Everything has its own risk and I don't think anyone entering crypto doesn't know that it's full of volatility. In a way, it's similar to buying penny stocks in the stock market due to the wild swings. Just do your research and make sure you are up to date with the people shilling the project and hating the project. It's better to know both sides before making a decision.
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Yes, when people buy penny stock, they expect a big move. They think it would be easier to make money quickly investing there. I like the way your draw similarity between penney stock and cryptos especially initial thoughts that comes to newbies mind.
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