Cryptocurrency

December 6, 2021

What is an Alt Season?

Alt Season has been a very used term in recent days by crypto Twitter and also by different mainstream media. The issue is that not everyone knows what an alt season is.

Alt Season has been a very used term in recent days by crypto Twitter and also by different mainstream media. The issue is that not everyone knows what an alt season is. This term would be very important for you as a trader and investor in the cryptocurrency market. Additionally, it would help you understand how the entire crypto market works and which type of investment cycles the crypto industry experiences over time. 

In the next sections, we would not only focus on giving the answer to “what is an alt season?” but we would also try sharing with you all the necessary information you should have about altcoins and digital currencies. 

Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional financial advisor.

What are Altcoins?

Altcoins are alternative cryptocurrencies to Bitcoin that have different features and characteristics. Each of the altcoins released has a specific feature that would make it different from others. 

There are different reasons to release an altcoin. Some projects want to create utility tokens for users on their platform to use it. Some other projects released preferred to create a token to expand their services and simply to gather funds. 

The positive thing about altcoins is that some of them are very useful and innovative. For example, Ethereum (ETH) is the second-largest virtual currency in the world and it became the largest smart contract network in the world. 

It is also worth pointing out that altcoins have been speculative investments. Some of the massively grew and remained at high valuations, some others were simply scams. After a fast price increase to unexpected levels, the price of the token abruptly fell to almost zero. 

Therefore, it becomes very important to understand how altcoins behave and what could be the reason behind their growth and expansion. Failing to properly identify these things could result in very bad investment results. 

What is an Alt Season?

The introduction that we have made above lets us move to understanding what an AltSeason is. In the cryptocurrency market as in any other industry, there are bull and bear markets. That means that there are periods in which altcoins move higher and moments in which these altcoins move lower. 

Bull markets are very positive for investors as they will have the possibility to make profits by investing in selected currencies. The profits they make would highly depend on a large number of factors, however, it is highly possible that investing in the correct altcoins during a bull market would result in profits. 

This is what the market calls an AltSeason: a bull market for altcoins. During these markets, altcoins tend to grow faster and more than Bitcoin, generally speaking. Recognizing an altseason would be very important for investors as they would be able to make higher profits rather than holding Bitcoin.

It is also true that when an altseason starts, the virtual currencies that register the largest gains are usually smaller tokens that are not widely known by investors. Although they are riskier investments, they could be a great possibility for investors to diversify their portfolios with a small allocation.  

But of course, an altseason has an end. Usually, when an altseason finishes, we see digital currencies falling by over 80% in some cases. Indeed, some coins simply disappear after a bull trend. This is why it is highly important the timing in which you leave the market. If you do so correctly, you might have the chance to re-invest your profits in the future on those altcoins that are still in the market. 

Which Cryptocurrency To Buy?

This is a very difficult question to answer as there is no guide to investing in cryptocurrencies. Having a diversified portfolio is very important. Bitcoin, Ethereum and Litecoin are usually the most popular cryptocurrencies to invest in. However, if you want to make larger profits, there are other riskier digital currencies that could provide you with larger returns during an altseason.

We are talking about digital currencies that are well below the top 100 largest virtual currencies in the world and that could only be purchased in selected exchanges. These are very risky investments and it could result in your funds getting lost forever, as many of these coins might not survive. 

AltSignals Team

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

Join us

Follow AltSignals to stay up to date with the latest developments in the world of finance and technology, and explore how our insights can help improve your trading strategies. The AltSignals team is here to guide you through the exciting, dynamic and challenging world of financial markets.

Latest posts author AltSignals Team

Latest posts from the category Cryptocurrency