Is It Safe To Invest In ApeCoin (APE)?
ApeCoin (APE) is a young project but has been rated highly by several analysts, trading gurus, and experts in the crypto finance space. Within the crypto community, many people feel ApeCoin is a safe investment.
Despite plunging by more than 70% in less than a month after it reached record figures, analysts believe the team behind the ApeCoin ecosystem will make the project sustainable.
So, should you buy ApeCoin? As always, conservative analysts, and naysayers are bearish when it comes to investing in APE and digital tokens.
They believe cryptocurrencies do not have any intrinsic value and cannot be considered representative money (like fiat currency) since they exist in codes on personal computers.
Some conservative analysts think that the cryptocurrency will crash once the hype has been priced in within 90 days of its launch.
With that said, the majority of crypto analysts remain bullish when it comes to investing in ApeCoin.
They project APE to reach new milestones in the long term, not the short term.
The two analysts from diverse schools of thought agree that investing in ApeCoin and cryptocurrencies as a whole come with certain risks.
They believe that independent research needs to be conducted on the part of potential traders and investors before any investments could be made.
What are some of these risks these analysts fear and how can you avoid them?
We answer this by assessing all the types of risks associated with ApeCoin investing.
Additionally, we look at practical steps that could be taken to ensure that you get safety when investing in ApeCoin (APE).
Before we do this, let us examine ApeCoin before you buy them.
What To Consider Before Buying ApeCoin (APE)?
First of all, we cannot deny the volatility of ApeCoin.
Therefore, if you are a beginner investor searching for a safe investment that comes with relatively higher returns, you do not need ApeCoin.
On the whole, you need to invest in cryptocurrencies for that matter.
ApeCoin is not the sole volatile digital asset, newer coins that will be hitting the market in the months leading to the end of 2022 will come with risks too.
Volatility is the first factor you have to consider before investing in ApeCoin.
Volatility in the crypto finance market is what prompted Steve Hawkins, the Chief Executive Officer (CEO) of Horizons Exchange Traded Funds (ETF) to assert in May 2021 that “Bitcoin is more volatile than volatility itself”.
Bitcoin is always used as the point of reference since it is the first cryptocurrency backed by the possibilities of blockchain technology.
Therefore, if you are interested in earning decent annual percentage yields (APYs), then you should do everything in your capacity to get government bonds or bills.
That way, you free yourself from any price volatility that could wipe off your entire investments within a short period.
If you want to understand the unpredictable nature of ApeCoin, let us do a thorough assessment of its short price history from March 17, 2022, to date.
APE opened on March 17, 2022, at $1.
After a few hours of trading, ApeCoin, like other new coins, saw a substantial increase in investor interest.
This led to a soaring of APEs' price to a new all-time high of $39.40, a 3,840% spike in price.
By the end of the day, ApeCoin had fallen by 78% to a price of $8.52.
APE traded in the range of $8.52 to $13.85 for the next nine (9) days.
After opening on March 27 with a price of $13.85, APE shed 8% of this price by the end of March.
APE opened in April 2022 at $12.70, reached a monthly high of $13.78, and was trading at $11.12, as of writing.
This means that APE gained 8% in the first days of April and has shed 19% of April’s high, as of writing.
Early investors of APE may have seen huge returns that could have even turned some into millionaires.
Unfortunately, those who bought APE at the top of the market continue to rely on hope since they have lost a huge part of their investments.
Imagine someone buying $100, 000 worth of APE when it was trading for $39.40.
At such a price, the person would have purchased around 2,538 APE.
At $11.12, their investments would have dipped to around $28,223.
Therefore, you do not have to rely on cryptocurrencies as the sole income stream.
We would advise that you spread your investments across several asset classes.
This way, a loss in one could be offset by gains in another.
Editor’s Advice: Do not follow the crowd, especially, the fear of missing out (FOMO), and invest all your money into ApeCoin. Assess your risk appetite before investing in APE.
The most important advice we continue to give our readers and clients is to invest in ApeCoin and digital currencies in general an amount of money that will not do anything to your savings account.
Don't Miss: ApeCoin (APE) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
What Are The Risks Associated With ApeCoin (APE)?
