Should I Buy ApeCoin In 2023? Pros And Cons Of ApeCoin Investment

Last Updated December 20th 2022

12 Min Read

The cryptocurrency market is rebounding, meaning the bottom could be in. This leads to the question, is this the right time to invest in ApeCoin?

Let's analyze in-depth to determine whether ApeCoin is a smart cryptocurrency investment today.

ApeCoin Analysis - An In-depth Look

9 Reasons Why ApeCoin Is A Good Cryptocurrency Investment

1. ApeCoin is associated with one of the most popular NFTs

ApeCoin shot in popularity primarily because of its association with the Bored Ape Yacht Club line of NFTs. The Bored Ape Yacht Club and the Mutant Ape Yacht club are two of the most exclusive NFTs clubs in all-time history. This makes them more valuable than your average NFTs collection in the market.

With the popularity of the Bored Ape Yacht Club set to grow, the popularity of ApeCoin is likely to increase as well.

However, it is not just about being associated with one of the most famous NFT collections. There is a symbiotic relationship between ApeCoin and the Bored Ape Yacht Club.

Whenever Ape Coin goes up in value, it also uplifts the sales volumes of the Bored Ape NFTs. The reverse also holds for most of ApeCoin's short history in the market. The demand for Bored Ape NFTs remains high due to various celebrity purchases and endorsements.

This makes ApeCoin a high-potential cryptocurrency to buy now, with good prospects for value growth going into the future.

If the relationship with the BAYC makes you believe ApeCoin is a smart cryptocurrency investment, then you are probably wondering where to buy it, right?

Well, you are at the right place. Check out some of the best exchanges where you can buy ApeCoin easily.

Binance
Coinbase
eToro

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. ApeCoin's market cap makes it easily visible to investors

Regarding cryptocurrency investing, high market caps tend to be advantageous. That's because the market is saturated with over 10k cryptocurrencies, and hundreds of them enter the market daily. The worst part is that a huge chunk of the new entrants are either outright scams or pump and dump schemes.

ApeCoin is one of the few new cryptocurrencies that have entered the market recently and gained a high enough market cap. While it launched in March 2022, in a few hours of trading, it had grown to become one of the top 40 cryptocurrencies by market capitalization, and it still retains this position.

Besides the visibility that it gives ApeCoin, this high market cap also gives ApeCoin an element of credibility in the eyes of investors. This means once investor confidence fully returns to the market, ApeCoin will be among the cryptocurrencies that investors will find attractive as investments.

3. ApeCoin is listed on major crypto exchanges

Where a cryptocurrency is listed matters a lot in attracting new investors. In most cases, new and sometimes scam cryptocurrencies are only limited to small exchanges with equally unclear backgrounds. For this reason, investors looking to commit lots of money tend to avoid new cryptocurrencies.

ApeCoin has a huge advantage on this front. When it launched, ApeCoin was instantaneously listed on all major cryptocurrency exchanges, from Coinbase, and Binance to eToro.

The effect is that despite being a new market entrant, ApeCoin gained credibility from the first day of trading. The same was reflected in its price at the time. Despite the bearish trend in the cryptocurrency market, ApeCoin was one of the best performing cryptocurrencies in March/April 2022.

The fact that it is listed on all major exchanges could continue to play into ApeCoin's advantage. The market is bearish, but analysts are optimistic that the bottom is in or close.

For instance, according to data by Glassnode on Bitcoin chain analysis, long-term Bitcoin holders are no longer selling their BTC. That's despite most of them now at a loss of over 30%. This indicates that they have confidence in the market making a rebound.

If the bottom is in, ApeCoin is among the altcoins most likely to benefit from new investments. It is a popular altcoin that is easily accessible on all major exchanges.

Secondly, it is currently trading at massive lows compared to its most recent highs of $26. Investors looking to make money on the rebound have an easy target in ApeCoin, a factor that could make APE one of the most undervalued cryptocurrencies at current prices.

4. ApeCoin Reserve Risk Points to an undervalued asset

If you are new to cryptocurrency investing or the financial markets, you probably have never heard of reserve risk. However, it is one of the essential metrics before investing in cryptocurrencies.

So, what is reserve risk, and how can you use it to determine if ApeCoin is a good cryptocurrency investment?

Reserve risk is the correlation between an asset's price and investor confidence. Usually, when investor confidence is higher than the price of an investment, it is an excellent pointer to that asset's future. That's because it means investors perceive it as undervalued. The flip side of it is true, too.

You can use a cryptocurrency's daily volumes to gauge investors' confidence in it. In the case of ApeCoin, trading volumes have remained high on major exchanges despite the price going down. It's an indicator that investors expect ApeCoin to do well even though market factors have bogged it down.

