What Is the Altseason And How to Make the Most of it?

The peak of popularity of the world’s main cryptocurrency — Bitcoin (BTC) — came in 2017. Millions of dollars were earned and lost: the volatility went through the roof, and the excitement grew. It has been 6 years since then, and Bitcoin still rules the crypto market. But sometimes it “goes on vacation.” During such periods, altcoins come out of the shadows. In the Crypto World it is usually called the altseason. Read more about it in our new material.

What is an altseason?

Altseason is a phenomenon in the cryptocurrency market, characterized by the growth of altcoins, exceeding the growth of Bitcoin. Usually, such a period doesn’t take long.

The main feature of the altcoin season is the quick income for all altcoin investors. The jump in popularity of alternative digital currencies comes when Bitcoin is already at the top of investor transactions. To squeeze the maximum profit out of the crypto space, traders have to pay attention to alternative currencies as well.

What altcoins are out there?

All coins are considered to be altcoins (alternative coins), except for Bitcoin. Among the most popular ones at the moment are ETH, DOGE, ADA, XRP, USDT.

The choice of altcoins for investment is made depending on the latest trends in the crypto market and on the investor’s personal preferences (interests, greater awareness, investor instinct, etc.).

Altcoins are divided into:

• Stablecoins. The most stable tokens pegged to fiat currencies. Now the most popular stablecoins by capitalization in 2023 are USDT, USDC.
• DeFi tokens. These are specialized tokens for decentralized applications. The most popular are: UNI, 1INCH, CRV, AAVE.
• Memecoins. Cryptocurrency inspired by Internet memes and, surprisingly and envy, turned out to be very popular. First of all, these are DOGE and SHIB tokens, which have been successfully traded for several years.
• Staking altcoins. An alternative cryptocurrency based on the Proof-Of-Stake protocol — NEAR, ADA, AVAX, ATOM.

How to track the altseason?

To track the altseason, you should constantly monitor the information space. News sources, Twitter and Telegram accounts of leading crypto-influencers, verified information blogs — you need to keep track of everything. Also, there are special metrics that can predict the arrival of the altseason.

Signs of approaching altseason:

• Bitcoin bull market

The bullish trend in the behavior of Bitcoin shows an increase in demand for this cryptocurrency and the rapid growth of its rate. Usually, when the bullish trend for Bitcoin ends, there is an increase in altcoins. This happens due to the fact that during the Bitcoin rise, altcoins become cheaper, so investors are switching to buy them, thereby provoking growth. The Bitcoin bull market might be a good indicator of the approaching altseason.

• Rising prices for leading altcoins

The fact that Bitcoin is the main cryptocurrency in the world does not mean that all other tokens are small and inconspicuous. There are many currencies among them that have their own large investor base and can also set trends in the market. For example, if large market cap altcoins such as ETH and BNB are on the rise, it is highly likely that other altcoins will rise in price as well.

• Emergence of new blockchain trends

New trends in the cryptocurrency market always entail changes. Often this means that investment flows will either change their directions or new areas for investment will open up. For example, in 2020, a trend called DeFi “shot”. In this regard, altcoins associated with decentralized finance rose in price.

When is the best time to buy altcoins?

Unfortunately, algorithms that can accurately predict the date and time for the most profitable investment in the altseason have not yet appeared. The long wait for the right hour can play against the investor — the upward trend might become downward, and the potential profits will turn into losses.

In order to successfully earn on investments in altcoins, it is necessary to constantly monitor information about them. You can do independent analysis and search for new projects. It is important to understand what place altcoins occupy in the cryptosystem and what advantages each coin can offer. That will help you to build investment strategies, observe the behavior of altcoins on the market, and act at the most appropriate moment.

The altseason is a short time period, but it’s extremely intense — if you know how to use it correctly. It is far from certain that the same coins will go up in the new season as in the past, so you always need to be ready for any outcome.

If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Ethereum Might Get Overloaded” and “What Is Formal Verification”.

Originally published on our Publish0x blog.

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