Before you buy a cryptocurrency, do your research. Make sure you're not buying something that has no value. The last thing you want is to be spending your bitcoins to buy a load of shit coins that dump bad.
There are some cryptocurrencies that really don't have much of a purpose. These coins are often very cheap. They get pumped, and then dumped.
So basically, someone would buy a lot of these cheap coins and then spread the news on social media that the coin will soon increase in value. People buy the coin in hope of making a good profit, and the price goes up.
However, once the price increases, the person who bought a large amount of these coins, then goes and sells them all at a higher price. The person makes a profit, but all the people who bought the coin along the way, make a huge loss when the price comes crashing down.
This happens almost everyday. There are hundreds of Telegram groups where this sort of coin pumps are initiated.
It's highly risky to buy a coin when it's being pumped. When the sell off starts, you may end up not being able to sell in time. You may become a bag holder of a worthless coin.
Avoid the stress and stick with coins that serve a purpose and are part of a well funded project with potential. Check out the developers, advisors, read the whitepaper, and view the road map.
Good luck!
