There are more than ten thousand crypto assets floating in the crypto market at present. All the other crypto assets apart from Bitcoin are known as altcoins. Bitcoin was one of the first attempts to create a decentralized digital currency. However, this asset had many drawbacks despite being efficient enough to challenge the existing traditional market.
Once the shortcomings of bitcoin were identified, the developers began creating various other blockchain-based digital assets that shall serve as an alternative to Bitcoin. Many altcoins have proven to be great investments over the course of time. There are many active investors who wish to buy cheap altcoins on the basis of their rankings in search of massive gains due to massive price movements.
However, as lucrative as the altcoin sector is, they also possess a few risks. Altcoins are generally considered high-risk as they can be easily manipulated by the market whales. The altcoins with low liquidity can also prove to be a hassle for the trader to get in and out of a trading position due to their low volume. There must be a proper risk management strategy in place to avoid such risks.