Alt-Season: What Will Drive Some Altcoins to New Highs On OKEx?

By Immanuel Somto | TOCHI blog | 31 Aug 2020


 

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For neophytes or newbies in the cryptocurrency realm, Altseason may be a new term for you. Altseason is the short form of Altcoins Season.

In Altseason, it is common to see the crypto world bubbling, save for Bitcoin. The altcoins will be positive and this will lead to an increase in market shares of these altcoins. If you don't know what altcoins mean, it means any crypto apart from BTC. It is also a short form, and its long form is Alternative Coin. As long as that crypto is not Bitcoin, it is an alternative coin. 

There are a number of altcoins trading on OKExchange at the moment, and if Altseason comes, the high trading volume of these altcoins will be noticed on OKEx too. If you are looking for where to invest in alternative coins, head to OKEx. It's one of the best exchanges at the moment. 

 

For those that have been in the crypto market for a while, they must have remembered the Altseason of December 2017 that took the crypto world by storm. It was amazing to the extent that some altcoins saw an increase of 400%.

 

Are Altcoins The Right One For You

During the Altseason, holders of the altcoins usually make a killing. This is the period that they smile to the bank. It can be likened to Cyber Monday and Black Friday for online merchants. When Altseason comes, investors are usually excited because of how fat their accounts become. For someone that wants to make a killing during the altseason, it is advisable to invest in altcoins. They offer investors the chance of making a lot- during the altseason- because of how low they are in value at the moment. You can have access to these altcoins on OKEx. 

 

What To Do While You Wait For The Altseason?

If you have decided that you want to be ready by making hay while the sun shines, there are two basic steps that you should follow. 

  • Phase 1. Try and predict the beginning of the Altseason.
  • Phase 2. Do some research on the different Altcoins and try to predict those that you think may increase in worth during the Altseason. 

Phase 1. Try to predict the beginning of the Altseason.

The BTC dominance is an indicator that shows if the altseason is near or not. The truth is that it is not 100% accurate, but it offers some warning signs. 

What the BTC dominance does is to show the size of market share that Bitcoin holds in the crypto world. Usually, Altseason happens when the BTC dominance has decreased drastically. This was what happened during one of the most popular Altseasons, which was in December 09, 2017. The same thing happened on March 30, 2018.

What the aforementioned has gone to show is that if BTC dominance reduces drastically, an Altseason may be nearby because more investors will view the Altcoins as being more lucrative. 

 

Why Does The Above Happen?

When we were forced to study 'Law of Demand and Supply', we may have been clueless that this would be used today. The reason behind the phenomenon of altseason is that basic Economic law. 

When you notice the BTC dominance sliding, it means that many investors are selling their Bitcoins. When investors sell their BTC, they either have to exchange it for fiat currencies like USD, or they have to exchange it for altcoins like ETH and so on.

In most cases, they do the latter, which in turn, leads to an increase in demand for altcoins. An increase in demand will lead to an increase in the price of the altcoins.

Apart from that, other investors or enthusiasts will see the rise in the value of these altcoins and decide to join so as not to miss out on the benefits of the cryptocurrency market. 

Immediately crypto speculators, investors and enthusiasts notice the increase in the Altcoin market, they start to inject more capital into the market, which leads to a higher increase in the market. 

Phase 2. Do some research on the different Altcoins and try to predict those that you think may increase in worth during the Altseason. 

Most times, the altseason comes out of nowhere, not giving out a loud warning that it is coming. This is not far from the fact that the worth of crypto is based on some factors. The dream of every investor and enthusiast is to buy a crypto that will increase in worth once the altseason begins. This will allow them to smile to the bank. 

Doing this may not be easy as they do not have a time machine that allows them to see into the future. What experts do is to watch the news closely. Is there positive news about an altcoin? What's the frequency of the adoption of the altcoin? Are there new innovations in that coin ecosystem?

Experts use the information to decide on which altcoin they will invest in. It may also show if the altcoin will do well when the altseason is upon us. News and rumors about an altcoin can affect the worth of that coin. It is important to note that the news and rumors affect the value of more than one coin, which in turns, leads to a domino effect. 

The goal of smart investors is to sell their altcoins before the altseason ends. This is because after the altseason, the value of the altcoins may drop rapidly. After an Altseason ends, the value of some altcoins drop as rapidly as they had increased. Those that sold at the right time make a lot. Smart investors know when to sell and what period to buy. 

Since one can't tell for sure which altcoin will do well in Altseason, it is advisable to diversify your portfolio. Create a portfolio of coins that your feel have potentials based on the fundamental point of view. It is advisable to do a tonne of research into the different altcoins that you want to buy. 

With OKEx, you can have access to historical data, charts and information concerning major altcoins. The aforementioned can show you which portfolio of altcoins you may need in your portfolio. 

 

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Immanuel Somto
Immanuel Somto

That crypto lover


TOCHI blog
TOCHI blog

Your regular crypto lover and entrepreneur

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