Hello, community! Cryptocurrency is one of the most dynamic and technological niches that is actively evolving. Besides Bitcoin, which even your grandmother might have heard of, today, there are numerous other coins, including stablecoins, memecoins, shitcoins, and many others. These can be categorized under a separate group known as altcoins, or simply “alts.” What are altcoins, what types exist, and when is their season? Let’s dive in.
Before we begin, let’s remind you that investing in crypto is extremely profitable! Learn how and why to do it in our dedicated guide.
What Are Altcoins?
The largest cryptocurrency by market capitalization is Bitcoin. Over 50% of all money invested in cryptocurrencies is concentrated in this coin. However, Bitcoin is far from being the only coin.
There is a separate category of cryptocurrencies that includes practically any coin other than Bitcoin. This category is called altcoins, or “alts.” It also contains many popular coins that even people unfamiliar with the niche have heard of. For example, the second-largest coin by market cap is Ethereum.
Altcoins owe a lot to Ethereum, whose blockchain many of them use for their existence. However, let’s leave that discussion for another time.
There are already so many altcoins that they can be subdivided into categories:
- Stablecoins – Coins that mimic the value of real-world currencies. For example, if we talk about the dollar, its crypto alternatives include USDT, FDUSD, USDC, etc. All of these are pegged 1:1 to the dollar.
- Memecoins – Coins built on certain memes. Among these, DOGE-coin stands out, having surged in price after being mentioned on Twitter by Elon Musk. Today, even more memecoins exist, some of which are in the TOP-20 cryptocurrencies by market cap. Examples include SHIB, Floki, PEPE. These coins are actively traded but thrive mostly through speculation rather than any inherent value.
And many others, such as PoS-altcoins, DeFi-altcoins, payment tokens, security tokens, utility tokens, and governance tokens. Altcoins can not only be mined like Bitcoin, but some can also be obtained through staking. Staking is similar to a bank deposit, where your coins support blockchain operations, and in return, you receive rewards.
What Is the Altcoin Season?
One phenomenon that deserves special attention is the altcoin season. Understanding this is equally useful for potential traders and those looking to invest in cryptocurrency. The altcoin season is a key period when the crypto market grows actively, attracting more people, and it’s an opportunity to profit from this trend.
So what is the altcoin season? It’s a period when the trading performance of altcoins significantly surpasses that of Bitcoin. The key point is that it’s a consistent trend that holds for some time.
For instance, when you visit an exchange and see that Ethereum rises in price daily while Bitcoin remains stable, it might indicate that the altcoin season is underway.
Why does this season happen? The reason lies in traders diversifying their assets and purchasing other coins, driving their prices up. Sometimes, altcoins are bought using Bitcoin, such as through BTC/ETH trading pairs. This further propels the altcoin season since selling Bitcoin lowers its price while the price of altcoins rises as they are bought.
Global trends can also trigger the altcoin season. For instance, the recent NFT craze led many to invest in altcoins. Currently, Web 3.0 and tokens based on this technology are gaining popularity. Who knows? This might be the driving force behind the next altcoin season.
Is There an Ideal Time to Buy Altcoins?
Although the altcoin season signifies a period when investors actively purchase coins other than Bitcoin, it doesn’t necessarily mean that you should invest in cryptocurrencies at this moment. Prices are often inflated, and you could face significant losses.
However, this is not financial advice, but rather insights based on personal experience.
During the altcoin season, it’s better to invest in advertising campaigns and direct traffic to cryptocurrency platforms. News about coins like Ethereum or Solana reaching new ATH (all-time highs) will spread widely. And someone like Vasyl, who just sold his pig yesterday and is looking for investment opportunities, might decide to buy what’s rapidly increasing in value. If we direct him to an exchange, we profit alongside him. And who loses in this scenario? The question is rhetorical.
Conclusion
Altcoins represent a significant portion of the cryptocurrency market, accounting for nearly half of it. There are many well-known coins that rival Bitcoin in popularity. However, Bitcoin remains the most reliable asset in the eyes of many investors, which explains its current market capitalization.
Nevertheless, altcoins and their seasons provide a great opportunity for affiliates. When cheap and lesser-known coins rise significantly in value, it creates a precedent that attracts attention. Many will want to seize this opportunity, which benefits those who are quick to set up campaigns and promote crypto!
How well do you understand crypto? Or perhaps you know exactly when the next altcoin season will occur? Join our new crypto channel 💎CryptoGeek to learn about new earning opportunities. Together, we’ll build and grow not just an affiliate but also a cryptocurrency community in Ukraine!
Best regards, Your Geek!
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