Is the Altcoin Season Better than Bitcoin?
All the coins and tokens rather than bitcoins are called altcoins. Altcoins are used for all the new coins except bitcoins, which are trying to make their place in the crypto market like Ethereum, dodge coin, Solana, and luna.
The bitcoin price is fluctuating and is too high that it is out of the investor’s capacity to buy it. The bitcoin exchanges enlisted it at a higher price to the public. So that’s why the investors and traders are looking for other opportunities like altcoins. Altcoins provide the same opportunity and functionality as bitcoin but at a low price.
Altcoins are also referred to as alt season. In this era, new coins entered the market to attract investors and encourage them for trading at low prices. However, there is a low margin of profit in it but there is also a low risk of loss. Investors like to buy altcoins nowadays due to their low price and high volatile feature.
Bitcoins prices are too high making people too desperate and nervous about waiting to buy them. But they are out of budget and not able to buy a single bitcoin. There are old bitcoin holders who become billionaires in a couple of years. In addition to that, they act like a monopoly on bitcoin.
Investors or traders who have a low budget of investment are preferring now altcoins for investing and trading. They also like to buy stablecoins that have very low chances of failure irrespective of bitcoin. Whether the altcoin has a feature of high volatility but it also encourages to make tons of profits in a short time by adopting the right strategy.
Benefits of alt season
There are multiple benefits of alt season that are rapidly growing in the crypto market.
Diversification in investment
As we discussed, altcoins are invested at low prices with high volatility. This low price creates an opportunity for an investor to make an investment in a number of altcoins. This planning can increase the chances of success of the investor in the crypto market. Diversification of investment is also beneficial to reduce the risk of loss. In this view, you can save a significant part of your investment.
KuCoin is the world’s recognized crypto exchange with numerous collections of altcoins for trading. KuCoin also has a live dashboard to reflect the latest prices of altcoins. You can join KuCoin with just some random click and enter your details and boom, you are login to use the KuCoin dashboard. KuCoin also listed the bitcoin, stablecoin, and token for the ease of the users. Every user is fully independent to make any trade or investment on his behalf by using the KuCoin platform.
After the success of bitcoin Ethereum is launched and it grabs the attention of investors but now Ethereum price is also skyrocketing. The general public who is new and does not know too much about the ups and downs of the crypto market can reduce their risk by investing their money in stablecoins. Stablecoins act like a US dollar so that’s why they are also known as digital dollars. A nice feature of stablecoins is that they are not highly volatile. They are backed by physical assets just like reserves that are very helpful to maintain their stability in the market.
Timely entry and exit into the market
Time management is very important in the altcoin season. You have to enter the market when there are chances to compete with your strategies. And after receiving your profit, exit the market as soon as possible. Late entry or exit spread harmful effects on your trading as well as investment.
In the bottom line, you can conclude that Bitcoin price is very aggressive and bring a drastic change in the profit line but in contrast to that, some investor can not afford it. Furthermore, they avail the other opportunities to get the same profit as from bitcoin. The old saying, don’t put all your eggs in one basket and the alt season practically make investors do it. They spread their investment at different altcoins to get the maximum benefit and reduce the risk of loss.