Crypto Global
The 2021 altcoin season has only just begun!
Oct 26, 2021
The phases of the crypto market seem pretty predictable. Crypto tends to work in cycles. Bitcoin will peak first, and when you see the big Bitcoin money getting out of Bitcoin, Bitcoin investors reinvest their profits in altcoins.
So whenever we see a flood of new money in Bitcoin and investors realize that other crypto assets could bring even more returns, we see a phase overlap with funds flowing into Ethereum. At the time of writing, we're actually experiencing this, as Ethereum hit a new all-time high of $ 4,366.09 4 days ago.
This is the flow of money in crypto. First, the entire crypto market capitalization grows with Bitcoin and Ethereum. And soon after that - usually - we'll see other large-cap altcoins like Polkadot, Solana, etc. outperform Bitcoin. So Bitcoin won't be the only asset that makes good profits. The best way to prepare for any type of phase change is with a diversified portfolio.
Source: Twitter "Path to Altseason"
We believe the new altcoin season is coming soon. The next few weeks and months will be more interesting for Altcoins, but also for NFTs. NFTs have become increasingly popular in the crypto community in recent months. And here we believe that the chance of good profits at the “right” time is higher. In addition, to this day, people massively underestimate NFTs. The NFT market as a whole has already generated several projects with 100-fold and 200-fold returns this year alone. We are sure that this can be generated again after the altcoin season. But we also have to admit that this is not that easy as there are a number of factors to consider that are unique to NFTs and that are not found in other crypto asset classes.
Get familiar with how the crypto market works. If this is your first market cycle, you might find that you are investing in assets at a time when the market is extremely overbought and heavily greedy or underbought and succumbs to fear. It is important to know that understanding market cycles can save you a lot of stress as a trader.