Such altcoin assets are very risky for trading or holding. Although we can see some people making huge profits from altcoins that pump quite high, this does not happen with every asset. Some traders get too panicked when they see trends like that, and what happens is they buy during the pump and then can sell at a loss shortly after. Trading requires experience, especially when determining which assets to buy.
Altcoins aren't always a good option for trading because they aren't easy to understand their market. Their market don't have a long history to look at to be able to understand what might happen next. Altcoins are bought and sold more with emotions and this causes the pump and dump that we see in the market regularly. Buying altcoins can make you big gains in the future if the altcoins you bought gain attention but in a situation that it doesn't get noticed, you'll be left hodling an altcoins that's decreasing in price very fast. Buying at the top at times doesn't mean you aren't a good trader, you're a human being and mistakes happens to everyone.
Altcoins usually move in cycles too when bitcoin pumps many of them follow and when bitcoin dumps they fall even harder this correlation makes it difficult for traders to stay ahead because even if an altcoin has a strong project behind it the market sentiment tied to bitcoin still controls its movement. A lot of altcoin projects are created just to take advantage of hype with no real use case or future those are the ones that crash fast leaving late buyers with heavy losses research is important but even with research nothing is guaranteed in such a volatile space.
Some traders use altcoins only for short term trades riding the hype for a quick gain and then getting out before the dump others try to hold for years hoping one of their bets turns into the next big project but both approaches carry big risks.Thats why balance matters instead of putting too much money in one altcoin its safer to spread small amounts and still keep the majority in more stable assets patience and discipline are what protect you when emotions try to push you into chasing every pump.
In the end altcoins can be part of a portfolio but they should never be the foundation if you’re serious about building wealth in crypto focus on long term reliable assets and only put into altcoins what you’re prepared to lose completely because the line between big profit and total loss is very thin.