokens might be for you. But you should prepare yourself to not really make that much from it. This is similar to any exchanges, similar to buying something like Apple stocks. It won’t likely lose you money, but it will hardly make you any money as well.
Consideration should also be given to how likely it is that the purported positives and negatives will actually occur if this option is taken. In this way, it is possible to make a well-informed decision that takes into account all available information.
When investing in established names, you get relative stability, whatever is relative in the crypto market. While there are a lot of advantages for investing in established tokens, they don’t really count (such as mass adoption) too much because you will just be holding the tokens, any benefit from using them is immediately null.
While investing in newer tokens allows you to visit new and innovative projects that are worth taking a look at.
What is Toon Finance?
Toon Finance is a decentralized finance (DeFi) platform built on the Ethereum blockchain. It is designed to provide users with access to digital assets, decentralized exchanges, lending and borrowing platforms, yield farming opportunities, and more. Toon Finance offers a suite of products for users to make investments tailored to their needs. These include liquidity pools for earning interest from staking and its own DEX or decentralized exchange which uses its native token Toon Finance Token.
Toon Finance Token not only has a large use case with its dex, it also has a whole host of features planned which makes it unique from other exchanges. This makes it clear that Toon Finance is future proof.
So when investing, you have to make sure that you have a target return on investment. Established tokens are relatively more stable while smaller projects like Toon Finance have a higher chance at doing exponential gains. Risk and reward might go hand in hand but it’s still good to do your own research so find if a project already produced results. This will give you more confidence that the team is working.
Toon Finance Website and Presale links below :
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