The alt season: a time of carnival and risk

When the real alt season arrives, the market enters a frenzy stage, which is often the most frightening moment. The so-called alt season is when those junk coins that usually have no sense of existence begin to pull up sharply, and even some projects that have never been heard of have seen amazing gains. Although it seems to be prosperous, this usually means that the market is close to the top.

Characteristics of the alt season;

1. Low-quality currency outbreak: various unknown alt coins begin to double at any time, attracting a large amount of short-term funds to enter.

2. The market is extremely optimistic: investors generally believe that "buying with your eyes closed can rise", and speculative sentiment reaches its peak.

3. Mainstream currency weakness: The madness of alt coins is often accompanied by mainstream coins entering a state of shock or stagflation, and funds gradually flow from mainstream coins to high-risk alt coins.

Why is the alt season dangerous?

• Top signal: The carnival of alt coins often means the withdrawal of mainstream funds, and the market is approaching the final selling stage.

• Liquidity risk: When the heat fades, the price of alt coins may be halved in an instant, or even return to zero, making it difficult for investors to exit.

• Missed the opportunity to exit: Many people greedily wait for higher returns without realizing that they are already standing on the edge of a cliff.

Strategies for dealing with the altcoin season;

1. Take profits in batches: When altcoins soar, you should rationally take profits in batches to avoid excessive greed and miss the opportunity to exit.

2. Don't chase the rise: For currencies with excessive short-term gains, be cautious about chasing the rise to avoid becoming a high-level buyer.

3. Pay attention to market sentiment: When the market is overly optimistic, you need to remain vigilant and pay attention to changes in market capital flows.

Summary:

The altcoin season is both the last carnival and the biggest trap. In the face of crazy gains and seemingly unbeatable opportunities, staying calm and making rational judgments are the key to protecting profits and avoiding risks. Because after the end of the altcoin season, many people may find that what they are chasing is not wealth, but a deep pit of "never having a chance"