How smart is it to buy it?
Cryptocurrency Phantom has added 7,000 percent since January of this year, surpassing the growth of digital currency Dogecoin. The resource CoinMarketCap stated that Phantom reached its high of $1.93 U.S. dollars first in September. Thus, if you had purchased this cryptocurrency at the very beginning of the year for an amount equal to $100, your net income would have exceeded $10,000.
Despite some decline in the price this week, nevertheless the growth since the beginning of August exceeded 300% this is primarily due to the fact that investors are looking for an affordable alternative to the second most popular cryptocurrency, Efirium.
So what makes Phantom cryptocurrency so popular?
The number one reason is Smart Contracts, this cryptocurrency supports the creation of Smart Contracts based on its blockchain. Thus, Phantom can be used to run some mobile applications or programs.
Today, Smart Contracts are very important to use in the DeFi industry. This industry is convenient because the banking system is no longer a necessary link for financial transactions.
For example in the background of DeFi it is possible to use automation systems, in which a number of transactions will be carried out automatically, for example, automatic payment in insurance cases or an automatic system of return of the deposit after the payment of the loan.
Also now a popular direction NFT tokens, it is a very popular direction, which has in its basis a smart contract. Creator, copyright information is already included in these tokens. The industry is growing fast and sometimes you can find digitized works of art for as much as $100,000 million per unit. They are also widespread in the sports sphere, for example, digitized sports cards.
This year also saw a major announcement of an agreement reached with Fireblocks , a platform that secures several hundred billion dollars worth of digital assets.
That same month, Coinbase added the cryptocurrency Phantom to its FTM list, despite the fact that this token is currently not available for listing on the Coinbase exchange. However, FTM can already be seen on several other well-known cryptocurrency exchanges.
Also, Phantom is currently developing its own project in a number of countries such as Pakistan, Afghanistan and some others.
So is it worth to buy this cryptocurrency now?
It is known that the side of cryptocurrencies is quite desirable and almost unpredictable, so investing in cryptocurrency always has a large share of risk. There is a particular risk in buying cryptocurrencies, for example at the price of 1.92, as it happened with Phantom last week. There is a strategy where small periodic purchases every week or every month are preferred.
The main rule of investor is to invest an amount that you do not regret to lose and to buy for the long term. When you buy cryptocurrency, you should look at its growth in next 5-10 years, so you will not be very disappointed by short-term drawdown of this asset.
When buying a token Study its features, read its technical documents and do a comparative analysis.
What can affect Phantom’s price drop?
Indeed, this project is quite strong and has a lot of potential, however, there are a number of features that may affect the fall in the price of this currency.
At the first place is in the increasing regulation of cryptocurrencies around the world. This is a widespread trend, in particular, North American authorities are very wary of cryptocurrencies and try to resist it in every possible way. The main reason is seen by banks as the lack of customer protection. Anyway, sooner or later it will lead to some restrictive measures, which can indirectly affect Smart contracts.
Phantom projects are also in Afghanistan, where there is a change of power, and it is not clear what policy the new government will choose, but it is already clear that there will be some significant changes.
A number of technical difficulties may arise when the number of transactions increases, only after some time we will be able to see how the growth of operation will affect the scaling of this project.
As the value of this cryptocurrency is also tied to its older competitors, in general, the cryptocurrency market has a general trend of either decline or growth. For example, Bitcoin has a huge impact on the entire cryptocurrency market and its decline also drags other tokens down with it.
We are looking at the long-term growth of cryptocurrency Phantom, but, don’t expect to make 7,000 percent profit in the last month.