What To Do This Altcoin Season
Before we begin, please note that this is not investment advice and we are not investment advisors, rather we are just trying to offer some insight into some possibilities that could occur as a result of ‘Altcoin Season’, a phenomena that occurs when altcoins start to shoot up away from the trend of Bitcoin – some investors call it a pump and dump, but this might not always be the case.
Remember that investing in any cryptocurrency is a risky business, all cryptocurrencies are volatile and are subject to dramatic price changes, therefore you should only invest what you can afford to lose and always remember to trade safely.
It’s Altcoin Hunting Season
As we have suggested, ‘Altcoin Season’ refers to altcoins shifting upwards away from the trend of Bitcoin. Generally speaking, because of it’s huge grip on the markets, Bitcoin leads the price of altcoins, therefore when Bitcoin spikes, the rest of the markets follow, though, sometimes, due to a low level and underground investment, altcoins can see huge surges away from this trend. A great example of this came from EOS last April/May, when EOS tokens managed to reach $20.00, away from the grip of Bitcoin.
Back then though, the markets did have an air of positivity about then, therefore we don’t expect a huge bull run from EOS anytime soon.
According to The Merkle:
“Unlike what the name would suggest, the Altcoin Season is not necessarily something which happens during a specific time of year. In fact, there is no such Altcoin Season every year either, as the year 2018 made that rather apparent. However, it is a period during which cryptocurrency traders tend to get overly excited about smaller-cap coins gaining value so they can increase their Bitcoin holdings in the long run.”
“Until proven otherwise, it is nearly impossible to distinguish between the Altcoin Season and pump-and-dump schemes. Since most of the currencies gaining value during this season are currencies which usually serve no purpose, have no real use case, or no clear future, it is only normal they will be referred to as sh*tcoins. As such, one has to adjust the expectations of what an Altcoin Season is and isn’t.”
So, what should you do during Altcoin Season?
Ask yourself, does this look like a pump and dump? Don’t buy in straight away, just keep your eye on what happens, check the news and see what might be driving a particular altcoin and do your research. Invest small amounts and concentrate on movements. Ask, was this surge expected? See how the surge is affecting other areas in the market.
You need to stay focused and trade well in order to make the most of altcoin season, hold on tight and make wise choices, based on your own prior investments and your own research.
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