INVESTING in cryptocurrency can be extremely risky if you’re not careful – and EOS is one example of that.
In the past 24 hours, EOS has dropped 2% to $3.86, according to Coinbase.
During the past month, the cryptocurrency has plunged 24%.
The recent unfavorable movement can be attributed in part to Beijing’s ban on all cryptocurrency transactions on Friday.
Along with China, there are many risks associated with cryptocurrencies you need to know before potentially buying.
Keep in mind that the cryptocurrency sector comes with complexity, so you need to understand what you’re investing in.
But most importantly – you could lose a lot of money quickly if you’re not careful in the extremely volatile space.
For instance, EOS enjoyed a high of $22.89 in April 2018.
If you bought the cryptocurrency then and held to this point – your investment would be down 83%.
What is EOS?
Founded in 2017 by Brenden Blumer and Dan Larimer, EOS launched trading in June 2018 after fetching $4.1billion from an initial coin offering.
EOS operates as the crypto token of the EOSIO platform, which is designed to allow developers to build decentralized apps.
These are digital applications or programs that exist and run on a blockchain or peer-to-peer network of computers instead of a single one.
The aim is to make it as easy as possible for programmers to embrace blockchain technology.
EOS is noted as a smaller rival to Ethereum, but it has one advantage – speed.
Specifically, EOS can reportedly process 2,800 transactions per second.
In comparison, Ethereum and Bitcoin can only handle 30 and about five transactions per second respectively.
Will EOS reach $20?
Although EOS has been on a slump lately – it can’t be ignored that it has had its moments.
As noted before, the cryptocurrency once surpassed the $20 mark in April 2018 but hasn’t gotten back to that point since.
It is also important to note that EOS skyrocketed to a high of $14.88 on May 12, up from the previous month’s high of $8.73.
To reach $20 again, the price of EOS would have to increase by more than five times.
Currently, there aren’t many bullish on EOS hitting $20 anytime soon.
Digitalcoin projects the cryptocurrency reaching $5.67 at the end of the year and does not see long-term upside of $20.
By 2028, Digitalcoin forecasts the price will reach $17.38.
Up until 2026, Coin Price is bullish on gains of up to $18.04. However, it expects some volatility to happen after that.
By the end of 2033, Coin Price sees the EOS just missing the $20 mark at $19.98.
But the price on this one will be tough, as forecasts could change if there’s a favorable trend.
Above all else, make sure you’re aware of the volatility that comes with EOS.
Myron Jobson, personal finance campaigner at interactive investor, told The Sun in May: “The asset is notoriously volatile – and for many investors, the price swings have been simply too wild to stomach.”
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