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Ask CryptoVantage: What is Altcoin Season?
Forget Summer or Fall, if you’re getting into cryptocurrency than you’ve no doubt been inundated with the term “Altcoin Season”. But what is Altcoin Season, is there a specific time it happens and is there a way to take advantage of it? We will answer all of those questions and more in this edition of Ask CryptoVantage.
What is Altcoin Season?
Generally speaking, altcoin season refers to the market phase when altcoins, meaning all the cryptocurrencies that are not Bitcoin, start making big gains and can double, triple or even be ten times more valuable in a short period of time. During altcoin season Bitcoin tends to stay fairly stable and this allows altcoins to gain momentum and make swings to the upside.
Crypto enthusiasts, YouTubers, analysts, and the like all like to use the phrase to create buzz and it has become synonymous with digital assets going to the moon.
When Does it Happen?
Well, if it were a simple answer then everyone would be making millions would they not? There is no obvious time for altcoin season to occur, but it often comes after Bitcoin goes on a run of its own. During this time, Bitcoin leaves altcoins behind as money flows into it, as they do not gain as much value against Bitcoin as they do against the dollar.
After Bitcoin has made its run and is stable, altcoins start to be revalued based on the current value of Bitcoin, and this often shows opportunities where altcoins have room to grow. Profits from Bitcoin along with there being positive market sentiment makes for a good time to invest in altcoin projects leading to a spike in value.
How Do I Take Advantage of Altcoin Season?
Well this depends on your crypto experience and your risk tolerance. If you are not a day trader, or crypto trader in general, meaning you mostly just hold your assets, altcoin season will not affect you very much because you are just going with the ebbs and flows of the market.
If you are in fact into day trading, frequently trading cryptos, taking long and short positions, or any other financial risk activities of that nature, then there are lots of 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 any associated risks with trying to generate profits through trading cryptos.
If you are able to do all of that, then you certainly have chance to make altcoin season great for you, but you could also buy in at the wrong time and quickly lose your shirt, both options have to be weighed. In the end, altcoin season may be best watched from the sidelines for most, but it is always an exciting time to be a crypto enthusiast.
