3 Reasons To Buy ApeCoin (APE) And 1 Reason To Sell

Last Updated April 15th 2022

8 Min Read

ApeCoin Could Be An Attractive Investment ― But It Comes With One Major Disadvantage.

Key Points

ApeCoin has many pros (including a strong BAYC community, multiple exchange listings, and positive reserve risk/investor confidence).
Investors must understand that ApeCoin hit the crypto finance market in March 2022, and therefore, has little utility.
For risk-takers, APE provides a huge avenue for growth.

ApeCoin (APE) is a top 50 digital asset by market capitalization.

APE came into existence as an inspiration from the Bored Ape Yacht Club (BAYC) NFT project which has become one of the most successful.

In the past month alone, APE was one of the best-performing cryptocurrencies.

The token rallied by 3,840% within hours, and by the end of March 2022 had brought more than 1,000% gains to traders and investors.

At its current price below $15, ApeCoin could prove to be a huge bargain for investors with a long-term outlook of the market.

Here are 3 reasons to buy ApeCoin, and 1 reason to sell APE.

No. 1 Reason To Buy: ApeCoin Has Strong Community Support

Apecoin, Bored Ape NFT

Strong community support is one of the reasons to buy ApeCoin.

No cryptocurrency can survive without a community.

Ether (ETH) is being held by the millions by many traders and investors due to the support of its community (developers, traders, decentralized finance fans, liquidity providers, and non-fungible token lovers).

In the same way, ApeCoin has strong community support.

Do not forget that APE came into prominence because of its association with the Bored Ape Yacht Club (BAYC) and its sister project the Mutant Ape Yacht Club (MAYC) NFT projects.

In March 2022, the company behind the two projects acquired one of the highest-selling NFT collectibles CryptoPunks.

Per the all-time rankings of NFT collections by sales volume, CryptoPunks, the Bored Ape Yacht Club, and the Mutant Ape Yacht Club appear in the top 5.

The three projects have more than $1 billion in sales.

This bodes well for ApeCoin since many people link activities of these digital collectibles to the fortunes of the cryptocurrency.

Aside from these projects, the ApeCoin community across Discord, Telegram, Facebook, Instagram, Reddit, and Twitter continue to hype the project to newbies online.

They discuss promotions and events related to the project.

One of these promotions is ApeCoin airdrop which will end on June 15, 2022.

This promotion is rewarding all Bored Ape Yacht Club and the Mutant Ape Yacht Club holders with ApeCoins.

Holders of BAYC stand a chance of earning more than 10,000 ApeCoins while holders of MAYC stand a chance of earning more than 2,000 ApeCoins.

With thousands of people patronizing these digital collectibles, it is not surprising to see millions of dollars being thrown into the buying of BAYC and MAYC daily.

The resultant effect so far has been a positive reflection in the price patterns of the novel token of the ApeCoin ecosystem, APE.

With millions of people sold into the ApeCoin crypto project, many analysts believe APE could reach new milestones in the future. Analysts at Price Prediction.net think APE could reach the best possible price of $122 in 2027.

Therefore, investing $1,000 in APE could see you with 82 APEs in your portfolio.

Once such a milestone is tested, you could be seeing a matured investment of around $10,000.

Overall, investing in APE today could see you with more than 900% returns in the long term.

Check Out: ApeCoin (APE) Price Prediction

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

No. 2 Reason To Buy: ApeCoin Can Be Accessed On Multiple Exchanges

As of April 11, 2022, 43 exchanges support the trading of ApeCoin. Some of them include but are not limited to eToro, HitBTC, Mandala, ZB Global, Bitforex, LBank, CoinEx, AEX, MEXC Global, BTSE, Bitrue, OKCoin, SushiSwap, Bitpanda, Crypto.com, Kraken, Gemini, BitMart, FTX, OKX, Kucoin, Gate.io, Huobi Global, Uniswap V3, Binance, and Coinbase Pro.

Most of the exchanges that support APE always appear on Statista’s periodical report on the biggest cryptocurrency exchanges by 24-hour volume.

Most of the exchanges record more than $1 billion in daily trading volume.

It is not impossible but so far ApeCoin is the only cryptocurrency to have garnered the support of Coinbase Pro, eToro, Binance, FTX, and OKX among others on its first day as a tradable token.

