Altcoins often explode in the middle and late stages of a bull market. Why do I say this?

1⃣️Funding constraints: Altcoin project parties generally face a shortage of funds. In the bear market and the early stages of a bull market, in order to pay wages and daily operating costs, project parties may have to sell their currencies to make a living.

2⃣️Market rotation: In the middle and late stages of a bull market, whales usually have received generous returns on mainstream currencies such as Bitcoin. At this time, they may turn their funds to altcoins to seek higher returns, thereby creating bubbles in the altcoin market and triggering a round of price carnival. This is also a good opportunity for project parties to make large-scale shipments and realize profits.

What should we do in this situation?

1⃣️Reasonably allocate positions: manage your investment portfolio and balance risks and returns. Avoid over-concentration on a certain type of currency to reduce potential market volatility risks.

2⃣️Be cautious about market heat: When the altcoin price is in a frenzy, stay calm, don't be confused by the excessive hype in the market, and rationally analyze the project fundamentals and market trends.

3⃣️Adjust strategies in a timely manner: Adjust investment strategies in a timely manner according to market changes, and seize opportunities to invest or withdraw funds to maximize profits.

Remember that although the mid-to-late bull market may bring high returns, it is also accompanied by high risks. Stay vigilant and allocate assets reasonably to cope with market uncertainties.