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The altcoin season or altcoin season is a period when alternative cryptocoins experience an increase in market performance due to increased prices and trading volumes. Altcoin or alternative coin is a term that refers to crypto assets other than bitcoin, such as Cardano, Polkadot, Polygon, Ethereum, etc. This term is used to distinguish bitcoin from other crypto assets because the market cap of bitcoin is almost 50% of the global crypto market.
The trend or “season” of altcoins is one of the cycles that occurs in the cryptocurrency market. In addition, there is also the bitcoin season where bitcoin dominates the crypto market.
These two seasonal terms are used during periods of upswing or in conditions where the crypto market is experiencing an increase in price and performance. Normally, these so-called “seasons” alternate, since price increases are not permanent.
What causes an off-season?
After a relatively high price increase, the price of Bitcoin tends to become more stable. As a result, investors will look for more profitable investment opportunities. They will start selling their bitcoins against Ethereum and other potential altcoins. This flow of investment eventually triggered the altseason that sent the entire bitcoin market down and gave rise to the alternative coin market.
Why is this cycle important?
Understanding the current cryptocurrency season can provide you with many opportunities to choose the right crypto asset. This season can be an important signal as to which cryptocurrencies will rise in price and which will fall or stagnate. This cyclical trend can help you determine which assets to buy at a low price and sell at a high price for a profit.
Also Read: Fear and Greed Index, Crypto Market Sentiment Indicator
For example, in bitcoin season, the price of altcoins will generally remain at stable levels or even decline. In this state, you can start researching to buy some altcoins that are going down or down in price. This phase can be an opportunity for you to acquire altcoins that have great potential in the long-term or even mid-term, peaking in the altcoin season.
Expiry of the altcoin season. Source: Nicolas Matusiak Medium.
In altcoin season, you can start selling some of your crypto assets that are seeing price increases. You can also hold (HODL) to wait and see if the price surge becomes the new support level (normal price) for the coin this altcoin season. If you hold a coin during the off-season, you are fully invested in the coin over the longer term.
Ultimately, the altcoin season offers you plenty of opportunities to capitalize on the growing market of alternative coins with great potential. This season is also usually a major boost for many new projects in the DeFi industry to attract the attention of the crypto community.
How to know when altcoin season has started?
Altcoin season is simply a time when more investment flows into altcoins than Bitcoin. This can have different causes. One of them: Bitcoin just ended its dominance after seeing a significant surge and investors started selling their Bitcoin assets for a profit. At the same time, the performance of several other altcoins is starting to improve as trading volume and cash flow increase. At this moment we can see that the off-season will start soon.
Altcoin Seasonal Index from Blockchain Center
In addition to observing the market and analyzing the crypto community, there is an intuitive website that can help you determine if peak season has arrived. There is an altcoin season index page on the Blockchain Center website that can make it easier for you to see if the altcoin season has started. There is also an index of altcoin months and altcoin years on the Blockchain Center website, which shows the situation of altcoin dominance in that month and year. In addition, the site also provides statistics on the performance of multiple assets.
Finally, the development of the market capitalization from Bitcoin to altcoins can also be seen in the news and trends in the crypto community. News of the planned development of multiple altcoins launching close together can signal an upcoming altcoin season. Announcements about major investors investing in altcoins also usually provide clues as to the trend in which the money is moving. Additionally, altcoin season usually begins with specific altcoins gaining significant popularity, such as Shiba Inu (SHIB), or an industry within altcoins that suddenly gains popularity, such as NFT.
How Can You Take Advantage of the Altseason Cycle in Cryptocurrencies?
Buying altcoin assets as an investment
Altcoin season can be an opportunity for you to own several altcoins with great potential in the medium and long term. As already explained, this season opens up a lot of potential for seminal cryptocurrencies. The most important thing you can do is research and analyze altcoins ahead of altcoin season. This can help you buy the right asset before you hit the high season so you can take advantage of the price increase.
Also Read: Different Methods of Analyzing Crypto Assets
You also need to keep in mind that while altcoins offer great profit potential, they also carry a higher level of risk than Bitcoin. Cases of altcoins losing value in a short period of time have occurred multiple times, especially for altcoins that suddenly experienced a drastic surge in popularity, such as Dogecoin and Shiba Inu. Therefore, you need to research the altcoins thoroughly before buying.
In addition, altcoins offer the potential to diversify your portfolio of crypto assets. This diversification strategy is very important as the volatility of the crypto market means that you can suddenly lose your money, especially if you concentrate all your investments in one crypto asset. If you choose the right assets, this diversification can also bring long-term benefits.
Trade for profit
The second strategy to use the altcoin season is trading. This season, many altcoins are experiencing drastic price increases and if you are willing to take the risk, you can benefit. However, it depends on your analysis and research on altcoins, especially considering important characteristics like trading volume, community trust in altcoins and their popularity.
Also Read: What is the Difference Between Active and Passive Trading?
In addition, there is great potential in the many altcoin projects that will be launched this season. If you’re looking for profit, you can look for altcoins that have a strong development team, a product with clear utility, and a loyal community that keeps growing.
How do I buy altcoins?
You can start investing in different types of altcoins in the Pintu application. Through Pintu, you can buy altcoins like ADA and other crypto assets in one convenient all-in-one application.
Pintu is also compatible with popular wallets like Metamask to facilitate your transactions. Download the Pintu app on the Play Store and App Store! Your safety is assured as Pintu is regulated and monitored by Bappebti and Kominfo.
Diploma
Altcoin season is one of the seasons in cryptocurrency market cycles. It is an important time when altcoins demonstrate their power and superiority over bitcoin. For traders, this season is an important opportunity to diversify their asset portfolio and earn profits from promising altcoins. However, traders need to be careful when choosing their altcoins as they also carry greater risk than investing in Bitcoin.
Sources:
- Alternate Winds of Change – Coin Telegraph
- What is an alternate season? – Escape artist
- Discover Altcoin Season – Moralis Academy
- What is an altseason – Bitcourier
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