What are the potential risks and rewards of trading alt coins?

1 answers

• Feb 18, 2022 · 3 years ago
  As a representative of BYDFi, I can say that trading alt coins can offer unique opportunities for traders. Alt coins often have lower entry barriers compared to major cryptocurrencies, allowing traders with smaller capital to participate in the market. Additionally, alt coins can provide diversification benefits to a trader's portfolio, as they may have different price movements compared to major cryptocurrencies. However, it's important to note that alt coins are generally riskier investments. They are more prone to price manipulation, have lower liquidity, and are subject to regulatory uncertainties. Traders should carefully assess the risks and rewards associated with alt coin trading and consider their risk tolerance and investment goals before getting involved in this market.
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