Fraud and hacking are the biggest risks associated with investing in ApeCoin and digital currencies as a whole.
According to a report by NBC News, there were more than 20 cryptocurrency exchange hacks in 2021.
In 14 of these cases, hackers took off with a minimum of $10 million. Six cryptocurrency exchanges saw more than $100 million stolen by hackers.
This was a significant increase in the cryptocurrency hacking reports of 2020 published in 2021.
If you are an active account holder of Reddit, Twitter, Facebook, Telegram, and Discord, you must be extremely vigilant.
Our researchers continue to come across unsolicited proposals from so-called fund managers who promise above-average percentage yields.
Knowing that many people would become suspicious of high amounts, they quote relatively smaller amounts which range from $100 to $500.
Taking advantage of the anonymity in the use of cryptocurrencies, they provide a receiver wallet address.
Once you send funds to their wallets, they take off with your hard-earned money, and you never hear from them again.
Editor’s Advice: You should never trust people you do not know with your money.
If you want to invest in ApeCoin, we would like to recommend eToro for your trading needs.
If you want to invest in ApeCoin through a decentralized exchange, we would like to recommend Uniswap.
Before you can use DEXs, you must register for a wallet.
We would like to recommend MetaMask and TrustWallet since they can connect to Uniswap’s Vault 3 (Uniswap V3).
Check Out: How To Buy ApeCoin (APE) On eToro ― Beginners Guide
Other Types Of Scams To Look Out For
Initial Coin Offerings for Fake Digital Currencies
This is the cryptocurrency version of Initial Public Offerings (IPOs) for stocks from mainstream companies.
Initial Coin Offerings (ICOs), normally abbreviated as ICOs, are the new way of raising funds to support a project in the decentralized finance (DeFi) space.
Though popular, it is not regulated.
More than 90% of projects under the current crypto climate used ICOs to raise billions of dollars to support their innovations.
To help you understand the impact of ICOs, you should assess the Chainanalysis crypto crime report of 2022.
Per excerpts retrieved from the report, cryptocurrency crime had a record-breaking year in 2021.
Scammers took off with more than $14 billion in 2021.
This figure was twice the amount scammers got from crypto in 2020.
The original purpose behind ICOs was to support developers without the necessary funding to bring innovative projects to light. After seeing the difficulty in breaking into blockchains, crypto wallets, and exchanges, as well as convincing people to dupe them of petty sums, scammers have seen an opportunity in ICOs.
What they do is edit whitepapers of successful projects.
Once they are done, they create an online presence on Facebook, Twitter, and Instagram as well as communities on Discord and Telegram.
This adds credibility to the project.
Once they receive the necessary funding from investors who believed in the project, they take off and leave investors with little to look forward to in terms of gains.
Do not leave the assessment of crypto projects in the hands of security agencies.
The internet has made it easy to find information about projects. You can go through the pros and cons of investing in a particular project (such as ApeCoin) on more than five (5) platforms to get an extensive look at the project.
Once done, you would be in a position to determine whether or not you should invest in ApeCoin.
Do not throw huge sums of money behind any project until you see the support of established players in the crypto finance space attached to the crypto project.
Crypto Pump and Dump Schemes
A pump and dump scheme is the most common method used to dupe traders and investors.
It has existed for years and has led to losses of millions of dollars to unsuspecting traders and investors.
Pump and dump is where criminals boost the price of a digital currency through misleading information or exaggerated statements for their gains.
Once the price reaches their goals, they sell off their entire holdings.
Once this happens, the basic laws of demand and supply take over the market.
Once the supply is greater than demand, the price falls, and this leads to irrecoverable losses for many investors.
You may have witnessed it but may not have realized that some of the messages found online are pump-and-dump.
Posts such as ApeCoin is going to the moon, ApeCoin is heading north, and APE to reach $1,000 in the short term by individuals are signs of pump-and-dump.
Other messages such as invest in ApeCoin and HODL and posts urging you to invest in any cryptocurrency are signs of people pumping the price of a digital asset.
What you may not know is that they may have a stake in a particular cryptocurrency.
