Types of Altcoins to Avoid with Caution (Not Investment Advice):

VC-backed Projects

Reason: These types of projects are often heavily influenced by venture capital, experiencing significant price volatility and may face the risk of capital outflows.

Coins with Limited Circulation

Reason: Projects with insufficient liquidity are difficult to exit, easily affected by market sell pressure, leading to increased price volatility.

Old Projects

Reason: Some projects that have been running for many years may experience slow development or lack of innovation, leading to decreased market attention and difficulty in achieving a new round of substantial increases.

Projects Not Listed on Mainstream Exchanges

Reason: Projects that have not been listed on major exchanges (like Binance) typically have poor liquidity and relatively weak market performance.

Non-Industry-Leading Projects

Reason: Non-leading projects have lower market recognition and insufficient competitiveness, often struggling to achieve significant performance during capital rotation.