Altcoin Season – How to be Prepared for the Season?

Altcoin-Season, how it works and how to behave. The growth in altcoins looks unstoppable. Here is what to buy.
Altcoin Season

Cryptocurrencies had been losing interest from the time when prices were in all time high till now. But only experienced in crypto space people know that cryptocurrencies price tend to move in cycles or in other words seasons.

As the time goes by more and more people who invested in the peak of cryptocurrencies tend to sell of their belonging cryptocurrencies or completely quit the crypto space.

These people money are the dumb money flowing out of the market and pushing the prices even further down.


What is Altcoin Season?

I divide crypto investors in two groups : People who prefer bitcoin and people who prefer altcoins. For those who prefer altcoins over bitcoin and believe in their favourite tokens, I have some great news.

This may be a very good time to invest in altcoins, because altcoin season may have already started. Altcoin season is a period of time when altcoins overperform bitcoin. During this time many of altcoins price skyrockets.

The main argument why this period of time may be the start of altcoin season is that bitcoin is slowly but consistently gaining strength and recovering from its low ~5800$.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

At the moment of writing the bitcoin exchange rate is 7060$. Strong and consistent bitcoin is one of the reasons why other altcoin seasons had started.

Second argument that I have why we may be entering another altcoin season is that some of the altcoins are down from 75% to 95% of its peak value. That is insane! There are literally no place left for some of them to fall even further down.

And that is why some of them such as NANO, EOS, VEN are going up like crazy this week.

Historically speaking 2017 September was the start of altcoin season, we can totally expect some bullish actions in the market as we are getting closer and closer to the new year.

The market in the summer usually has the lowest volume compared to other seasons, August is historically the month with the lowest volume.

The autumn is usually very bullish in most markets, many professional traders and investors come back from holiday with their families and go back to markets. To add trading is 95% psychology and only 5% trading.


Bull Run is Closer Every Day

Bull Run

When the bull rally starts and the higher prices we see, the more people will enter the market as a result of FOMO ( fear of missing out).

No one knows when will the actual bull run start but the bigger numbers people see on the chart the more they want to get involved in the market.

When the people see bitcoin exchange rate again above 10 000$ they will be obsessed with the idea of getting rich really fast, the same happened last year, people started buying bitcoin and cryptocurrencies with credit cards, taking loans to buy cryptocurrencies.

When the sentiment of the market becomes bullish as it happened one year before, all the media will be full of bitcoin charts and experts with expensive suits telling how much profit they made and why and how to get involved.

The fundamentals of cryptocurrencies are getting better and better every day, lightning network capacity is getting bigger and bigger – over 600 000$, mass adoption is starting – you can now buy land, houses, even products from shops with cryptocurrencies, atomic swaps is available – smart contracts between two people, when one side send for example 100 litecoin and other side 1 bitcoin, when both sides fullfill the smart contract, the first side receives bitcoin and other side receives 100 litecoin. Yet, there are some significant dangers in crypto space.


What are the Dangers in Crypto Space?

Dangers In Crypto Space

When last bullrun occured, some groups in telegram that call themselves Crypto Telegram Signals, Crypto Expert Signals and many similar names became very popular.

These groups are nothing more but a pump and dump schemes. Especially during the altcoin season these groups became very active and attracted many new inexperienced users.

How does this works? The people who manage the group buy some coin with very low volume and hold it till the day of given signal. When they give the signal they usually give 3 targets, people start buying the coin and because there are no or very little volume the coin price spikes up very fastly then the group of people that manage the group and had bought the coin when it was much cheaper before the pump use the liquidity in the market to get out of the trade and sell the coin.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

The biggest target is usually never reached and people that bought the coin and other people who FOMO‘ed in are stuck with a usseless coin.

In my opinion these pump and dump groups are the biggest danger in cryptocurrency space. You must avoid them at all cost. One of the risks during the altcoin season is to buy an altcoin which is performing very well.

Many new people see those huge gains and buy the altcoin on its peak, everyone knows what happens next – the coin crumbles to dust, it goes down and down and it never stops. You should really think about if you want to invest in a coin at its all time high.

Do your own research before investing money anywhere, read some articles, consult with a financial advisor, diversify all the information you are getting.

Read Next: Why Telegram Channels Are Best for Crypto Trading Signals


Main Aspects

  • We may be entering an altcoin season becouse historically the start of autumn was the start of last year‘s altcoin season, autumn is overall bullish season.
  • Bitcoin is gaining strength and stability, bitcoin is recovering great from its low of 5800$.
  • Some altcoins are down 75% – 95% there is no place left to fall and the only way from there is up.
  • Trading is about psychology, in fact 95% of trading is psychology and only 5% is trading and charting.
  • Be aware of dangers in cryptocurrency space such as crypto pump and dump groups that call themselves signal groups and many other similar names.
  • Be aware and consider well before buying a coin that is in its all time high and most important of all do your own research and invest only in projects that you are familliar with.
Image Credits
Feature Image Credit: shutterstock.com
In-Post Image: coinvedi.com, cryptospace.berlin
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Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Author

Contributor : Robert Simkus

Robert Simkus is a blockchain expert, investor, writer. His passion is to share his unique insights on finance, psychology, cryptocurrencies. Entered cryptocurrency space in early 2016 now stacked great experience in the market and is willing to share it with others. He authors in-depth guides that teach starting investors on how to make and keep making money, how to avoid present dangers. He can be contacted via Linkedin.

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