When it's "altseason" you want to make sure you're not HODLING (holding your cryptocurrency rather than selling). What happens if you don't sell your altcoins during altseason? Well, you'll miss out on raking huge profits like every smart crypto investor out there. Knowing when the next alt season will happen is important if you're looking to reap massive profits when you sell. But what exactly is altseason?
What is Altseason (Altseason crypto)?
Every year we look forward to the time when things are cheap in the market...more like an open season. The time when there's more than enough food to go round. At this time we stock up so much because we're getting more value for our money. For gadget freaks it's keeping an eye out for the next BLACK FRIDAY.
For cryptocurrency owners and enthusiasts the altseason is just like "Black Friday."
Altseason is the period when most altcoins appreciate and gain more value than the Bitcoin. During this period, the market rate for the Bitcoin falls and the market value for alternative coins see a huge rise. Usually this period can last a few weeks, sometimes a month or two. This sharp rise in value of altcoin is caused by a lot of factors. But one thing is certain, you reap big rewards (either in coins or fiat money) when you sell your altcoins during altseason.
In the past, altcoins have enjoyed reaping rewards during altseason. Most notably was in December 2017 when altcoins saw an uninterrupted boom. This trend stood for weeks without any interruptions. It also happened again in 2018, but that was short-lived. Since Altseason happens for a number of reasons, it is important to keep a weather eye when it's imminent. Usually, this happens when there's a positive news about an altcoin doing the rounds. As a result, speculators are more likely to bet their money on that coin. You should too! This move attracts more investors, in turn driving up the price and value for that alternative coin or coins.
How to prepare for Altseason
To know when Altseason will happen, understanding "Bitcoin Dominance" will make sure you're never caught off guard.
What is Bitcoin dominance?
Bitcoin dominance tells you how many people in the market are selling or holding on to their Bitcoin. If you want to reap massive gains in Altseason, you must understand two things about Bitcoin dominance:
● Bitcoin dominance ( i.e. the cryptocurrency market capitalization for Bitcoin) increases when crypto traders hold on to Bitcoin or buy more Bitcoin than they already have. During this period Bitcoin caps are high and this dominance affects altcoins which sell for less with little value.
● Bitcoin dominance decreases when crypto owners are offloading/selling their Bitcoin than holding on to them. This causes a surge in the crypto market value for altcoins.
What's next?
Now that you understand the concept of Bitcoin dominance, what should you do? When should you sell or hold on to your altcoins? Altseason happens when Bitcoin dominance decreases. Since cryptocurrency owners are offloading their bitcoins, holding out on your altcoins during this period increases the market value of your alternative coins. This is the best period to sell. Why? Because cryptocurrency owners are willing to buy altcoins like Ethereum at the expense of Bitcoin. This means more profits for altcoins owners.
However, it would be unwise if you held on or refused to sell your altcoins when Bitcoin dominance is on a high. Because during this period, the market value for altcoins will collapse. This means if you didn't sell your altcoins when Bitcoin dominance was in a huge decline, selling when the Bitcoin has gained more against altcoins will be equivalent to a huge loss.
The Bitcoin dominance mark is pegged at 50 percent. Historical data shows that when Bitcoin dominance drops below the 50 percent mark, altcoins (usually all of them) registered sudden surge and exponential increase in their market value.
The longest period of Altseason recorded was in 2017 December.
You can still make the most of the ongoing altseason using OKEx to trade for profit. Beautifully, Okex Academy and Okex Insights are available to help you through the process if you are new into crypto.
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