Things You Should Know About Altcoin Season

There are currently over 2000 altcoins listed on Coinmarketcap.com and many of them have a relatively low market cap. Some of these altcoins have so much potential but they just don’t get enough attention from the public yet due to lack of marketing or simply because not enough people know about them.

One good thing about buying altcoins in an Altcoin Season is that there’s not too much competition for you to buy at a low price, since many investors are saving their money for Bitcoin instead of investing in altcoins. This means that you can buy more coins for less money during this time period.

What is Altcoin Season?

Altcoin season is a phrase that refers to the time of year when altcoins tend to perform particularly well. In general, altcoins are less correlated with Bitcoin than they are when compared to other periods of the year. This means that during altcoin season, it’s easier to make gains by investing in altcoins rather than just sticking with the major coins.

Altcoins are always the first to tip when the bull market comes back. The most recent one was Ethereum and its token Ether which rose by over 5000% in 2017.

Altcoins have some of the highest appreciation potential especially when a bull market starts. This is because many altcoins are greatly undervalued and they are just waiting for an influx of new demand to rise massively in value.

This is called the Altcoin Season, where new money flows into the crypto markets which drive up the value of all altcoins.

And since Altcoin season is upon us, Stellar Lumens (XLM) is poised to be one of the biggest winners of the year. It’s easy to see why: its fundamentals are strong and its community is growing quickly.

Cause of Altcoin Season

Well, everyone knows that Bitcoin is the big daddy of the cryptocurrency market, and where Bitcoin goes all altcoins tend to follow, but what is it exactly that causes this phenomenon? It’s pretty complex and there are many different factors at play.

For starters, the demand for altcoins tends to rise significantly when Bitcoin prices reach unsustainable levels. When you have a currency that has been pumping like crazy, everybody wants in on the action. People are buying up Bitcoin for future gains and as a long-term investment.

The more people start doing this, the more demand there is for Bitcoin. As the demand for Bitcoin rises, its price rises with it–this is the first factor in Altcoin Season because it’s causing an increase in the price of all of the altcoins that are tied to Bitcoin via trading pairs.

When Does Altcoin Season Start?

Altcoin Season is a term that originated on the BitcoinTalk Forum, used to describe the period of time when altcoins have a high chance of increasing in value.

The concept of Altcoin Season has been around since 2013, but it wasn’t until late 2015 that the term became mainstream due to the dramatic rise and fall of Darkcoin (now Dash). It is commonly accepted that there are four seasons of the year: Spring, Summer, Fall and Winter.

Each season lasts 3 months: Spring from March 21st to June 21st, Summer from June 21st to September 21st, Fall from September 21st to December 21st, and Winter from December 21st to March 21st.

Summer and winter are not considered “seasons” for altcoins as they are not optimal times for coins to increase in value. It was therefore concluded that there are only three seasons: Spring (March 21st – June 20th), Fall (September 20th – December 20th), and Winter (December 21st – March 20th). It is during these “seasons” that altcoins typically have a high chance of increasing in value.

Factors Affecting Altcoin Season

  1. Altcoin season attracts people who are interested in cryptocurrencies, but do not have the technical knowledge to mine them. They may learn more about these altcoins while they are being picked up en masse by other buyers, or they may buy them without even knowing much about them.

Many of these people have a lot of money to spend because it isn’t their primary income, so they may end up buying things at high prices that wouldn’t be sustainable if the price was sustained over time.

  1. Altcoin season brings a lot of hype into cryptocurrencies as a whole. The prices of Bitcoin and other cryptocurrencies tend to go up during this season as well, because we all want to buy into whatever the next best thing is that is trending right now.
  2. Economic factors: If the price of Bitcoin dips and people have less money to spend on it, they may look for more affordable coins to invest in. This could also happen if people start looking into other forms of investment that are less volatile and risky than Bitcoin (like stocks). In either case, they may turn to other cryptocurrencies they can buy with fiat currency.

Some altcoins have historically done really well during altcoin season. One example is TRON (TRX), a relatively new cryptocurrency whose TRX price went from $0.02 per coin to $0.30 per coin between November 2017 and March 2018.

  1. Technical factors: When there is a problem with Bitcoin or another cryptocurrency’s network or blockchain (in terms of technical problems or issues with the wallet), people might want to use altcoins as an alternative until the issue is resolved. For example, if the Ethereum network is down or slow, people might want to check out some other coins that perform better during such times (for instance, Litecoin).
  2. Media attention: Some altcoins can get a lot of media attention and hype around them because they have unique features that make them appealing to certain groups of people. People who didn’t know about those coins before might become interested in them when they hear about them from various platforms.

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