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Does the popularity of a cryptocurrency matter when picking your investments?
Key points
- Cryptocurrencies have become an increasingly popular investment.
- Some crypto traders are interested in seeing what other people are trading when making their own investment choices.
- The popularity of a cryptocurrency doesn’t necessarily correlate with its underlying value.
Recent studies revealed that more than 50 million Americans are likely to purchase cryptocurrencies soon. Cryptocurrencies have become an increasingly popular investment as many Americans learn more about virtual coins and become interested in potentially making money off the rising value of different cryptos.
When choosing a crypto investment, it’s tempting to focus on which coins have become popular recently and are making headlines. In reality, however, you generally shouldn’t care about the popularity of a crypto investment at all, and should consider other factors when deciding which coins to buy rather than which ones are being heavily traded at the time.
Here are a few key reasons why you shouldn’t care how popular a particular crypto investment is.