Several novice crypto traders want to know which coin is best to invest in, Bitcoin or Altcoin? Undeniably, most crypto investors trust Bitcoin; consequently, it remains the number one coin globally. Despite the dominance of Bitcoin, it is nevertheless true that many people prefer Altcoins. How can we know when the timing is ripe to invest in Altcoins? At this point, the Altcoin season enters the scene.
What is an Altcoin, exactly?
It is vital to talk about altcoin before we discuss altcoin season. Altcoins are cryptocurrencies other than Bitcoin, according to Investopedia (BTCUSD). They have certain similarities to Bitcoin, but they differ in significant ways. Some cryptocurrencies, for example, construct blocks or validate transactions using a different consensus process. Moreover, they set themselves apart from Bitcoin by offering new or enhanced features like smart contracts or minimal price fluctuation. Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Polkadot (DOT), Bitcoin Cash (BCH), Stellar (XLM), Dogecoin (DOGE), Binance Coin (BNB), and many more are examples of Altcoins.
Because of their smaller market capitalizations and lesser liquidity, Altcoins are naturally more volatile than Bitcoin; yet, although this means they may quickly leave investments worthless, they also offer the potential for massive returns. Altcoins have exploded in popularity over the last two years. And as long as these projects continue to meet the demands of the blockchain community, whether by solving unresolved problems or enhancing current ones, this trend will continue as expected.
What is Altcoin Season, and when does it happen?
Many crypto traders anticipate the forthcoming Altcoin season now that bitcoin continues to grow. The Altcoin season is when Altcoins outperform bitcoin considerably. During this period, the price of bitcoin remains unchanged. It was the same thing that happened in 2017.
When we look at the significant past occurrences of Bitcoin, we can see that the alt season begins when bitcoin reaches its (ATH) or all-time high. The last time this occurred was in February 2017, when bitcoin burst beyond the $1,000 barrier. In 2013, the previous all-time high occurred. From February 2017 to February 2018, cryptocurrencies like ETH climbed by 6,234 percent, LTC increased by 7,771 percent, and XRP soared to 11,150 percent.
If you want to check the current prices, you can go to crypto trading platforms like Bitcoin Motion. You may also connect with a crypto community and expert crypto traders using this platform to learn more about alt season.
What do traders do?
Traders amass Altcoin as much as possible and then wait for a profit. Waiting for bitcoin to achieve its all-time high (ATH) is a sensible approach before converting to Altcoin. When Bitcoin gets near its ATH, traders and investors begin to move and switch to alts.
The alt season indicator from Cointelegraph Markets Pro indicates that the industry is in the midst of one, with a 32 percent propensity. The Altseason Index, which defines an alt season as a 90-day period in which 75 percent of the top 50 Altcoins outperform Bitcoin, believes it is not yet an alt season. However, if the previous few weeks are any indication, the Altcoin market is only getting started, and it is already demonstrating its potential to arise.
Yes, no one can predict when it will happen since bitcoin is in a different condition now than it was previously. There have been several developments, and new institutions have entered the market. Business Insider has compiled a list of cryptocurrencies to keep an eye on in 2022. It includes Ether, Cardano, Litecoin, Voyager token, Terra, Solana, and NEAR protocol.
Bitcoin is becoming increasingly well-known. There have been a lot of fundamentals introduced to cryptocurrencies, and some indicators are leaning towards the alt season side. As a result, it’s not out of the question that the cryptocurrency season would arrive sooner than predicted. Most cryptocurrency analysts predict it will happen in the first quarter of 2022.
Closing Thoughts
Altcoins have seen a massive price increase in recent months. People see that Altcoins such as Solana, Cardano, and Polkadot have tripled in value, implying that Altcoin is on the way. However, signs and convincing confirmation that the cryptocurrency season is already underway are still vital. Reading a lot about technical forecasts, charts, price movement, innovation, and crypto news might help you make an informed decision about the Altcoin season.