Newly launched cryptocurrencies are prone to very high price fluctuations

Yes, this is a very important tip in the world of cryptocurrency trading. Newly launched cryptocurrencies can be prone to high price fluctuations, and this is due to several factors:

1. Low liquidity:

New currencies often experience low liquidity in the market, which means that it can be very easy for their price to fluctuate sharply due to small trades or moves by some whales (large investors).

2. High speculation:

After the currency is launched, many traders start buying and selling based on speculation rather than technical or fundamental analysis, which increases volatility.

3. Marketing and exaggerated expectations:

Many new projects may be overhyped, and there may be big promises that have not yet been fulfilled. This can lead to the price of the currency being pumped up at first and then dropping sharply when the truth becomes clear.

4. Lack of technical stability and continuous development:

The new currency may need further development or may face technical problems, which can lead to a decrease in investor confidence and thus a decrease in the price.

5. Negative news or rumors:

Since these projects may be in their early stages, they are more susceptible to negative news or rumors that may lead to a collapse in the currency price.