Expectations in Altcoin Season
1. The obsession with daily portfolio management
You may find yourself constantly checking your portfolio, surprised by its growth during the market peak. Each new price surge feels like validation for your investment choices.
2. Unrealistic fantasies
It's natural to start imagining altcoins soaring to dizzying heights. Social media and influencers in the cryptocurrency field can amplify this optimism, but it's important to stay calm.
3. The urge to brag
You may feel the urge to share your profits with friends or family, even those who are not interested in cryptocurrency. Remember, discussing profits is easy, but discussing losses is not.
4. FOMO and excessive leverage
When the market rises, the desire to 'invest more' can overshadow caution. FOMO can drive you to break risk management rules or hold oversized positions in hopes of higher profits.
5. Pursue low-quality projects
As major altcoins start to stabilize, attention shifts to smaller, riskier projects. While these projects can yield significant returns, they also come with a higher risk of loss or scams.
The emotional battle of Altcoin Season
Altcoin season is not just a financial challenge; it’s also an emotional one. You will face:
Volatility: Witnessing swings of 25%, 40%, or even 60% in a day is not uncommon. Staying calm during these fluctuations is key.
Excitement: Witnessing a coin surge 200%, 400%, or more will test your ability to stick to your exit strategy.
Fear of missing profits: When prices rise, you may hesitate to take profits for fear of missing out on higher gains.
Success in altcoin season requires steadiness and a clear plan. Here’s how to position yourself for the best results.
How to succeed in Altcoin Season
1. Create a clear plan
Before the season begins, define your goals:
What is your profit target?
What profits or losses will you exit at?
How much risk are you willing to take in your portfolio?
Write these things down and follow through even when emotions run high.
2. Set realistic expectations
While altcoin season can bring extraordinary profits, not every investment will yield 1,000%. Avoid the trap of expecting every coin to skyrocket. Set achievable goals and don’t let greed cloud your judgment.
3. Buy during corrections
Instead of chasing coins during parabolic price increases, look for opportunities during dips. Use technical indicators like the Relative Strength Index (RSI) to determine when a coin is oversold (RSI < 30) or overbought (RSI > 70).
4. Diversify wisely
Don’t put all your money into one or two coins. Diversify your investments across multiple high-potential projects. However, avoid over-diversifying as this can dilute your profits and make tracking your portfolio difficult.
5. Define the endpoint of the cycle
Every altcoin season eventually comes to an end. Recognizing early signs can help you avoid losing hard-earned profits. Be aware:
Mainstream media hype: When altcoins become headlines everywhere, the peak may be near.
Double top pattern: A popular technical indicator signaling a reversal.
RSI on the monthly chart: Maintaining levels above 85-90 often indicates overextension.
The golden rules of Altcoin Season
1. Stick to your plan
Discipline is your greatest asset. Avoid making impulsive decisions based on hype or market fear.
2. Take profits regularly
Remember, unrealized profits can vanish as quickly as they appear. Set profit-taking levels and stick to them, whether it's a 50%, 100%, or 300% profit.
3. Control your emotions
Fear, greed, and excitement are natural but dangerous during altcoin season. Train yourself to stay rational, even when the market swings wildly.
4. Avoid emotional overtrading
Overtrading, especially during market corrections, can lead to costly mistakes. Trust your plan and avoid acting on impulse.
Conclusion: The journey of growth and learning
Your first altcoin season is an opportunity not only to grow your portfolio but also to develop your financial discipline. The volatility of the cryptocurrency market can be a double-edged sword—rewarding those who are prepared and punishing the reckless.
By setting clear goals, managing emotions, and adhering to a solid strategy, you can successfully navigate this exciting season. Remember, patience and discipline are your greatest allies in maximizing the opportunities ahead.
Stay calm, focused, and let your strategy guide you through the ups and downs of your first altcoin season.
