Why are low float cryptocurrencies considered high-risk investments?

7 answers

• Bipanshu KumarFeb 27, 2023 · 3 years ago
  Low float cryptocurrencies are considered high-risk investments due to their limited supply and high volatility. With a low float, there are fewer coins available for trading, which can lead to significant price fluctuations. Additionally, these cryptocurrencies often have a smaller market capitalization and lower trading volume, making them more susceptible to manipulation and price manipulation. Investors should be cautious when investing in low float cryptocurrencies and carefully assess the associated risks.
  517

  259
• Apex SMO benefitsOct 14, 2020 · 5 years ago
  Investing in low float cryptocurrencies can be risky because of their limited liquidity and higher potential for price manipulation. Since there are fewer coins available for trading, even a small buy or sell order can have a significant impact on the price. This makes it easier for market manipulators to influence the price and create artificial volatility. Investors should be aware of these risks and consider them before investing in low float cryptocurrencies.
  467

  156
• blsgJul 06, 2022 · 4 years ago
  Low float cryptocurrencies are often considered high-risk investments because of their limited supply and higher price volatility. These cryptocurrencies typically have a smaller circulating supply, which means that any significant buying or selling activity can have a substantial impact on the price. This can lead to sudden price swings and increased market volatility. It's important for investors to carefully evaluate the risks associated with low float cryptocurrencies and consider diversifying their investment portfolio.
  530

  133
• Aakash SandalMay 03, 2023 · 3 years ago
  As a third-party expert, I can confirm that low float cryptocurrencies are generally considered high-risk investments. The limited supply and lower trading volume make these cryptocurrencies more susceptible to price manipulation and sudden price swings. Investors should exercise caution and conduct thorough research before investing in low float cryptocurrencies. It's also advisable to diversify your investment portfolio to mitigate potential risks.
  454

  91
• Armstrong VazquezNov 19, 2025 · 3 months ago
  Low float cryptocurrencies are often seen as high-risk investments because of their limited availability and higher price volatility. Due to the smaller number of coins in circulation, any significant buying or selling activity can have a substantial impact on the price. This makes low float cryptocurrencies more susceptible to price manipulation and sudden price swings. Investors should carefully consider the risks involved and only invest what they can afford to lose in these high-risk assets.
  500

  84
• HANIS KHAIRINA MUHAMMAD RUSDANJan 26, 2026 · 20 days ago
  Investing in low float cryptocurrencies can be risky due to their limited supply and higher price volatility. The scarcity of these cryptocurrencies makes them more susceptible to market manipulation and sudden price changes. It's crucial for investors to thoroughly research and understand the risks associated with low float cryptocurrencies before making any investment decisions. Diversification and risk management strategies are also recommended to minimize potential losses.
  481

  69
• Bhavesh HaryaniMar 07, 2023 · 3 years ago
  Low float cryptocurrencies are considered high-risk investments because of their limited supply and higher price volatility. The scarcity of these cryptocurrencies makes them more susceptible to market manipulation and sudden price fluctuations. Investors should be aware of the risks involved and carefully consider their investment goals and risk tolerance before investing in low float cryptocurrencies. It's also advisable to seek professional advice and diversify their investment portfolio to mitigate potential risks.
  524

  66