This is a moment when many dream of getting rich, multiplying their investments by 100 or even 1000 times. But, in fact, this period will be a serious test for your endurance and character.
What awaits you?
- You will want to check every day how much your portfolio has grown.
- You will fantasize about how huge your fortune will be when some altcoin skyrockets to stratospheric heights.
- You will want to show off your successes to friends who are not particularly interested in the topic.
- Every pullback or ESPECIALLY a new high will make you want to invest even more money.
- There will be a temptation to break your own rules about risk and the size of positions for each individual coin.
- The deeper we delve into the altcoin season, the worse projects you will start to consider.
This will be a true test. Only those who stay calm and can withstand drops of 30%, 50%, or even 70%, as well as impressive gains of 100%, 300%, or even 500% will win.
What to do?
1. Make a clear plan.
Determine your goals, decide in advance when you will exit the coins.
2. Be realistic.
Set appropriate financial goals, don't rely on a "million" percent.
3. Accumulate when prices are low.
For this, it is useful to follow the RSI indicator (which shows when the market has overheated or, conversely, has dropped too much).
4. Determine the moment when it is most likely that the cycle will end.
Signs of the end of the altcoin season:
- The media starts actively writing about altcoins.
- Double top figures appear in large timeframes with low or declining volumes.
- The RSI on the monthly chart exceeds 90 points for a long time.
The most important thing is to maintain modesty and common sense. And stick to the plan and goals.
The altcoin season can be a great opportunity, but only for those who stay calm and act consciously.