The movements of Bitcoin impact altcoins that can benefit, as they are an option for those looking to diversify their investments.
Are we on the brink of a new altcoin season? How to make the most of this moment
The altcoin season is that moment eagerly awaited by many cryptocurrency investors when altcoins take center stage. It's as if the market stage lights up for innovative and disruptive projects, leaving Bitcoin as a temporary spectator. During this period, altcoins usually outperform the king of cryptos.
According to the Altcoin Season Index from CoinMarketCap, we are in an altcoin season when more than 75% of the top 50 altcoins outperform Bitcoin over a 90-day period.
What does this mean for you? The possibility of maximizing your portfolio by exploring unique opportunities in cryptocurrencies that combine technology, vision, and community. So, if you've ever thought about expanding your crypto horizons, this could be the time to look beyond Bitcoin. We have the case of Pepe Unchained, which has already surpassed 54 million dollars in its presale, or CatSlap, which in less than 24 hours became a trending token within Dextools.
Tips to make the most of the altcoin season
To invest in altcoins, one must first do their own due diligence (DYOR)
To invest in altcoins, one must first do their own due diligence (DYOR)
1. Smart diversification
"Don't put all your eggs in one basket!" This saying applies perfectly to the world of cryptocurrencies. The key to a good strategy in altcoin season is to diversify your portfolio.
Distribute your investments in altcoins with different use cases: from projects focused on blockchain technology to tokens linked to decentralized applications or the metaverse.
For example, you could combine established cryptocurrencies like Ethereum (ETH) with emerging projects like Pepe Unchained, $BEST, or CatSlap, which are generating a lot of interest in the market.
By diversifying, you reduce the impact of potential declines in a single cryptocurrency and increase your chances of capturing significant rises in others.
2. Thorough research
In the crypto market, "knowledge is power". Before betting on an altcoin, make sure you understand what you're investing in. Here are the key aspects you should analyze:
Team behind the project: Who are they? Do they have experience? A solid and transparent team is often a good indicator.
Roadmap: What goals do they have and how do they plan to achieve them? A well-defined roadmap will give you an idea of the long-term potential.
Use case: Does it solve a real problem or provide innovation? Altcoins with a clear purpose tend to have greater backing.
Active community: The participation of an enthusiastic community often reflects trust in the project and can influence its adoption.
3. Use of advanced tools
In such a competitive market, having the right tools makes a difference. When choosing a wallet, for example, we are interested in it having the following features:
Universal compatibility: Supporting a wide variety of altcoins, allowing you to manage all your investments from a single platform.
Access to exclusive presales: Participating in star launches, like Pepe Unchained, is much easier if it has integration with presales and emerging projects.
Intuitive interface: We seek that its design is aimed at facilitating navigation for both beginners and experienced investors.
Integrated analysis tools: These always help you assess the performance of your assets in real time.
Signals to detect the next altcoin season
The movements of Bitcoin impact altcoins
The movements of Bitcoin impact altcoins
The arrival of a new altcoin season can feel like a wave that drives the market to new heights. For attentive investors, identifying these signals is key to making strategic decisions. Here we break down the most relevant:
1. Decrease in Bitcoin dominance
Bitcoin, the leading cryptocurrency, acts as a key market indicator. When its market share starts to decline, it's usually because investors are diverting their attention and capital towards altcoins. Currently, Bitcoin holds a market share of 59.19%.
Why does this happen? As Bitcoin stabilizes or grows at a slower pace, many seek higher returns in altcoins, which have a more pronounced upward potential. It's like diversifying a portfolio to seek growth opportunities in less explored territories.
2. Increase in trading volume of altcoins
When altcoins start to dominate conversations in communities and forums, it's no coincidence. An increase in trading volume is a clear sign that investors are betting on them; in fact, it is the moment when the best altcoins in the market begin to emerge strongly.
The increase in the transaction volume of altcoins indicates growing interest and confidence in these cryptocurrencies. For example, Ethereum (ETH) has experienced a 24-hour trading volume of over 38 billion dollars.
3. Development of new projects and trends.
The altcoin space is dynamic and innovative. Each cycle brings a wave of new projects that promise to solve specific problems or improve existing models.
For example, we have recently seen the rise of tokens linked to artificial intelligence, NFT games, crypto wallets, and DeFi platforms. These fresh narratives not only generate excitement, as we can see in the development of the presale of $BEST, but also drive market growth, attracting both new investors and veterans interested in diversifying their positions.
4. Increase in the price of Ethereum (ETH)
Ethereum is the "engine" that drives many altcoins thanks to its role as a base platform for smart contracts and decentralized applications. When ETH starts to show bullish behavior, it generally drags the entire altcoin ecosystem with it.
Ethereum has shown bullish behavior, with a current price of approximately 3,300 dollars, representing a 33% increase in the last 30 days.
This happens because Ethereum not only represents trust in the market but also a signal that developers and projects are thriving on its network. At this moment, the optimism surrounding Ethereum is raising expectations for an altcoin season, strongly influencing those tokens closely related to this blockchain.
We can see it in the aforementioned altcoin Pepe Unchained. Behind its meme appearance, there is a layer 2 project built on Ethereum that seeks to be the ecosystem for future memecoins.
