Hey guys,
I've checked some intersting altcoins which are pretty cheap now, the projects look promising and legit but I'm still afraid that they could be another pump and dumps (there were so many of them already!). What are the signs or metrics that send alert signals about the projects and I should check deeper or not risk my money? Or is it just impossible to tell if it's another pump and dump scam project.
Pump and dump is only possible with low volume coins and that too on bad quality exchanges like yobit etc where most coins are just for the sake of pump and dump and they provide no real use case. To avoid such coins you should trade only genuine projects.
I wouldn't worry about pumps and dumps if you just invest in coins that aren't new. As early as of now, its best to grab a bag for the old coins we knew are likely going to blowup.
There are also coins with huge daily volume but the price still is less than $0.25, lots of them in the list on CMC. It can only mean these projects has genuine traders there with millions of volume like the ADA, NEM, TRX and XLM.
This is the thinking of an investor, an investor knows very well which coin is convenient for him to invest in. If you think like an investor, you too can take the right position in the market at the right time. It is important to have a good amount of volume in a coin because without volume it will not be easy to sell later. Good results can be expected from the market if you can find the best coins by investing in the market analysis.