What Are the Risks of Trading a Low-Liquidity Altcoin with a Very Wide Bid-Offer Spread?

The main risks include high transaction costs, significant slippage, and difficulty exiting a position quickly. A wide spread means the immediate cost of trading is high, and a large sell order could crash the price due to lack of depth in the order book.

This illiquidity risk makes the asset vulnerable to price manipulation and "pump and dump" schemes.