Alt Season is Coming

When writing this text, Bitcoin is on the verge of reaching $100,000, with its highest value at $99,502. It’s only a matter of time before it surpasses the magical six-figure mark investors in this currency have anticipated for years. The global crypto market is becoming increasingly noticed across all spheres, and following Trump’s victory in the 2024 U.S. Presidential elections, we can expect a massive expansion of crypto, particularly the alt season.

While OG crypto investors are focused exclusively on Bitcoin, anyone aiming for slightly higher profits must turn their attention to Alt tokens and create a portfolio containing this type of coin. In our earlier texts, we discussed the importance of portfolio diversification based on the narrative and type of tokens you hold. We strongly recommend revisiting that text to determine the best currency mix for portfolio creation.

Given that the Alt Season is approaching soon, we’ve created this article as a guide for the upcoming period. We offer advice based on our experience and mistakes from previous bull markets that we don’t want anyone to repeat.

Bitcoin Dominance

Although newcomers to the crypto world may find it challenging to interpret charts, tracking Bitcoin dominance can make the process easier, especially during a bull market. Bitcoin dominance represents the market share of Bitcoin as the leading cryptocurrency compared to the entire crypto market.

In a bull market like the one we are currently in, it is crucial to monitor Bitcoin’s movements—specifically, how far it will go and, when it reaches a new all-time high, how long it will remain at that level. If we observe that Bitcoin’s value stabilizes with minor fluctuations during that period, there is a high probability that profits from the world’s most famous cryptocurrency will begin to flow into so-called alt tokens. This includes Ethereum, which is why tracking the ETH/BTC ratio is equally important.

As expected, wealthy investors will always seek additional ways to generate profits. When Bitcoin reaches a value that even they find expensive to buy, the time for other assets arrives. This has been the case in every previous bull market, and we are confident this cycle will be no different. The current ETH/BTC ratio is 0.034, while in the last alt season in 2021, it reached as high as 0.088 when Ethereum achieved its ATH.

However, it is essential to note that most experts believe the current $99,000 for one BTC is not the maximum price it will reach and can go significantly higher. Until that happens, the Alt Season will likely need to wait a bit longer. On the other hand, the better Bitcoin performs, the stronger the Alt Season will be, and if everything unfolds as it should, it will undoubtedly be worth the wait.

Alt Season

One thing is sure. Everything will move quickly when the Alt Season begins, and you must be prepared for what lies ahead. You need to follow several rules to end this cycle with a profit and avoid waiting for the next four-year cycle. Below, we will outline the essential points related to selling and buying alts, which we still believe is not too late, as the best is yet to come.

Research the Tokens You Invest In

If you haven’t finished creating your portfolio and plan to add some currencies, it’s crucial to research the project you’re interested in. Every detail about the project matters. Starting with the roadmap, tokenomics and its unlocking schedule, the team behind the project, the marketing strategy, and the strength of the community it has built. Once you’ve evaluated all these parameters, invest only in tokens you believe have a chance for success.

Regardless of everything, trust your instincts and don’t rely too heavily on Twitter and YouTube influencers who “shill” certain projects. They usually do so for two reasons: they are paid for it, or your token purchase is their liquidity for exiting it. Of course, there are exceptions. Some individuals genuinely try to help crypto traders profit, but in most cases, they charge for access to their Discord or Telegram groups.

Regarding the importance of research, tokenomics unquestionably deserves your full attention. Priority should always be given to projects whose tokens are 100% unlocked and in circulation. However, due to the nature of business and project structure, most cryptocurrencies have periodic unlocking schedules, a factor you must consider. If token unlocking is linear, there is little risk of new tokens on the market significantly devaluing the project. Naturally, unlocking strategies vary, but an excellent example of sound business practices is the Layer 1 project named SUI.

Follow Narratives

This is a clear example of how dynamic the market is and how vital narratives were during the previous bull market. Meme tokens started gaining momentum only at the very end when most alts had already reached their new ATHs. However, this cycle is entirely different, with this type of token leading to the current phase of the bull market. There have never been more meme coins on the Top 100 market cap list. The strongest confirmation of this trend is that major crypto exchanges like Binance and Coinbase are increasingly listing these tokens.

Of course, trends are subject to change. So it wouldn’t be surprising if, in the coming period, trading volume shifts to AI-related tokens, Layer 1 projects, or even forgotten gaming tokens make a comeback. For this reason, it’s crucial to monitor trends and narratives and ride the wave to maximize profits. While all tokens will pump during a bull run, the goal is to find those that will outperform the rest.

Bounce Back After Dips

Another factor that can help you decide which token to invest is tracking its price recovery after dips. A dip represents a drop in a currency’s market value, and unlike in a bear market, where these declines cause panic among investors, during a bull market, they present an opportunity for additional buying.

Dips are an everyday occurrence, even during a “green” period. There are always people who purchased a token at its lowest price and are now ready to sell it at a profit. If you believe the token still has growth potential, these dips offer a chance to capitalize on lower prices and possibly reduce your average entry price. It will increase your potential profits later.

The best advice you can get is to monitor which tokens recover the fastest after dips. This indicates that investors were eagerly waiting for a correction to buy more. Watch daily charts, and you’ll notice that certain coins like Solana, SUI, and PEPE are often the first to lead percentage increases after stagnating post-dip, with others following their lead.

Create a Profit-Taking Strategy

Many first-time crypto bull market investors underestimate the importance of a strategy and plan for profit-making. No one knows when a token will reach a new all-time high or how high it will go, making it essential to set goals you’d be satisfied with. These goals can be adjusted depending on whether the situation unfolds better or worse than expected.

This is why we always encourage taking small amounts of profit whenever your token experiences growth. The “4 x 20% and 20% if moon” strategy has proven to be one of the most popular approaches. With this strategy, you sell the first 20% of your tokens once they reach. You continue selling 20% increments as the token doubles in value each time. That leaves the final 20% for the possibility of a meteoric rise, as seen with Solana in 2021. Suppose you’re investing smaller amounts and willing to take more risks. You can set higher limits, but the key is to have a plan and stick to it.

There are many strategies, but at the end of the day, the only thing that matters is that you’re satisfied with your profit. Set your goal as soon as possible and aim to achieve it. If reality exceeds expectations, it’s just a bonus for your wallet. If the profit aligns with your predefined goals, don’t regret selling too early. After all, that was your primary objective when buying the token.

Conclusion

Although there are no guarantees in the crypto world, recent developments show that Bitcoin is paving the way for a historic milestone, setting new all-time highs daily. This signals that Alt tokens are likely next in line for growth. As this text outlines, the upcoming period requires strategic thinking, and we hope our advice will guide you toward success.

We urge you to remain realistic. While Twitter posts of someone turning a $2 investment into millions may look enticing, the reality is often different. Learn about crypto as a technology rather than merely a means to make money. Understanding it better will help you identify projects with real potential.

Take profits when satisfied and avoid “chasing the train that’s already left,” as new opportunities arise daily in the crypto world. Above all, never let your investments exceed what you’re willing to lose. The crypto market is full of ups and downs, and its adrenaline-fueled nature can quickly become addictive if emotions overpower reason.

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