Which Crypto to Avoid?
Feb 06, 2025Knowing which crypto to avoid can save you from potential losses. With so many options out there, it’s essential to understand crypto risk and security. We’ll highlight which crypto has fallen the most, the riskiest crypto, and those coins that are notoriously unstable. Also be sure to explore crypto risks and benefits.
Which crypto coin has fallen the most?
When it comes to volatility, some coins take the cake. For instance, coins like Terra (LUNA) and FTX Token (FTT) have seen dramatic declines over recent years. LUNA famously collapsed in May 2022, losing nearly all its value in a matter of days. Similarly, FTT plummeted following the FTX exchange's collapse in late 2022.
LUNA and FTX serve as stark reminders of how quickly fortunes can change in the crypto world. These are also extreme examples where LUNA’s companion UST stablecoin lost its USD peg, leading to the collapse while FTX was a massive multi-billion-dollar fraud ultimately leading to bankruptcy.
Key Takeaway
Numerous coins have lost 90% to 99% of their value during extreme crypto bear markets. Some projects are solid viable projects and others may have been abandoned, so many coins could claim the top spot for which crypto coin has fallen the most.
What is the riskiest cryptocurrency?
Identifying the riskiest cryptocurrency can be subjective, but meme coins are prime examples of high-risk tokens because they are “culture coins.” These tokens often lack a technology value proposition and rely heavily on social media hype and speculative trading. At the same time 97% of meme coins fail but 3% have been wildly successful and may accrue value in the long term. The potential for massive gains is enticing, but so is the risk of significant losses—making them some of the riskiest investments you can make. (If you're just getting into crypto, find out which crypto is best for beginners.)
Key Takeaway
Don’t assume price volatility is the same as the riskiest cryptocurrency. Bitcoin, for example, has had extreme volatility since 2009, but it dominates crypto market cap greater than 50% while seeing massive adoption by publicly traded companies, financial institutions and governments.
What is the most unstable crypto?
In terms of instability, any crypto could take the top spot as the most volatile coin at any moment. The most unstable crypto is not a one-time thing, but rather a moving target and an unanswerable question. The most unstable crypto today could be different this afternoon.
What is the most fluctuating crypto?
The ability to track the most volatile cryptocurrency daily is crucial for traders looking to maximize their gains while managing risks effectively.
Bitcoin (BTC) and Ethereum (ETH) prices, for example, can swing dramatically within a single day due to various factors, including market sentiment, regulatory news, and macroeconomic influences. For instance, on January 15, 2025, Bitcoin's price fluctuated between approximately $96,400 and $99,800 in just a few hours, showcasing its potential for rapid changes. Ethereum also demonstrated similar behavior, with its price ranging from around $3,185 to $3,352 on the same day.
Key Takeaway
The BTC and ETH price fluctuation examples are not significantly different than stock markets, FX markets, or any other market around the world. Crypto market dynamics are like any other market; however, many tokens do exhibit more extreme fluctuations.
Users often seek out the most volatile crypto on Robinhood to capitalize on rapid price movements. Binance, for example, has published information so investors know what is the most unstable crypto on Binance. The activity on Robinhood or Binance won’t be very different than crypto volatility or price action on any other trading platform.
Navigating crypto risks
It’s important to understand crypto volatility is relative and part of the game of all markets in the world. Coins like Terra (LUNA) and FTX Token (FTT) highlight the risks of dramatic declines. Meme coins, driven by social media hype, makes them some of the riskiest investments. While Bitcoin and Ethereum experience daily fluctuations, they remain dominant in market cap. By balancing risk with knowledge, you can protect your investments and capitalize on opportunities.
