2026-01-01 19:30:14

What is the risk difference between mainstream coins and altcoins? An in-depth explanation

Recently, the topic of "Altcoin Season" has been quite popular in the forums, with many discussing whether these types of coins can ride the wave upward. Indeed, altcoins can experience explosive gains during certain market cycles, but the issue is—such gains are often accompanied by extreme risks.

You may have also noticed that in this round of market movements, many altcoins have shown bizarre candlestick patterns: a 200% surge in one day, only to fall back to the original level the next day, and in some cases, extreme situations where both bulls and bears are wiped out. Why does this happen? To be straightforward, many altcoins fundamentally lack support from solid fundamentals. Their trading logic is extremely simple—it’s just a matter of capital betting between the whales and retail investors.

The entire process is quite routine: the whales first accumulate at low levels, then push up the price to create a profit-making effect. Retail investors see the increase and rush in, and once enough new buyers have entered, the whales start to distribute. Once the dump begins, latecomers often have no chance to escape—because trading volume rapidly shrinks, and limit-downs happen one after another. Many people get trapped at high levels, unable to move.

The cruelest part is that novice traders often only realize they’ve been duped at the high points, then hold on with the mindset of "Anyway, I’ve lost everything, maybe I can turn it around someday," but the outcome usually ends the same.

So rather than complaining about the brutality of altcoins, it’s better to understand one thing: the game rules of these assets are inherently unfriendly to retail investors. Moderate participation is fine, but if you’re betting your entire fortune? That’s no longer investing, it’s gambling. Mainstream coins have at least some fundamental support for their volatility, while altcoins are purely driven by popularity.

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OfflineNewbie

· 4h ago

It's the same old story, how many times has the dealer's script been played out --- Those who buy at high levels are people like me, no problem --- After a 200% increase, it drops back to the origin, truly incredible, every time I catch this good show --- Anyway, since I've already lost, I might as well hold on, maybe tomorrow will be a miracle --- Mainstream coins are not necessarily safe; they can still be smashed to pieces --- That's why it's called the leek season; we are the ones being cut --- The words are quite clear, but when it comes to the market, who still remembers --- You should have bought in at the low point when accumulating, instead of waiting for a rally, serves you right --- Retail investors bet against the dealer; winning or losing is just fate --- Those reading this article haven't been cut enough yet

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governance_lurker

· 7h ago

Here comes the routine of cutting leeks again, I'm already tired of it This wave is really fierce, brothers, don't be greedy Altcoins are just the playground of the whales, retail investors become ATMs I've seen too many people get rich overnight only to return to the starting point the next day Betting your life savings is asking for death, you need to recognize this Mainstream coins at least have a story to support them, this thing is purely gambling on human nature Newbies always realize at the high point, it's a tragic story Rather than dreaming of turning things around, it's safer to hold some mainstream coins This is a gamble, not an investment, quite straightforward You can't escape the daily limit-up, only those who have experienced it know the fear Honestly, it's still greed that causes trouble, should reflect on it

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RektCoaster

· 7h ago

Haha, here we go again. I just want to ask, why do some people never learn this lesson? --- Stop talking about it. My friend got caught like this last week, and he's still sleepwalking. --- Basically, it's a buffet for the leeks, with the market makers not even needing to move their shovels. --- At least mainstream coins have someone guarding them; altcoins are just gamblers' playgrounds. --- Every time it's said like this, someone still rushes in. Truly incredible. --- I think, 99% of people simply can't tell the difference between investing and gambling. --- A 200% increase is indeed exciting, but that feeling of falling back to the original point... uh... my wallet can testify. --- Newbies all want to turn things around, but end up changing their identity—from retail investors to negative holders. --- Looking at the K-line chart so bizarre, you should realize how messy this is. --- Fundamentals? Where do altcoins get their fundamentals? All just hype.

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DaoGovernanceOfficer

· 7h ago

honestly the liquidity mechanics here are just *chef's kiss* terrible. according to basic market microstructure research, these altcoin pumps literally lack the depth to sustain any exit velocity once whales dump. it's just voter apathy on steroids but with token weights lmao

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OnchainArchaeologist

· 7h ago

Basically, it's just big players playing the trick of harvesting retail investors. We retail investors can only take the hit with no other options. It's always like this. How can those who buy in at high levels expect to make money? Betting everything on fake coins, no wonder they end up losing all their capital. Anyway, I will never touch those suspicious K-line coins again. Although mainstream coins rise slowly, at least I don't feel anxious inside.

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