In this article, we will respond to the following queries:
- What is the Altcoin season?
- When does it happen?
- How to check if it is altcoin season or Bitcoin season?
- Which altcoins to buy and hold for altcoin season?
What is Altcoin season?
All the coins except bitcoin, like Ethereum, BNB, ADA, XRP, etc. are called altcoins. When 75% of the top 50 coins are performing better than bitcoin then this season will be called Altcoin season. In other words market cap of bitcoin decreases while 75% of the top 50 coins' market cap increases.
As you know bitcoin is very expensive so investors try to buy altcoins that
have a minimal price. As compared to bitcoin, there is more volatility in
altcoins. To get updated with altcoins, people mostly follow, telegram and Twitter.
Every altcoin brings improvement in blockchain like Ethereum introduced smart
contracts and ripple made transactions easier. During altcoin season, many
people move their assets out of bitcoin into other tokens.
It is virtually impossible to tell what causes an altcoin
season. However, the generally accepted idea is that after a bitcoin bull run, investors
tend to sell some of that bitcoin to release their gains then they seem to be
buying out coins with some of these profits which could later prices going up
in various altcoins. Some Investors also start converting bitcoins to fiat
currency.
In the history of cryptocurrency, the altcoin season happened 5
times and the useful season was from 2017 to 2018. During that time bitcoin
market was down by 40% and the Ethereum market increased up to 13000%.
Factors drivings altcoin season:
1- Dodge coin hype (This happened in March 2021. Dogecoin is currently the 6th biggest computerized coin with a complete market worth of nearly $42 billion)
2- The NFT craze still going on
3- The recent news surrounding the XRP sec lawsuit
How to check if it is altcoin season or Bitcoin season?
To check whether it is altcoin season or bitcoin season, click here. As you can see below the altcoin season remained from March 2021 to June 2021 and in this year 2022, there was no altcoin season but bitcoin season was all over the place. It is very difficult to predict which coins will perform really well in the altcoin season. But most researchers say that when Ethereum gets a pump up then it is an indication that there is going to be an altcoin season soon.
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| Image Source - Google | Image by Blockchain Center |
Which altcoins to buy and hold for altcoin season?
Some other coins also get pumped up like BNB, dogecoin, etc. Also, Large cap coins, mid-cap coins small cap coins show a huge pump which we saw in December 2017. Statistics show that every year MAY month, we see altcoin season except in 2018. There are also some coins that have not increased but yet have the potential to show a pump-up:
- Cardano
- Tron coin
- Bch coin