Considering that the market could be close to the bottom after months in the red, ApeCoin is one of the most undervalued top 50 cryptocurrencies to buy now.

That's because as long as the investor confidence remains high, all it would take is a few days of consecutive price gains for FOMO to kick in and send APE to new highs.

Don't Miss: ApeCoin (APE) Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

5. ApeCoin is part of the Ethereum family

In the last few years, there has been a surge in Ethereum competitors, many of them offering better metrics such as scalability and low fees. However, the Ethereum ecosystem continues to grow, and Ethereum-based tokens like ApeCoin have the edge over tokens housed in the Ethereum competitors.

One of the advantages that ApeCoin gets from running on the Ethereum blockchain is liquidity. Besides the conventional centralized exchanges, a lot of cryptocurrency trading goes on in decentralized exchanges. All the best-decentralized exchanges in the market today, ranging from Uniswap to Sushi Swap, run on the Ethereum blockchain. That's a plus for ERC-20 tokens like ApeCoin.

At the same time, multiple stablecoins run on the Ethereum blockchain. This further means that investors can easily trade ApeCoin for any of them, making it even more liquid and an attractive asset for investors.

Some of the largest cryptocurrencies in DeFi also run on the Ethereum blockchain. This means there are loads of opportunities for investors to invest in their ApeCoin and earn a passive income.

Clearly, being an ERC-20 token makes ApeCoin one of the best cryptocurrencies to invest in today. The advantages that the Ethereum blockchain confers upon ApeCoin are augmented by the fact that ApeCoin is popular in its own right, thanks to the Bored Ape Yacht Club.

6. ApeCoin is now in the fast-growing Metaverse space

Back in April, ApeCoin rallied on news of the Otherside Metaverse. The FOMO around the Otherside Metaverse saw ApeCoin rise to become the largest Metaverse cryptocurrency.

While the price has since dropped, the Otherside Metaverse still gives ApeCoin an edge as one of the best Metaverse cryptocurrencies in the market today.

This is a big deal considering that the Metaverse is one of the areas in the cryptocurrency market expected to record the most growth going into the future. Some analysts even expect the Metaverse to be worth trillions of dollars by 2030.

As one of the most popular Metaverse cryptocurrencies, ApeCoin's opportunities for growth are pretty much limitless. For instance, the Metaverse is gaining adoption in the video games space, and the likes of Axie Infinity are leading the way.

With Yuga Labs expected to get into video games through the Otherside Metaverse, ApeCoin is set to give Sandbox, Axie Infinity, and other Metaverse cryptocurrencies a run for the money. It makes ApeCoin one of the top Metaverse cryptocurrencies to invest in today in preparation for a surge in demand for P2E gaming.

7. ApeCoin has the community advantage

Hundreds of new cryptocurrencies are launched daily. Many with great tech never gain much traction in the market, though. That's because they don't have a large enough community to drive awareness in the market.

In a market as saturated as crypto, the community is everything. Those with strong communities from the get-go tend to thrive regardless of the strength of their use cases in the initial stages.

To get an idea of how important the community is, consider that Shiba Inu, a meme coin, went from being a joke to giving investors gains of over 48,000,000% in under a year of launch.

So, how does ApeCoin fair when it comes to community backing? Well, ApeCoin is one of the few cryptocurrencies with strong community backing right from when it hit the market.

This was all thanks to its association with the Bored Ape Yacht Club (BAYC) line of NFTs. The BAYC has been one of the most popular NFTs for a while now, and when ApeCoin went live, it instantly inherited the community.

With more investors now aware of BAYC and ApeCoin than ever, new money will likely continue flowing into the future. This is likely to influence the demand dynamics of ApeCoin positively. It makes ApeCoin one of the most undervalued NFT cryptocurrencies to buy at current prices.

8. ApeCoin's growth is still in its infancy

After all the hype around its launch, it is easy to wonder whether there are growth avenues for ApeCoin in the future.

The good news is that ApeCoin is not all about the hype. There are many growth avenues for ApeCoin that could see its value increase in the long run.

Already, ApeCoin has gained a use case as a payment method within the Otherside Metaverse. As the number of games in the Otherside Metaverse expands, so will the utility value of ApeCoin.

ApeCoin can also grow to become a standalone blockchain, further opening up its potential use cases for everyday payments. Essentially, there are limitless ways that ApeCoin can gain utility value going into the future. This potential makes ApeCoin a smart cryptocurrency investment and one of the best new cryptocurrencies to buy now.

9. There is a lot of marketing going on for ApeCoin

ApeCoin is backed by people who believe in it, and want it to succeed. This is evident in the heavy marketing that surrounds this cryptocurrency. For instance, it first hit the market as an airdrop to holders of the popular Bored Ape NFTs.

