0x (ZRX) – Why should you wait before investing in 0x (ZRX)?

Spread the love

These days, whenever there is even a small rally in any of the cryptocurrency, the investors rush to invest in those cryptocurrencies for a long time. The problem is that many times, it is manipulative. If you invest in a cryptocurrency after every rally, there are increased chances that you might lose a significant amount of capital. 0x (ZRX) is one such cryptocurrency which has experienced multiple rallies. It, however, does not mean that you should invest in 0x (ZRX) at the current levels.

Why should you wait before investing in 0x (ZRX)?

Before we go into the investment decision of 0x (ZRX), it is better to understand what it has on offer. Once you know that, it is easier for you to take your investment decision.

0x (ZRX) is offering an open protocol. It is providing the protocol to create a decentralized exchange. Currently, it only supports ERC 20 tokens. It is a part of the Ethereum (ETH) blockchain which is actually limiting it. During the initial stages, it was created from the decentralized exchanges as well as the centralized exchanges. Thus, the features which it has on offer incorporate both of these types of exchanges. That is why it certainly holds potential.

One of the main reasons to avoid investing in 0x (ZRX) at the current level is because it supports only ERC 20 tokens. Once, the blockchain is get incorporated into it; it will become a full-fledged decentralized exchange solution. At that time, it will be worth investing. It can then scale up its presence in the usability of the blockchain by offering proper decentralized exchange services. Till that point in time, most of the rallies are just far ahead of the fundamentals. Hence, you should not think about investing in 0x (ZRX) at the current levels. Investing at the present levels is risky.

So, even though 0x (ZRX) might hold a lot of promise, it is essential for you to wait till the time the limit of ERC 20 tokens gets removed. Once, that happens, it will hold a lot of potential and can provide good returns to the investors. However, investing at the right price is pretty significant. You always have to avoid chasing momentum and instead invest on the basis of fundamentals.

About Riddhi 224 Articles
I am an electronics engineer and follow the crypto space closely.

Be the first to comment

Leave a Reply

Your email address will not be published.