Choosing the Right Altcoins for This Bull Season
Altcoins, or alternative coins, have been trending for months.
Altcoins are typically described as any other crypto asset which isn’t Bitcoin. Hence, the period during which altcoins perform well is usually referred to as an altcoin season or “altseason.” There are a few factors which can be monitored to determine whether we’ve entered an altseason — and, as of now, it does seem like it has happened.
The first thing to look at is the Bitcoin Dominance index. This is a metric which monitors the relative share of Bitcoin’s market cap to that of the entire industry. At the time of this writing, BTC dominance stands at 51.2 percent, according to data from CoinMarketCap.
It’s important to note that this marks its lowest point since August 2018, which indicates that altcoins are performing increasingly well.
One of the main characteristics of an altcoin season is that certain cryptocurrencies will spike up in value massively over short periods of time. We observed this back in late 2017 and early 2018 when gains upwards of 500 percent overnight weren’t something unusual.
And while the prominence of the current period is nowhere near that level, we can still see certain altcoins mark notable gains in relatively short periods of time. For example, a few days ago, a cryptocurrency called Everex (EVX) spiked with 300 percent over the course of two short days.
Picking the Right Altcoin for This Season
Picking the cryptocurrency which will explode in value is never an easy task. However, looking at the Top-10 chart on CoinMarketCap, we can definitely identify some of the stronger performers to keep an eye out for.
Litecoin (LTC), for example, has been performing splendidly throughout the past three months. At the time of this writing, the cryptocurrency is trading around $80, which is about 150 percent more compared to its price at the beginning of the year. Moreover, LTC has marked an increase of more than 20 percent in the last 24 hours — which is also a prominent sign.
Another altcoin which doubled up in value for the same period is Tezos (XTZ). It’s currently trading at around $1, which marks an increase upwards of 100 percent in the last three months.
Of course, there is a huge amount of altcoins out there and spotting those that will perform the best is nearly impossible. Coins and tokens with large market capitalization are usually less risky investments due to a good deal of stability and trading volume, which are basic requirements for many traders.
Your Trading Platform Also Matters
It’s also very important to be careful when you pick up the platform where you’ll be trading these altcoins.
It’s not necessary for the cryptocurrencies to mark unimaginable gains for you to make a lot of money. Evolve.Markets, for example, supports leveraged trading of up to 50:1 on its altcoin pairs — which can be used to substantially increase profitability, capitalizing on the current altcoin season.
Both Litecoin (LTC) and Tezos (XTZ) are supported by the platform, as well as other altcoins such as Ripple (XRP), Ethereum (ETH), Zcash (ZEC), Bitcoin Cash (BCH), Monero (XMR), and others.
However, it’s also worth noting that margin trading not only has the potential to magnify your profits but also magnify your losses on the losing trades.
Additionally, if you don’t feel like trading cryptocurrencies, Evolve.Markets also gives you access to leveraged trading on FOREX, commodities, and indices.
The Bottom Line
The presence of an altcoin season provides traders with an opportunity to make quick gains, capitalizing on the increased price volatility. Of course, increased volatility also means that things can go south incredibly quickly. Hence, it’s important to be extra careful and cautious throughout periods of the kind.
Which altcoin will perform best in the current altcoin season? Don’t hesitate to let us know in the comments below!
Disclaimer: This article is not investment advice and should not be construed as such. It is for educational purposes only. Bitcoinist is not responsible for any investment decisions made by readers of the website. Always consult a trained financial professional before making any investment decisions and be prepared to lose your entire investment.
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