It seems like altcoin is having a good pump lately, many of the shitcoin has started to gain 100%
That's good and bad both to be honest. For them who have invested a lot of money in 2018 ATH, it's good for them but for newbie, this shitcoin may be destructive to your crypto journey unless you become very smart while investing.
One term I would like you to introduce is- "Liquidity"
I don't want to go in details here since the goal is to make you alert about low liquidity.
Liquidity is simple term refers to liquid your crypto asset into fiat or it can be BTC too. Since, most of the times we trade with BTC, I will go with BTC here.
High liquidity- You can sell your coin anytime as much coin you want, the market has enough buyer to buy your coin.
Low liquidity- There are no enough buyer to buy your coin.
You can check this easily in exchange. Just visit the market for a coin and check the buy and sell orders and the amount. If there are low buy orders despite a high sell order, this means you can barely liquidate your coins there.
SO, when you are going to invest in a coin, check the liquidity of that coin for a certain period. Otherwise, don't invest. Also, before depositing big amount in exchanges, check if there has enough buyer at your desired price to buy your coin. Scam exchange can attract you by pumping a certain coin in their exchange and once someone deposits a big amount, they scam.
The altcoin market is more complex then you can ever think of. There are thousands of ways of scamming you which you can never imagine, even after being scam, you can't realize that it was a scam. Before invest, be smart enough to learn the tactics and save yourself.Doing thorough research and observant will always be the key to be able not to get scammed and assure that the investment you will be safe with the assurance that it would grow into a desirable price you do want to have. Checking the liquidity of a certain coin in a right and legible exchange is really indeed a good help and point to always check with if you do want to liquidate your asset into Bitcoin or even other sort of cryptocurrencies. But as what I can observe, most people whenever doing trades mostly chooses to get into Bitcoin trading to be able to obtain Bitcoin. Checking the buy and sell order in an exchange will be a good help for you to decide whenever you want to liquidate your assets and help you to get into deciding if you will wait or get into trading your asset. Always check if the price movement in an exchange is legible because there are some cases that there is a glitch in the system wherein the shown price is too high but does not reflect in the market order.
Well indeed that Altcoin is more complicated other than the way we perceive or see it because there are lots of complications that happens within the Altcoin market so best thing is to be always observant to be able not to get scammed when doing important transactions with Altcoins. Also always remember to only invest amount you can afford to loose and not to always go all in.