Investing In ApeCoin is a Bad Idea: Here’s Why
ApeCoin is trending all over the place, so now would be a good time to look at the past performance of popular meme coins and see why it’s a bad idea to ape into Apecoin.
Technical Analysis
“But that dogecoin guy became a millionaire by investing his life savings in cute doggo token”. Well here’s a chart for Dogecoin.
No surprises here. Dogecoin has been bleeding against Bitcoin for almost a year now. That means, investors who bought doge, took an incredibly higher risk(than BTC investors) and got worse returns. I can’t think of any financial asset with worse risk-adjusted-returns. In short, if you’re investing in altcoins, you would want your alt to perform as well as BTC or better since they are inherently riskier. Here’s a similar story for Shiba Inu:
As seen in the previous chart, we can see an initial few days of hype, and then a continuous bleed against BTC.
Fundamental Analysis
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Timing
Now is probably the worst time to invest in highly speculative assets. The terrible Russia-Ukraine war is happening, and the global economy and supply chains are heavily affected due to that. Taking an excessive amount of financial risk at this moment is the last thing you’d want to do.
Lastly, if you’re playing the short-term game, you have already lost. Like all financial markets, crypto will transfer wealth from the impatient to the patient investor.
TLDR: Don’t buy ApeCoin or any meme-coins. You’re likely going to regret it.
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