Why it is not recommended to buy alts

Alts refer to various tokens other than Bitcoin and a few mainstream cryptocurrencies. Although they have low prices and seem to offer a "get rich quick" opportunity, they carry multiple risks and are not suitable for average investors.

Investment Risk Analysis

1. Extremely high volatility
Alts have a small market capitalization and poor liquidity, making their prices extremely easy to manipulate. Daily fluctuations exceeding 20% are common, which could lead you to lose all your investment in a short period.

2. The quality of the project is concerning.

• Most alts lack real technological innovation

• The phenomenon of white paper plagiarism is serious.

• The team's background is unclear, and they may even be anonymous.

• Many projects will eventually "run away" or go to zero.

3. Regulatory risks are significant.
The regulatory environment for cryptocurrencies is constantly changing, and many alts have been delisted from exchanges due to non-compliance with regulations. Once liquidity is lost, the tokens you hold will be difficult to liquidate.

4. Market manipulation is common
The tactics of "pump and dump", false advertising, and artificially creating FOMO (fear of missing out) are extremely common in the alts market, making it difficult for ordinary investors to identify.

5. Lack of practical value
The vast majority of alts have no real application scenarios and are just speculated based on "concepts". Once the market enthusiasm fades, prices will quickly revert to their true value (usually zero).

6. The opportunity cost of investment is high
Investing funds in alts, if placed in safer assets like Bitcoin, has lower risk and more stable returns in the long run.

More rational investment choices

If you really want to participate in cryptocurrency investment, it is recommended:

• Prioritize mainstream coins such as Bitcoin and Ethereum

• Only invest funds that you can afford to lose

• Diversify investments, do not put all funds into a single asset

• Continuous learning, not swayed by market emotions

Remember, investing is a marathon, not a sprint. Pursuing steady growth is far more important than chasing short-term profits.

Do you have any other questions about cryptocurrency investment? I can help you analyze the pros and cons of different investment strategies.