While petitions had to be signed on Change.org for digital assets Dogecoin (DOGE) and Shiba Inu (SHIB) to gain the attention of eToro and Coinbase, ApeCoin was announced by these exchanges on/before the launch of the entire project.

As of October 2021, Binance has more than 28 million customers, Coinbase and eToro have more than 70 million clients, and OKX has more than 10 million users.

With this, investing in ApeCoin with any amount of money is a step in the right direction.

There would never be processing issues that could emanate from liquidity problems.

Aside from this, these cryptocurrency exchanges support many payment methods such as bank transfers, bank cards (VISA, MasterCard, and Maestro), and e-wallets such as PayPal, iDEAL, Rapid Transfer, Skrill, and Neteller.

Most of these platforms are highly accessible (can be found on the World Wide Web, iOS, and Android-powered smart devices such as phones, tablets, and pads).

Binance and OKX provide staking services. Therefore, aside from investing in APE with an eye on long-term gains, you can also get periodical rewards in the form of staking.

Since you would want to invest in APE in an easy and fast manner, ApeCoin’s availability on many exchanges is one of the reasons why you should consider investing in the token.

No. 3 Reason To Buy: ApeCoin Has A Positive Reserve Risk/Investor Confidence

No matter the potential of a cryptocurrency, if investors do not have confidence in the token, it would go bust.

This is the primary reason why digital tokens that showed promise in the early days of 2021 have been replaced by coins such as ApeCoin in 2022.

If a cryptocurrency has a relatively higher price but investor confidence in the asset remains low, that digital asset is considered an unattractive investment.

On the other hand, if a cryptocurrency has a relatively lower price (APE under perspective) but investor confidence in the token remains high, that digital asset is considered an attractive investment.

Would you want to invest in a cryptocurrency that has been labelled an unattractive investment?

Or, would you rather invest in a digital asset that has been labelled an attractive investment?

APE has recorded an average daily trading volume of $500 million in April 2022.

What this means is that traders and investors have not abandoned the token.

In April 2021, there were around 12,000 coins in the market.

A year later, there are more than 18,000 coins in the market.

For APE to see such liquidity means that holders of the token believe the coin could trade for relatively higher prices than it is trading for today.

You can invest in ApeCoin knowing that you are not the only investor who has confidence in the novel token behind the ApeCoin ecosystem.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

One Reason To Sell: ApeCoin Is Still A Novelty

ApeCoin is relatively newer in the crypto finance market.

With less than a month of trading experience and its existence, as of writing, APE continues to profit from the hype which has not died down.

As the months wane off, there could be the launch of new cryptocurrencies with exciting ecosystems.

Do not forget that ApeCoin is relying on the Bored Ape Yacht Club at the moment to remain relevant in the market.

The ApeCoin ecosystem is still in its developmental stages.

Once coins with an upgraded ecosystem that add innovations into the space come along, the trading volume of APE could start dwindling.

A great example of this can be attributed to the Internet Computer (ICP) project that took the market by storm in May 2021.

Internet Computer reached an all-time high (ATH) price of $750.73 on its opening day (May 10, 2021) as a crypto trading asset.

This can be compared to ApeCoin reaching an ATH of $39.40 on March 17, 2022.

As the hype died down, Internet Computer (ICP), as of April 2022, trades for less than 97% of its all-time high.

As per CoinMarketCap, 989 initial coin offerings (ICO) have ended, 15 ICOs are upcoming, and as of April 11, 2022, 3 were still ongoing.

This means that there are at least 18 projects in the works that will be launching cryptocurrencies soon.

Only time will tell if ApeCoin will not become the Internet Computer of 2022.

This is why we continue to caution our readers to invest in APE with caution.

Do not invest in ApeCoin with your life savings.

Only invest in ApeCoin an amount you can write off as bad debt.

Here’s The Bottom Line

ApeCoin (APE) is a unique cryptocurrency with a lot of hidden potential in the future.

On the other hand, with an eye on the ICP project, APE could see a drop in trading volume, and this could lead to a plunge in its price for a long time.

However, if ApeCoin can improve its ecosystem, and not rely solely on the BAYC/MAYC projects, the token can rally to new high highs based on its metrics.

The potential gains that could be earned from investing in ApeCoin make the digital asset a token you should consider adding to your investment portfolio.