When you invest in ICO you will earn more money, but it is problem because ICO maybe will be a scam. When you invest in altcoins will be chance that this coin will cost very cheap and you lost your money.
Unfortunately a lot of newbies get fooled and they fall in the trap of this free money. They think they hit the jackpot because they will get free money for doing anything but in fact they are only working for free for scammers and they get paid nothing
I also think that there are many newbies who are impatient in investing in crypto currencies. What they think is that they only want to make a profit in a short time, even though as we know it is impossible to get instant profit in the crypto world. It requires hard work and patience, if you are impatient when investing we will easily panic to see the volatile crypto price movements. And this will make us suffer losses.
It is very risky to buy such tokens, liquidity is something that many people forget. For example, you can invest in crypto currency, watch how its value grows, and then find out that you can not sell it. If you try to sell large amounts at once, you will crash the price. Why? Because there is no liquidity. If a particular coin has a small volume of trades, then the price will fluctuate very strongly