The start-of-year market performance is strong, but the higher it goes, the more cautious you should be about risks! Not all major coins offer opportunities—some may appear to be in the mainstream group, but actually hide potential dangers. Today, I'll highlight 3 major coins to avoid recently—newcomers must bookmark this!
The first one to avoid is BCH (Bitcoin Cash). This week, BCH dipped slightly by 0.37%, showing weak performance. The core issue lies in outdated technology and lack of ecosystem innovation. In today's crypto market, success hinges on technological advancement and a vibrant ecosystem. BCH, beyond being a Bitcoin fork, lacks standout advantages, and investors aren't showing much interest—its 24-hour trading volume is only $627 million, indicating average liquidity and vulnerability to sudden price crashes.
The second thing to be cautious about is low-market-cap pseudo-mainstream coins (I won't name them here to avoid pitfalls). Some coins enter the top 20 by market cap and are immediately hyped as mainstream, but they actually lack real-world applications and rely solely on market sentiment. This week, during the meme coin frenzy, many of these coins surged along with the trend, but they rose quickly and fell even faster, easily trapping retail investors.
The third thing to watch out for is regulatory-sensitive coins. In addition to RWA tokenization-related coins explicitly banned in China, avoid those without compliance progress and those repeatedly warned by the SEC. Regulatory policies are changing rapidly; coins without compliance are at high risk of being investigated at any moment.
Final reminder: Core principles for avoiding pitfalls recently: avoid coins with no technology, no ecosystem, and no compliance—'three-no' coins; don't chase coins with gains exceeding 50%; never allocate more than 10% of your capital to a single coin.