LIQUID IN ALT SEASON!!!
Opportunity: Crazy Price Surge During altcoin season, the liquidity flowing into altcoins, especially those with small market capitalizations, can yield extraordinary profits. This happens for several reasons: Price Movement Triggers: As funds shift from Bitcoin to altcoins, the trading volume of altcoins increases rapidly. Since liquidity is initially low, even a relatively small influx of funds can trigger a very drastic and rapid price increase. This is often what makes some coins "explode" by up to 10x, 100x, or even more in a short time. Threat: "Rug Pull" Risk and Drastic Downturn Although the altcoin season offers great profit potential, low liquidity also becomes a double-edged sword that is very dangerous: Price Manipulation (Pump and Dump): Low liquidity makes altcoins very vulnerable to manipulation. Large investor groups or "whales" can easily buy coins in large quantities (pump) to drive up the price. Once the price rises and attracts small investors, they will sell all their coins (dump), causing the price to fall back down. Small investors who are late to exit will lose all their capital because there is no liquidity to sell their assets.
"Rug Pull" Risk: Many new altcoin projects are created during the altcoin season only to scam.
Because of the low liquidity, developers can easily pull all liquidity from the project (for example, from a liquidity pool on decentralized exchanges), causing the price of the coin to plummet to zero. Investors who bought the coin cannot sell it anymore because the liquidity has vanished.
#alseason $ETH
