Is Quant (QNT) Token Safe?

Last Updated February 8th 2022
7 Min Read

Speculative investors are always in the hunt for high-value crypto assets, especially those with a real and massive potential for further uptick - but so are cybercriminals.

 In 2021, for instance, Chainalysis notes that cybercriminals received more than $14 Billion - much of it gained through the rising cases of DeFi scams, hacking, ransomware, and others forms of crypto fraud.

Like most other cryptocurrencies, Quant tokens are exposed to multiple risks not only because it is traded in online exchanges but also because much of it is stored in hot wallets. In the recent past, the token has also been picked by the DeFi ecosystem, where it is staked and lent on investment dApps.

Overall, different crypto crime tracking organizations have reported that the amount of investor capital lost to cybercriminals has been on an uptrend since the popularization of the crypto industry in 2016. For the longest of this time, these losses had been domiciled around hacking. But as the 2021 crypto crime report by both Chainalysis and CipherTrace revealed, cybercriminals now have their guns trained on the DeFi ecosystem.

Three years after its launch, there haven’t been any reported security cases about Quant Token. It has proved to be a relatively safe investment because even though it has been caught in volatile crypto market crashes, it has maintained an uptrend that has earned its earliest investors an ROI exceeding 9625.71%.

This, however, isn’t to say that Quant Token is free of risk. On the contrary, there are numerous risks associated with investing in Quant tokens. In this QNT investment guide, we will teach you about these risks and how they can be managed or avoided altogether.  

First, though, we go over what you need to know about Quant before buying your first token.

What To Consider Before Buying Quant (QNT) Tokens

Two of the most important safety factors that you need to consider before buying your first Quant token are; QNT is a massively volatile asset, and you have the biggest role to play in keeping your crypto safe.

To understand how volatile Quant token prices can be, you only need to look at its price action in 2021. In the two weeks between 20th May and 4th June, QNT token prices jumped 250%. It would repeat this surprise uptrend in the first 10 days of September when it went up by 230%. But these volatile price movements aren’t always uptrending because 10 days after this peak price, QNT had shed more than 40% of this value.

Simply put, Quant tokens have the tendency of rallying upwards or downwards wildly and in a short period of time. It, therefore, shouldn’t come as a surprise to you if the token gains or loses value by double-digit percentages in hours or a few days.

You should also understand that the choice of your digital wallet and crypto exchange plays the biggest role to play in determining the safety of your crypto assets. How? You might ask. Well, take this, for example, you are more likely to lose the Quant tokens stored in an exchange or in hot wallets than if you stored the same in a reliable hardware wallet.

Read Also: Quant Price Predictions

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 Quant (QNT) Token Investing?

There are several risks associated with investing in Quant tokens, but the two most common have to be volatility and hacking.

Volatility is the most common, and it is also unavoidable. The best you can do is learn how to manage it and avoid losing money from volatile downtrends in QNT token prices. On the upside, though, losses to volatile QNT token price dips are only temporal and will almost always price-correct and get you back to profitability after a few months, sometimes years, of HODLing. This is to say that you will only lose money when if you sell the dip.

The second most common and the most perilous challenge to investing in Quant tokens is hacking. This could be the hacking of a crypto exchange account, hacking of the digital wallet holding your coins, or a DeFi investing dApp where you have staked your QNT tokens. Unlike the loss of investment to volatility, which is temporary, losses to hackers are fixed, and there is little to no recourse to this since most crypto exchanges and wallets aren’t insured.

Other Types Of Scams To Look Out For

Rug pulls

Rug pulls are increasingly becoming a major cause of concern for crypto investors. In 2021, for instance, Chainalysis reports that more than $2.8 Billion was lost in rug pull scams. These are especially common in the DeFi ecosystem and involve crypto developers creating what seems like a legitimate crypto investment project, but as soon as everyone pours funds into it, they drain the pooled funds from the crypto project and vanish into thin air.

Crypto pump and dump schemes

In a classic pump and dump scheme, crypto experts start by providing legit analysis and actionable trading information about a token. Some will even start by providing winning trade signals. But as soon as they gain influence over that token’s community and are able to influence its price action through their opinions and signals, they start spreading misinformation and biased analysis with the aim of profiting themselves and their cronies. They will, for instance, take a major short position against the token, spread misinformation aimed at triggering a sell-off before selling the dip and leaving everyone else holding the bag.

How To Keep Your Quant (QNT) Tokens Safe

Even though there is an insurmountable level of risk associated with investing in cryptocurrencies like Quant token, there still are several steps that you can take to minimize or eliminate some of these risks.

For instance, you greatly reduce the chances of losing your QNT token to hackers if you keep them in a reliable hardware wallet that stores their private keys offline. It is important that you never leave your crypto assets. QNT tokens or otherwise, in an exchange or in a hot wallet.

You could also eliminate the risk of being duped into making costly trading decisions by rouge analysts when you do your own research. Do not trust crypto “experts” blindly. Rather, invest time in market research before you make trade decisions and double-check your sources if the trade involves significant sums of capital.

Most other crypto scams are also avoidable, and in most of these cases, all you have to do is tame your greed. In the case of rug pulls and Ponzi schemes, the rouge developers and investors are usually only able to draw in their victims by promising higher than average returns on their investment.

In addition to these, you also need to keep tabs with crypto crime reports from the likes of CipherTrace and Chainalysis, as well as regulatory agencies like the Federal Trade Commission (FTC). These not only publish regular crypto statistics but also keep their readers updated on both the most common and emerging crypto scams and share tips on how to detect and avoid them.

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Bottom Line: Is Quant (QNT) Token A Safe Investment?

Yes, Quant has proven to be a safe investment in the sense that it has not only sustained an uptrend since its launch, but the Quant network has never been compromised. But, like all other cryptocurrencies, a QNT token investment is exposed to multiple risks - some are avoidable and others manageable. Before buying your first Quant token research the different risks that act on a QNT investment and research even further on how each of these risks can be avoided or managed. 

Overall, consider taming your greed when investing in crypto, learn to do your research, verify trade information and vet the self-proclaimed ‘experts’ and ‘crypto ‘developers.’ But even more importantly, invest in a reliable hardware wallet that stores the private keys for your QNT tokens offline.

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

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