Many beginners are tempted by the hundreds of times increase in certain cryptocurrencies, but the hidden risks behind them are often overlooked. Why are altcoins so dangerous? Simply put, the market cap is too small, and there aren't enough trading counterparts. When you want to cash out, you may not find enough buyers, which is a liquidity trap. Even more frustrating, for coins with limited controlling funds, the manipulators' costs are low. You think the price is being pushed up, but in reality, it's being repeatedly shaken out—getting caught in the market, stop-losses being swept, and rebounds being crushed again. Some even monitor large holders' on-chain positions to precisely decide when to push the price up.
In contrast, why are mainstream coins like BTC, ETH, and XRP worth paying attention to? They have sufficient market depth and liquidity, making it harder for retail investors to be manipulated unilaterally. The reason SOL's growth potential is considered promising is that it has already become a mainstream choice in the public chain sector, supported by enough market consensus. To achieve stable growth, instead of chasing unrealistic hundreds of times gains, it's better to focus on mainstream coins that have been tested by the market and have practical applications. This way, you can avoid being cut like a leek.
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NonFungibleDegen
· 12h ago
honestly this hits different when you're already down 60% on some random altcoin you ape'd into at 3am... the liquidity trap is real ser, probably nothing but also everything lol. already learned this the hard way so now i'm just copeing with sol and eth, still bullish tho ngl
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NFTDreamer
· 12h ago
It's the same theory again, but to be honest, you only understand it after being shaken out of your position.
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WalletAnxietyPatient
· 12h ago
Basically, it's greed, always thinking about getting rich overnight, but ending up in poverty overnight.
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The friend I know did just that, all in on altcoins, and he's still trying to get out of it.
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The name "liquidity trap" is perfect; it's easy to get in but hard to get out.
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With a small market cap, manipulators can do whatever they want. Isn't that a casino?
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BTC and ETH can make money even while sleeping, so why bother with those risky assets?
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I've seen too many stories of "hundreds of times" turning into "tens of times," and I'm scared.
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SOL is indeed good, but timing is key; don't chase the high.
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Mainstream coins may not rise as sharply, but at least you can sleep peacefully.
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On-chain monitoring of large wallet positions—this is just precise leek-cutting, so dark.
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Retail investors should honestly hold mainstream coins; those dreaming of overnight riches are all leeks.
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ProtocolRebel
· 12h ago
Hundreds of times of dreams are all poison, really
Many beginners are tempted by the hundreds of times increase in certain cryptocurrencies, but the hidden risks behind them are often overlooked. Why are altcoins so dangerous? Simply put, the market cap is too small, and there aren't enough trading counterparts. When you want to cash out, you may not find enough buyers, which is a liquidity trap. Even more frustrating, for coins with limited controlling funds, the manipulators' costs are low. You think the price is being pushed up, but in reality, it's being repeatedly shaken out—getting caught in the market, stop-losses being swept, and rebounds being crushed again. Some even monitor large holders' on-chain positions to precisely decide when to push the price up.
In contrast, why are mainstream coins like BTC, ETH, and XRP worth paying attention to? They have sufficient market depth and liquidity, making it harder for retail investors to be manipulated unilaterally. The reason SOL's growth potential is considered promising is that it has already become a mainstream choice in the public chain sector, supported by enough market consensus. To achieve stable growth, instead of chasing unrealistic hundreds of times gains, it's better to focus on mainstream coins that have been tested by the market and have practical applications. This way, you can avoid being cut like a leek.