This is a time when many dream of becoming rich, multiplying their investment by 100 or even 1000 times. But in reality, this period will be a serious test for your patience and character.
What awaits you?
- You will want to check every day how much your portfolio has grown.
- You will dream about how large your assets will be when some altcoins soar to new heights.
- You will want to brag about your successes in front of friends who are not particularly interested in this topic.
- Every correction or ESPECIALLY a new high will make you want to invest even more money.
- There will be temptation to break your own rules about risk and position size for each individual coin.
- The deeper you go into altcoin season, the more you will start considering lower quality projects.
This will be a real test. Only those who stay calm and can endure a drop of 30%, 50%, or even 70%, and impressive growth of 100%, 300% or even 500% will win.
What to do?
1. Have a clear plan.
Define your goals, decide in advance when you will withdraw from the coins.
2. Reality.
Set reasonable financial goals, you should not rely on a "million" percent.
3. Accumulate when prices are low.
To do this, you should monitor the RSI indicator (it shows when the market is overheated or, conversely, has dropped too much).
4. Determine the most likely time for the end of the cycle to occur. Signs of the end of alt season:
- The mainstream media begins to write more about altcoins.
- Double top patterns appear on larger timeframes with low/decreasing volume.
- RSI on the monthly chart exceeds 90 points for an extended period.
The most important thing is to maintain humility and rationality. And stick to the plan and goals.
Altcoin season can be a great opportunity, but only for those who stay calm and act consciously.
