Now many people prefer to invest money in projects in the early stages of development.
The demand for such investment is so high that appear projects that suggest investing in the seed and presale stages of different prospective projects to have the maximum profit.
This article describes such projects and investment in them -
https://medium.com/@CFS_Protocol/crypto-fund-syndicate-cfs-protocol-ead595f0b1dfIn the long term cryptocurrency market raises but not all altcoins. Many altcoins do not restore their price after falling market.
That is why many people sell their altcoins when market falls to fix the losses and not to lose more money.
A lot of depends how useful altcoin is for people.
If altcoin is useful and project will continue to develop even when market falls the price of altcoin will restore when cryptocurrency market will restore.