Such promotions are likely to keep investors interested in ApeCoin. Add to that the fact that it has the backing of crypto heavyweights like Vitalik Buterin, and it's not hard to see why ApeCoin is a smart cryptocurrency investment when prices are still at massive lows.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Downsides To Investing In ApeCoin

No investment is foolproof, and ApeCoin is not an exception. It is essential to understand the risks involved to avoid getting caught off-guard if things go wrong.

Below are some of the risks you need to know when buying ApeCoin.

ApeCoin holders can't vote on Yuga Labs' decisions.

By holding ApeCoin, you don't make decisions at Yuga Labs, the organization that is behind the whole Bored Ape NFTs ecosystem. This means you are still operating in the periphery when investing in ApeCoin.

The risk is that if Yuga Labs makes unfavourable decisions, it could affect the value of APE tokens. While there is no incentive for Yuga Labs to do such a thing, it is still a risk you should consider.

ApeCoin is tied to Ethereum

Like all other ERC-20 tokens, there is a risk that if the value of Ethereum goes down, it could pull the rest of the market with it. Since Ethereum is a volatile cryptocurrency like any other out there, it is a risk that every ApeCoin investor should have in mind.

It is also why an investor should work on having a more diversified cryptocurrency portfolio. There are loads of high-potential cryptocurrencies that one can hold alongside ApeCoin, increasing the odds of long-term success.

Is ApeCoin A Good Investment Today?

If you have read this ApeCoin guide this far, then you are in a good position to decide whether ApeCoin is a smart investment.

Besides what we have discussed above, below are other factors to put into consideration when looking to invest in ApeCoin.

Choose a regulated and trustworthy cryptocurrency broker.
Once you have created an account with your preferred broker, make sure to use a strong password and 2FA. There are lots of sophisticated hackers who won't waste a chance to steal your crypto.
After you buy, don't leave your cryptocurrencies in the exchange. Withdraw them to a cold storage wallet.
Try and hold a diversified portfolio of cryptocurrencies to cut down on your total risk.

If you believe that ApeCoin is a good cryptocurrency investment today, let's now take an in-depth look at how to buy.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Where To Buy ApeCoin?

At Trading Education, we have invested in research to help you make informed decisions when investing in cryptocurrencies.

Now let's take you a step further and take you through the best brokers where to buy ApeCoin.

ApeCoin v Axie Infinity – Which One Is A Better Investment?

ApeCoin and Axie Infinity are among the best Metaverse cryptocurrencies in the market today. As such, it would be best to invest in both of them.

However, if you want to maximize your gains by investing in one of them, then ApeCoin is a better investment.

One of the key factors that make ApeCoin a better investment than Axie Infinity is the hype factor. ApeCoin started a lot of hype thanks to its connection to the Bored Ape Yacht Club. With the Bored Ape line of NFTs growing in popularity, the odds are that the hype around ApeCoin will also grow. This is likely to see ApeCoin outperform other Metaverse cryptocurrencies, including Axie Infinity.

ApeCoin also has the advantage of the perception of security. While it is a relatively new cryptocurrency, ApeCoin has never been hacked. On its part, Axie Infinity's sidechain was recently hacked, and more than $600 million was stolen. This is likely to skew investor perception when choosing between ApeCoin and Axie Infinity going into the future.

Considering these factors, it is clear that ApeCoin stands out as a higher potential altcoin relative to Axie Infinity. That said, cryptocurrencies are highly volatile assets, and it is best to bet on both cryptocurrencies.

Final Analysis - Is ApeCoin A Good Cryptocurrency To Buy Now?

The answer is yes. ApeCoin is one of the best cryptocurrencies to buy today.

ApeCoin launched with a lot of fanfare and became one of the best cryptocurrencies in Q1 of 2022. That’s despite launching deep in the cryptocurrency bear market.

The ApeCoin use case is growing as well. In April 2022, the Otherside Metaverse was announced, and ApeCoin is one of the cryptocurrencies that will be used for payments within this Metaverse. This is a huge case that will put ApeCoin on a pathway to value growth long-term.

The best part is that buying ApeCoin is pretty easy. One of the easiest ways to buy ApeCoin is through eToro. If you don't already have an eToro account, here is how to go about it.

Visit the eToro website and click signup. You will fill up a form with your basic information in a few easy steps.
Once you have created the account, eToro will ask you to upload verification documents. This stage shouldn't take long either.
After verifying your documents, you need to deposit money into your account. Anything from $50, and you are good to go.
Buy ApeCoin and any other cryptocurrencies of your choice.