What is Altcoin Season?
Altcoin season refers to the market stage where altcoins, i.e. all non-Bitcoin cryptocurrencies, begin to make huge gains and can be worth two, three, or even ten times more in a short period of time. During the altcoin season, Bitcoin tends to remain fairly stable, and this allows altcoins to gain momentum and make upward movements.
Is there a specific time when the altcoin season takes place and is there a way to take advantage of it? We will try to explain the answers to all these questions in our article
When Does the Altcoin Season Start?
Exactly when altcoin seasons begin and end is hotly debated among cryptocurrency investors. If there were a simple answer, then everyone would be making millions. There is no set time for the altcoin season to take place, but usually the season begins after Bitcoin has started a run on its own. Once Bitcoin has made its run and become stable, altcoins begin to revalue, price in relative to Bitcoin’s current value, and this usually indicates opportunities where altcoins have room to grow. But one way to track this historically is to look at Bitcoin dominance. This is a measurement of how much Bitcoin’s market capitalization contributes to the total market capitalization of all crypto assets. Profits from Bitcoin, along with positive market sentiment, provide a good time to invest in altcoin projects that lead to an increase in value.
How Do I Take Advantage of the Altcoin Season?
It depends on your experience in the cryptocurrency markets and your risk tolerance. If you’re mostly just holding your assets, the altcoin season won’t affect you too much because you’re only moving forward with the tides of the market. In fact, if you’re trading daily, trading cryptocurrencies frequently, taking long and short positions, or doing any other type of financial risk activity, there are many different ways to take advantage of altcoin season. Of course, this really means that you need to research different cryptocurrencies, learn about technical analysis, and take the associated risks when trying to make a profit through trading cryptocurrencies. If you can do all of these things, then you definitely have a chance to make altcoin season great for you, but you can buy at the wrong time and lose your money quickly, both options need to be weighed. When money begins to flow rapidly from Bitcoin to alternative coins in the market, we can say that the altcoin season has begun. All in all, for many, altcoin season is best viewed from the sidelines, but it’s always an exciting time to be a cryptocurrency enthusiast.