risk could not avoided in this market, we will see it in any market not only cryptocurrency market only.
However, we can minimize the risk, one of the ways is to buy more trustable coins. You should already know that many people recommend buying top coins since they are proven to survive in crypto market for many years. The price changes of top altcoins are also easier to predict because we can see their price chart histories. While for new coins, they are not proven yet since they are just launched. We also cannot find the data like price chart history, to know its fluctuation.
Those factors adds up when choosing your investment, having data that you can read and study gives you enough knowledge whether to continue buying and holding the coin or if it's time to let go,
Either you are good with the profits or you need to cut your losses, the idea of choosing solid project are for those who don't wan to take the bigger risk, they can easily buy and hold those tops coins and wait till they see satisfying increase with their initial investment.
unlike with new coins there's nothing but luck, if the team behind do and keep their promise, then you are lucky to see good growth with the value but if not, consider it as you lose your money there's nothing that ou can do with it.