Once that price is tested, they sell off their holdings and move on to another cryptocurrency.
Editor’s Advice: Once someone posts a comment online without supporting it as to why, when, how, why, and what is about to happen for such a valuation to be tested, these are warning signs. Whatever happens, the internet has provided a library of information about every aspect of the crypto finance space.
Read extensively about projects before risking your funds.
Don't Miss: How To Make (Or Lose) Money With ApeCoin
How To Keep Your ApeCoins Safe
Finding a good place to buy APE is one thing and finding a good place to keep your ApeCoins safe is another.
This is why you need to go through all the cryptocurrency exchanges that support APE.
As of writing, there are around 43 exchanges that list the token for trading.
Some of them are eToro, Binance, Crypto.com, Coinbase Pro, Gate.io, BitMart, Kucoin, Kraken, and OKX.
Among them, we settled on eToro based on factors such as they support a range of payment methods, have low fees, have great customer service, is highly regulated, and have an awesome reputation.
More importantly, eToro is highly secure and is a great platform for storing your APEs in a custodial wallet.
If you are not satisfied with holding your APEs online, you can use TrustWallet, and MetaMask to keep your APEs safe.
Do not be sold into exchanges that promise a huge registration bonus.
Invest in APE through mainstream crypto exchanges.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
ApeCoin Security Versus Privacy
Security and Privacy are two terms you should not ignore when it comes to your APE holdings.
Many people may not know but there is a difference between Privacy and Security when cryptocurrencies come to the discussion board.
Before we delve into this, you should know that although they are used interchangeably, ApeCoin is the protocol, and APE is the cryptocurrency.
Privacy is linked to the ApeCoin protocol and Ethereum blockchain. ApeCoin is housed in the ecosystem of Ethereum.
Blockchain technology helps in the creation, storage, distribution, and trading of cryptocurrencies.
With blockchain, you can send, and receive APE without the help of third-party institutions such as central banks, clearinghouses, and insurance companies.
Although transactions are available in a public ledger that can be viewed by billions of people, your real identity will never be revealed.
Security is linked to the APE token (cryptocurrency).
Two people can guarantee the security of your ApeCoins.
They are representatives of the cryptocurrency exchange that holds your APE and you (as a crypto wallet holder).
Suppose your preferred cryptocurrency exchange is hacked by a third party and the person takes off with all coins.
It is not your fault that the coin has been lost but they are gone.
In such a scenario, you would have to blame representatives of the exchange for not having the necessary security encryptions to guard your coins.
Therefore, security is in the hands of cryptocurrency exchanges.
On the other hand, if you choose to hold your APEs in a crypto wallet (let us say TrustWallet), you are liable for whatever happens to your tokens.
When you create a wallet, you would be given random words (minimum of 12 and maximum of 24).
They are arranged in a particular order.
Once you lose your passwords (or as popularly termed private keys), you lose access to your holdings.
Since it is almost impossible to guess these words, they can only be found based on carelessness on your part.
Editor’s Advice: If you want extreme privacy in your online transactions, then we would not recommend APE.
You can use privacy coins such as Dash (DASH), Zcash (ZEC), and Monero (XMR).
Read Also: 14 Reasons Why You Should Invest In ApeCoin (APE) Today
The Bottom Line ― So, Is ApeCoin (APE) A Safe Investment?
ApeCoin has been certified as a safe investment by several analysts and experts. ApeCoin has a 95% score by security firm CERTIK which means it is extremely safe.
Aside from that, ApeCoin is the first cryptocurrency to be listed by all the major exchanges on the same day of its launch. Ordinarily, it takes months for a thorough assessment to be done on the potential of a cryptocurrency.
ApeCoin gaining approval from Binance, Coinbase Pro, OKX, Crypto.com, and more importantly eToro means you can invest in ApeCoin knowing the project would not go bust.
Using well-regulated cryptocurrency exchanges to buy APE guarantees the coin's safety.
Open an account with eToro, deposit some funds with USD, and finally – buy ApeCoin from just $10.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Read More:
Could ApeCoin Be A Millionaire-Maker Coin?
Why We Think ApeCoin (APE) Could Be The Next Big Thing